Why is bitcoin more profitable than gold as an investment asset?

In the expert community, many compare Bitcoin with gold, but recently more and more observersThey say that soon the largest cryptocurrency will become more attractive than precious metal. This will happen after the reduction in the award of bitcoin miners in May 2020 (halving).

Bitcoin completed its first decade witha staggering 9 million percent increase in value, becoming the best asset in 10 years. In addition, the value of bitcoin in gold has grown significantly amid increased global economic uncertainty.

Leading crypto exchange Coinbase, which is about to move 1 million BTC into its storage, surpasses any other exchange in its holdings:

«Gold and bitcoins are a safe haven from the devaluation of fiat currency, which has historically been driven by rising government debt»,— written on the Coinbase blog.

Recently, Coinbase CEO Brian Armstrong recommended people to “consider cryptocurrencies” as the US government debt is projected to rise to 98% in the next 10 years.

«Why invest your livelihood in something that can be manipulated or devalued without your participation»He said about fiat currencies last week.

Currently, Coinbase's position is as follows:

«Bitcoin is a store of value,competing with gold in the digital age, which, among other things, is armed with technological advantages, accelerating development and strengthening the global market».

Peer-to-peer network already has several advantagescompared to the precious metal in terms of the deficit model, the possibility of audit, confidentiality, the absence of geopolitical barriers and low commissions.

Unlike gold and Bitcoin, paper money is nothave a fixed offer. Since 1913, the US dollar has lost more than 96% of its value as the Federal Reserve took over the US banking system. Now the Fed has the power to generate more money “to achieve policy goals,” but “printing money affects all citizens because it reduces the value of existing ones.”

Over the years, the price of gold has risen from $ 20 to $1500 because governments simply cannot produce it in large quantities. This element accounts for only 0.00000031% of the earth’s crust and “there is an inverse relationship between elementary shortages and the value of the goods.

In addition to this property, bitcoin has a particular advantage - it can be transferred via a communication channel.

Due to its shortage, gold has historically been a means of saving, bitcoin with weakening volatility and increasing acceptance over the years has become a means of accumulation of the new century.

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