Over the past few years, Bitcoin, the largest cryptocurrency has gained huge popularity and people are moving more towards it. During the time of financial crisis and inflation in various parts of the world, Bitcoin emerged as a saviour. People have started looking at cryptocurrencies, especially Bitcoin as a store of value. However, an everlasting argument always revolves around this which argues whether Bitcoin should be considered as a store of value and a popular one is Bitcoin vs Gold, where people keep comparing both these assets.
Traditionally people have been using gold as a ‘safe haven’ or ‘store of value’ which acts as a hedge against financial crises and problems that people face. Now people have started considering Bitcoin in place of gold. In fact, some claim it is far better than Bitcoin.
Gold is that precious metal which people have been using for centuries and is considered as a store of value. Over centuries it has been seen that gold has gained huge importance among people and has become highly precious among other metals. The major question that comes here is what makes gold valuable? In order to gain knowledge regarding the value of gold, one needs to understand that the price of gold has not been set by any government or organisations. The price of gold completely depends on its availability and production. This is the reason that in some countries gold is cheaper while there are several countries where the price of gold is very high. Now comes the reason why gold is highly valuable, here are several things which will justify this high price-
These two things play quite an important role in making gold highly valuable among other metals.
Even though Bitcoin and Gold are quite different in nature, both of them are also similar in a lot of ways. Both these assets are obtained through mining, the only difference between both is that gold is physically mined while Bitcoin is mined virtually. Otherwise, there are a lot of similarities between both and the major one is that they are used as a ‘store of value’. Now people have started arguing whether Bitcoin is better than gold and there are a lot of things which proves it right. Here are few points indicating how Bitcoin is better than gold:
In order to make a comparison between both of these assets, there will be a need to find out the price of both Gold and Bitcoin over several years.
Here is a data which will show the price and trading volume of gold over the past three years -
These prices are recorded at the starting of each year and it has been seen that there have been both ups and downs in the price of gold.
The price of Bitcoin over the past three years-
If the comparison will be made in both the charts, it has been seen that there have been several ups and downs in the price of both the assets over time. Their value isn’t fixed and completely depends on their availability and production.
The Gold vs Bitcoin argument will keep going on and even after so many benefits, there are people who will still stick to gold because of their emotions and trust associated with it. However, over the past few years, it has been seen that there is a subsequent growth in Bitcoin adoption and people have started moving towards it rapidly. This seems that they must have started considering Bitcoin as a safe haven and hence they have started preferring Bitcoin over Gold when it comes to safe-haven.
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