Bitcoin Can Function As A Gold Insurance Policy: Leading Crypto Asset Makes Its Store Of Value Case


Bitcoin Gold

Ten years ago, the world experienced an unprecedented quantitative easing while also suffering from unmanageable debt levels. The crisis came to a head in 2017 as the federal reserve sought to reduce its $4.5 trillion balance sheet and raised its interest rates.

As a solution to the quickly devaluing currency, people have been using gold as a store of value for the last 5,000 years. We now have a new form of digital gold in the form of bitcoin, which is based on cryptography and computer science.

Bitcoin’s price peaked in 2017 and crashed in early 2018, but since then the coin has slowly made its way into the mainstream consciousness as a scarce, hard-capped digital store of value. Due to its properties, some consider bitcoin the equivalent to Gold 2.0 or simply “digital gold.”

Bitcoin gets its value from its limited supply of 21 million coins; once those coins are mined, no more will be minted into existence, which could give investors confidence that it will be able to maintain its value over the long-term.

Due to the increasingly volatile world politics, we could find ourselves in a prime position to start accepting a decentralized digital currency such as bitcoin. Although the coin is considered a high-risk investment, it does share many physical qualities with gold and other precious metals.

The price of bitcoin has been very volatile over the last few years, which the world is understandably wary of. This makes sense, as a new form of currency doesn’t come around every day. In fact, it is very unlikely for a new store of value to emerge and become adopted by the mainstream.

Looking back through time, we can see that ancient civilizations used rocks and seashells for thousands of years before moving to a more precious store of value. Once gold was discovered and deemed superior, it was adopted slowly and eventually became the monetary standard.

If the world decides that bitcoin is a better store of value than gold, then we could see a surge in the currency’s value over the short-term.

https://bitcoinexchangeguide.com/leading-crypto-market-assets-surge-bitcoin-btc-ethereum-eth-xrp-ripple-and-bch-coin-price-analysis/

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