Is it appropriate that Bitcoin is called the new gold in the current era?
In terms of market capital, we have currently checked that gold has a market of around $14 trillion, while the market for cryptocurrencies is still far in the range of $1 trillion.
With the market value above, we can confirm that Bitcoin is still very far behind when compared to the current market for precious metals such as gold.
In terms of market capital, we have currently checked that gold has a market of around $14 trillion, while the market for cryptocurrencies is still far in the range of $1 trillion.
However, we also cannot deny that cryptocurrencies currently have very impressive progress when compared to assets that are thousands of years old.
As we already know, gold has a very old age as an investment asset and its history has never been forgotten by investment players since thousands of years ago.
Even so, since the emergence of Bitcoin, many people have said that Bitcoin is the newest form of gold that can be accessed digitally and is very easy to use.
How true are the comparisons from the speculation that arises from these circles of society?
Let's find the truth here.
Whether Bitcoin can currently be equated with gold, we can find the answer to this from several results of the debate that occurred.
In fact, these two assets, which have provided huge profits for their holders, have several similarities, but are also not without several differences.
Gold and Bitcoin Similarities.
Of the two assets that we are currently discussing, they are actually rare assets, where the amount of Bitcoin and Gold is limited, in the cryptocurrency world, Bitcoin only has 21 million coins.
These two rare assets also have the same defense against inflation, where the value of fiat money decreases in value due to inflation, so Bitcoin and Gold will actually experience a significant increase in price. Both gold and cryptocurrencies are decentralized.
Difference between Bitcoin and Gold.
For thousands of years, since the time of our ancestors, we know that gold has a real physical form, where we can touch it or can turn it into jewelry.
This is very different from Bitcoin, where its existence is only digital without having anything physical that we can touch with our own hands.
We also know that the history of gold is very long and has various forms of savings, while the history of bitcoin is still relatively new and does not have a history like that of gold.
In addition, Bitcoin appears in human life in the current era as a means of payment that has various conveniences, whereas this has never been done by people in any era with Gold.
Conclusion:
Bitcoin and Gold are both known as rare and decentralized assets whose existence on this earth is very limited and could run out in the future.
These two assets are also resistant to inflation, which often occurs with fiat money which we currently use to carry out transactions, whether directly or digitally.
Even so, when investing in gold, of course we have real physical gold and can test its content directly, but cryptocurrencies like Bitcoin are only digital assets where we can only own them digitally without having real physical possessions.