Bitcoin has commonly been described as ‘digital gold’. This is because Bitcoin shares many of the same characteristics as gold. For example, Bitcoin is scarce, it is durable, it is portable, and it has a decentralized network. However, there are also some key differences between Bitcoin and gold.
For one, gold has been used as a form of currency for centuries, whereas Bitcoin is still in its early stages of adoption. Gold is also a physical asset, whereas Bitcoin is digital. Despite these differences, many believe that Bitcoin has the potential to become the new standard for storing value.
The metaphysical properties of Bitcoin allow for it to be sent overseas for nearly no cost instantly. The security system is an invisible magic phrase that unlocks access to a ledger of assets. It can be stored in your memory and moved without the fear of thieves or policy pirates taking a piece of your economic energy.
For example, if you are a refugee escaping war or a company moving jurisdictions, your Bitcoin can come with you stealthily. Gold cannot do this. These are the real use cases that Bitcoin offers over gold.
The Future Ahead
A futuristic risk of gold is if we begin mining the metal on other planets and asteroids, this will inflate the supply of gold, causing it to lose value. It looks like Elon Musk’s SpaceX or Jeff Bezo’s Blue Origin might one day accomplish this. But for now, this risk does not seem likely, although it is not impossible.
Quantum computing can be risky for Bitcoin because if quantum computers can crack the code, this could lead to a large amount of Bitcoin being stolen. However, the same can be said for centralized stock markets and central bank digital currencies.
If a large enough percentage of the world’s population decided to invest in Bitcoin, it could become the new standard for storing value. Only time will tell if Bitcoin will become the new gold. In the meantime, investors will continue to debate over which asset is the true store of value.