Bitcoin Is Better Than Physical Gold, Here’s Why

Bitcoin Is Better Than Physical Gold, Here’s Why

Bitcoin, one of the most controversial topics when it comes to investment alternatives. Some people support it; some people hate it. Many people seem to think that Bitcoin is just a novel idea with no future. However, even though many skeptics do not believe in it, Bitcoin keeps proving them wrong. It is volatile, that’s true, but this year it’s been mostly going up.

And due to its price surge over time, many people started to compare Bitcoin to physical gold. Both assets go up in the time of crisis, especially in the year of 2020. So, it’s fair to compare Bitcoin to physical gold, due to their definition as a hedge against fiat inevitable inflation over time.

But, which one provides a better opportunity for the modern era? Here are some arguments for why Bitcoin is better than physical gold.

Easily Movable, Easily Verifiable

While both gold and Bitcoin have the same deflationary mechanism compared to fiat currencies, they are quite different in terms of how you obtain them. You see, this year is the year of pandemic where many people are afraid to go out due to COVID-19 fear as well as government restrictions. 

As you can see from this year, it’s not easy to go out and buy physical gold and store them at your own house. In many countries, the usual places where you could buy gold have been closed or not operating anymore. On the other hand, Bitcoin purchase has never been easier. You just need to connect to the internet, go to fiat-to-crypto exchanges, and that’s it. It’s borderless and it’s instant.

You can even move the Bitcoin that you purchase from one wallet to another. From one country to another. It’s easily movable, it’s easily verifiable because every record is on the blockchain. While you have to be extra careful with the physical gold that you hold on your hand, Bitcoin has plenty of options to keep it safe. For example, you have the option to use a hardware wallet if you are paranoid of some remote hackers stealing your BTC. You can also go to another country and keep your access to those Bitcoins that you own. Something that’s not easy to do with gold.

Bitcoin And Its Magic Number

Bitcoin also has a magic number that everybody loves, 21 million. Yes, Bitcoin maximum supply is only 21 million and this magic number would be able to help BTC to gain more attention. Physical gold “maximum supply” is still not exactly known. People can still keep mining it and perhaps will be able to process more gold than what’s currently predicted. On the other hand, Bitcoin won’t be able to get past 21 million of supply.

On top of that, the underlying technology behind Bitcoin would ensure the data and record are absolutely true, as thousands of miners have the exact same data. There’s no need to trust someone’s data about it. This would massively help Bitcoin to gain much more popularity in the eyes of young people who have become naturally skeptical of other people’s claims.

And despite the effort to bring gold to the blockchain (by XAUT and PAXG), the majority of blockchain enthusiasts don’t really pay attention to it as they are not very interested in holding one. They rather just go straight to buy gold if they want to buy gold. They don’t hold these gold-backed crypto tokens.

Both Can Co-Exist But Bitcoin Has Better Potential

Despite the fact that Bitcoin seems to have better potential than physical gold for a long-term hedge against fiat inflation, both can co-exist with each other. After all, gold has been approved by many banks and central governments as reserve assets. Bitcoin is not quite there yet but its market cap might grow much bigger if the world’s governments start to take it much more seriously than today.

One thing for sure. In the world of the digital era and fast-paced world, Bitcoin has better potential than gold due to its much more verifiable nature and immutable records on the blockchain.