Bitcoin is often compared to Gold. Gold still remains the benchmark as a store of value because it has a much older history and a more stable price. Yet Bitcoin has major advantages compared to the precious metal, here are 3.
Asset n ° 1: Storage
Physical gold is a safe asset, but it’s complicated to store.
1st option: you store it at home. Now you need a great hiding place and the more you have, the harder it is to hide.
2nd option: you put it in a safe or in management and this generates significant costs.
For Bitcoin, storage is simpler since we are on a digital asset. No matter how many bitcoins you have; all you need to do is keep your private key that gives you access to your bitcoins. No associated costs.
Asset n ° 2: Capitalization
Currently the capitalization of Gold is significantly higher than that of Bitcoin.
Bitcoin is around $ 450 billion in capitalization when gold is at $ 9 trillion. Globally, gold has a market capitalization 20 times that of Bitcoin. It would take a bitcoin at $ 450,000 per unit for its capitalization to match that of gold. We are still far from it and that’s good, it shows that the room for improvement is still enormous for this asset. Bitcoin is still at the beginning of its epic.
Asset n ° 3: The new generations
On the one hand, gold is not “modern”, it is an asset that has existed since the dawn of time. On the other hand, we have young people who are now ultra-connected and who live in a digital world that must react quickly. We are in a consumer society that pushes us to have everything, straight away.
Bitcoin fits perfectly into this type of dynamic society, and is therefore clearly able to meet the demand of the new generations.
I could be totally wrong of course, no one can predict the future but I can imagine gold remaining an asset prized by older generations for its role as a store of value, but I am convinced that the trendy asset will be Bitcoin because it is more accessible, more modern and more liquid!
The years to come will give us the answer to this hypothesis, but what is certain is that Bitcoin still has a huge room for improvement and is increasingly recognized as a “credible” asset within institutions.
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