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What should you buy, #Gold or #Bitcoin 
?
It's always best to do your own research before investing.
Here is a thread on the comparison of the 2
?It's always best to do your own research before investing.
Here is a thread on the comparison of the 2
1. #Bitcoin has often drawn comparisons to #Gold. It’s a debate as old as Bitcoin itself, and it will endure as long as both remain adequate stores of value. Gold, which has long been considered a safe haven for investments, has finally met it's ''equal''.
has often drawn comparisons to #Gold. It’s a debate as old as Bitcoin itself, and it will endure as long as both remain adequate stores of value. Gold, which has long been considered a safe haven for investments, has finally met it's ''equal''.
2. Brexit, upcoming US elections, COVID-19 stimulus packages designed to stimulate economic recovery, and other factors have created tension and expectations within financial markets. In such dire circumstances, people around the world are seeking a safe haven for their wealth.
3. Can #Bitcoin replace #Gold? Since the onset of the COVID-19 crisis, gold was steadily growing in price while Bitcoin experienced a few shakeouts. The gold price surged by 25%, while BTC price grew just under 14%.
replace #Gold? Since the onset of the COVID-19 crisis, gold was steadily growing in price while Bitcoin experienced a few shakeouts. The gold price surged by 25%, while BTC price grew just under 14%.
4. Is #Bitcoin digital #Gold? While many tend to call Bitcoin “digital gold,” there are many arguments against this nickname. Gold serves many purposes - it is used as an investment, store of value, manufacturing material, jewellery, or even medicine.
digital #Gold? While many tend to call Bitcoin “digital gold,” there are many arguments against this nickname. Gold serves many purposes - it is used as an investment, store of value, manufacturing material, jewellery, or even medicine.
5. However, long gone are the times when #Gold served as a payment method. You can hardly buy food or clothing using gold bars. Making a transaction with physical gold is also slow, expensive, and risky; and that’s where #Bitcoin comes into play.
comes into play.
6.Because of its digital form, you can’t physically possess #Bitcoin . Hence, it can’t be used for the purposes of manufacturing, medicine, or jewellery. But it can be used for daily peer-to-peer transactions, for low-cost and fast money transfers, or as a long-term store of value
. Hence, it can’t be used for the purposes of manufacturing, medicine, or jewellery. But it can be used for daily peer-to-peer transactions, for low-cost and fast money transfers, or as a long-term store of value
7. 4. #Bitcoin vs. #Gold comparison. Let’s look at the main similarities and differences between Bitcoin and gold to understand where the value of both of these assets lies and what makes their price increase.
The attached table compares the traits of BTC and gold.
vs. #Gold comparison. Let’s look at the main similarities and differences between Bitcoin and gold to understand where the value of both of these assets lies and what makes their price increase. The attached table compares the traits of BTC and gold.
8. Scarcity / limited supply: Demand can quickly increase the value of assets, both #Gold and #Bitcoin are scarce; With Bitcoin, supply is transparent and fixed. No one really knows much gold is left to be mined, but we know that there will never be more than 21 million Bitcoin.
are scarce; With Bitcoin, supply is transparent and fixed. No one really knows much gold is left to be mined, but we know that there will never be more than 21 million Bitcoin.
9. It’s important to note that the value of both assets could be endangered by future tech advancements that could either make them obsolete or easier to mine. #Gold is also threatened by massive deposits stored outside of our planet, but that’s going too far into the future.
10. It’s hard to verify the quality & purity of gold, or whether it’s even gold, without the right tools. Gold is prone to counterfeiting and reduced purity, while #Bitcoin is fully counterfeit-resistant, thanks to the blockchain network, which verifies & records every mined coin
is fully counterfeit-resistant, thanks to the blockchain network, which verifies & records every mined coin
Portability: Whether you own physical gold or IOU, gold isn’t easy to transfer. It takes days, if not weeks, to transfer physical gold to a different location or to make a transaction. #Bitcoin can be transferred anywhere in the world in less than 20 minutes using a phone.
can be transferred anywhere in the world in less than 20 minutes using a phone.
12. Decentralization applies to both the issuance and governance of valuable assets. #Bitcoin ’s issuance and governance are both completely decentralized, as there’s no central entity that issues (mines) new bitcoins, regulates its supply, or governs the network.
’s issuance and governance are both completely decentralized, as there’s no central entity that issues (mines) new bitcoins, regulates its supply, or governs the network.
13. #Gold, on the other hand, has a very centralized mining process, with only a few mining corporations controlling the market. Gold trading is also very centralized, and Peer-2-Peer transactions are minimal and illegal in many parts of the world.
14. Divisibility: is an especially important trait in the trading and exchange of goods. You can divide #gold, but you can hardly do that at home. A single #bitcoin can be divided into 100,000,000 Satoshi. Can you imagine paying for goods with gold grains?
can be divided into 100,000,000 Satoshi. Can you imagine paying for goods with gold grains?
15. Durability: wealth should be stored where it doesn't dissolve over time and stay in pristine condition over the years. #Bitcoin is stored digitally, and therefore it cannot deteriorate. #Gold is also very durable and retains its physical characteristic well.
is stored digitally, and therefore it cannot deteriorate. #Gold is also very durable and retains its physical characteristic well.
16. Fungibility: Fungible assets simplify the exchange and trading process, as fungibility implies equal value between the assets. Both #Bitcoin and #gold are easy to exchange for different assets or goods, and both score high.
and #gold are easy to exchange for different assets or goods, and both score high.
17. What should you buy? #Gold or #Bitcoin ?
Like I said before, It is always best to do your own research before investing. This thread is a vast simplification of a complex issue, and it's not easy to make predictions based on only the things I have briefly covered.
?Like I said before, It is always best to do your own research before investing. This thread is a vast simplification of a complex issue, and it's not easy to make predictions based on only the things I have briefly covered.
18. I understand #crypto better than the #goldmarket, so it's natural that I gravitate more towards #Bitcoin , but I don't underestimate #gold. Its track record is very clear. Both assets have proved to be an attractive store of value and long-term investments.
, but I don't underestimate #gold. Its track record is very clear. Both assets have proved to be an attractive store of value and long-term investments.
