One of the main appeals with Bitcoin is its decentralised nature. There’s a growing trend towards taking control of your personal finances and having more independence from the authorities.
Banks are now regularly making it difficult for customers to spend their own money. It’s common for transactions to be blocked if a bank doesn’t approve and there’s an increasing feeling that authorities are dictating what we can and can’t do.
With the 2008 bank bail-outs still fresh in the mind, the post-Covid economy suggests high street and central banks are once again vulnerable. But with global debt now at record highs, bailouts may not be offered, leaving savings susceptible to being taken. Bitcoin allows payments outside of the banking system, making overseas payments easy and instant.
Similarly, Governments can increase interest rates and taxation to impact and regulate their own currency and economy, but currently have no control or power over Bitcoin.
For this reason, Bitcoin represents a huge danger to the control and prosperity of the establishment, which is why crypto’s adoption is meeting huge resistance from these institutions.
It’s common knowledge that the threat Bitcoin poses to central banks has motivated them to start developing their own Central Bank Digital Currencies (CDBC) to compete with Bitcoin. The UK, US, China and Euro-region are all several years into development of these CBDCs and plan on launching them in the coming years. If they’re widely adopted, it could spell the end of Bitcoin. But the fact that such ‘centralised’ digital currencies could be used to control how the public spend their money, they are only acting to strengthen the resolve of decentralised crypto supporters.
Clearly gold is a long-established and accepted market, so experiences less resistance from the authorities. It enables the public to take a degree of control of their finances outside of the general banking system.
FAQs
The real reasons Bitcoin is better than gold
As clear as Bitcoin's outperformance of gold is on a price basis, there are several other characteristics that make it a superior store of value built for the future. Most apparent would be its finite supply.
How does Bitcoin have good value as compared to gold? ›
Bitcoin derives its value from scarcity, cryptography, and decentralization. Also, its limited supply at 21 million coins, makes it a highly-priced asset. Gold derives its value from scarcity, owing to the limited availability of gold deposits in the world.
Is there a better investment than gold? ›
stocks: Which is the better investment? Stocks have generally performed better than gold over the years, but there can be exceptions. Looking back 20 years, for example, gold has outperformed the S&P 500.
Can Bitcoin surpass gold? ›
In conclusion, while Bitcoin's current market cap represents only a fraction of gold's, Bitcoin's potential to surpass gold cannot be dismissed. With its scarcity, growing adoption, and increasing institutional interest, Bitcoin is likely to continue its ascent in the financial world.
Is Bitcoin safer than gold? ›
All the same, bitcoin enthusiasts point out that although the digital currency may be volatile, it has significantly outperformed traditional safe haven assets such as gold and US government bonds over the past four years of turmoil, which have witnessed a global pandemic and an inflationary surge.
What kind of gold investment is best? ›
Instead, the average gold investor should consider gold-oriented mutual funds and ETFs, as these securities generally provide the easiest and safest way to invest in gold. Larger investors seeking direct exposure to the price of gold can buy gold directly through bullion.
Are physical bitcoins worth anything? ›
The worth of a Physical Bitcoin is twofold: the market value of the digital Bitcoin it holds and its collectible value. The latter can far exceed the actual Bitcoin value due to rarity, material (some are made of gold or silver), and historical significance.
What are the advantages of gold over Bitcoin? ›
1. Tangible Asset: One of gold's primary advantages is its tangibility. Unlike digital assets like Bitcoin, gold is a physical commodity that can be held, touched, and stored securely.
What are the pros and cons of Bitcoin vs gold? ›
In conclusion, Bitcoin and gold each have their unique characteristics and advantages. Bitcoin excels in terms of digital scarcity, portability, divisibility, and resistance to counterfeiting. Gold, on the other hand, is known for its long-standing durability and history as a store of value.
What is the downside of buying gold? ›
Con: It doesn't give you passive income or steady returns
Unlike some investments that yield passive income (e.g., rental properties, some stocks and bonds), physical gold doesn't provide passive income, dividends or interest. You will only earn once you sell your gold.
Gold remains the best option to invest in, but it's limited in pricing per ounce. Gold is a valuable piece of metal that will soon be used as a currency in the crypto sphere. Central banks also store gold because of their perceived use in money.
What will $1000 of Bitcoin be worth in 2030? ›
If Bitcoin continues this pattern into 2030, the price could peak around 2029 or 2030. If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
What Bitcoin is backed by gold? ›
Kinesis gold (KAU) is a digital currency. Each KAU is backed by one gram of fine gold stored in fully insured and audited vaults, in your name. KAU lets you spend, trade, send and earn physical gold, anywhere in the world.
Why Bitcoin is not the new gold? ›
First, unlike gold, Bitcoin is not a collateral currency. Central banks hold gold because it can be a ready source of foreign exchange, especially for USD, during times of crisis.
What's a better investment than Bitcoin? ›
As gold bullion has been around for hundreds of years it's considered a relatively stable investment and safe haven during times of inflation. While it does go up and down, its swings are not as volatile as what's seen with bitcoin.
Is Bitcoin a better inflation hedge than gold? ›
Bitcoin appreciates against inflation (or inflation expectation) shocks, confirming its inflation-hedging property claimed by investors. However, unlike gold, Bitcoin prices decline in response to financial uncertainty shocks, rejecting the safe-haven quality.
