There is uproar on the horizon for the world’s most well-known cryptocurrency, bitcoin. The finance markets are preparing for a bull market to replace the current bear market with the hopes of seeing lasting changes, restoring some of the lost business that the current recession has caused. In the wake of this new prediction, hopefully taking place after the next halving date in 2020, there are new speculations regarding the value of bitcoin.
Emotions are running high and it seems as if many are hoping to ride the tidal wave of the new bull market, cementing the place of bitcoin as a true source of income. As is always the case when speculating about financial trajectories there are sceptics and there are believers. For the sceptics it is all about exercising caution while the believers are placing much emphasis on the fact that bitcoin for instance, in this case in comparison to gold, cannot be falsifiable.
Although it would seem that challenging the value of gold might be biting over a bit more than one can chew, the arguments of each side are interesting and presents a nuanced image of the bitcoin v. gold debate. Sites such as Best Bitcoin Exchange offers traders much insight and it is wise to keep track of the world of cryptocurrency as change is most likely coming.
Bitcoin v. Gold
Gold has been viewed as the king of currency since the very initiation of financial monetary systems and has been a primary store of value for investors almost as long. There really is no disputing its value, not only as a monetary source but also as a noble metal. However, bitcoin is holding its own having at times been worth nearly $20,000 per coin. Buying bitcoin is also pretty easy while real gold in large quantities still is hard and expensive to come by.
Which of the two currencies then holds the better store value? Believers of bitcoin stay true to form and argue that from a business and finance perspective the cryptocurrency will indeed replace gold as the leading commodity to store value. Bitcoin is an intangible asset, easily transferred and may be traded in the matter of minutes. Bitcoin also has a limited total supply and this scarcity in combination with the utilitarian value of the cryptocurrency is speaking in its favor. How about gold then? The idea of gold lasting forever has cemented its place in the world of finance and trade.
Still sceptics argue that the issue with gold is that you might own it on paper but until you hold it in your hand it is still a pipedream. This is however solved by the decentralisation and the electronic capacity of the cryptocurrency. Gold on the other hand is visual as well as tactile, it’s “real” while bitcoin is by nature invisible.
The future
The prediction then? Well, gold will most likely always appeal to people due to its historical financial track record and its presence as a natural resource while bitcoin still might be to novel for most investors, even though believers argue that it is still the most functional store of value. Only time will tell who’s predictions will hold true.
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