Gold is hardly useful at all in the industry but of course it doesn’t mean it isn’t useful at all. As a matter of fact, it’s not just only a popular metal used in jewelry but also a proven long term store of value during the times of crisis. The shiny yellow metal has taken as something that everyone else comes to in the times of panic.
Gold Supply Shrinking On Earth
But what adds to it being the most popular store of wealth? Before getting into the dawning Bitcoin era and its noble characteristics, the main quality of gold has been its relatively rare supply among having many real-world applications and use cases.
Even with modern technology, gold remains difficult to be found. Over time, the supply of gold keeps on shrinking and experts are warning that gold supply could soon to be depleted.
In 2018, Ian Telfer, the chairman of Goldcorp said,
“Well, either this year it starts to go down, or next year it starts to go down, or it's already going down… We're right at peak gold here.”
Telfer isn’t alone in calling this out as Nick Holland, CEO of South Africa's largest gold producer Gold Fields, said, “We were all talking about how production was going to increase every year. I think those days are probably gone.”
A constraint on the supply of gold will work positively for its prices as Kelvin Dushnisky, the President of mining giant Barrick Gold has said that the falling grades and product levels coupled with lack of new discoveries will be bullish for the medium and long term outlook of gold price. This could be why gold saw its biggest weekly rally in three months.
However, this shrinkage in gold supply might only be on Earth as for quite some time now there had been reports of gold found on asteroids. Could asteroid mining be the next gold rush?
But Space has it in Abundant Amount
Last year, there have been reports of very special space rock, asteroid Psyche 16 that is entirely made of metal including gold, nickel, and iron. With an estimated worth to be around $700 quintillion, this asteroid as Outerplaces put it, have the potential to
“make us all richer than the Pharaohs or… crash the world economy.”
Interesting fact: A single garden-variety metallic asteroid contains vastly more gold than has ever been mined in the history of the world pic.twitter.com/lvi5TodGMB
— World and Science (@WorldAndScience) April 27, 2019
Already a target of NASA mission, it is speculated asteroid mining will gain momentum once the rare metal starts to run out. And as the prices of these metal reach unsustainable heights, asteroid mining will start making sense economically.
Deep Space industries, one of the space exploration companies is also working on new technologies to make asteroid mining feasible. With China’s plan to dominate the space and Elon Musk’s growing space empire, in the coming decades, we could see this becoming a reality.
This is one reason gold is not a suitable sound monetary base for a spacefaring civilization. We can expect rapid inflation of the gold supply sometime this century. https://t.co/Nx82tG29xq
— Steven Smith (@stalcottsmith) April 27, 2019
While there would be an influx in gold supply, Bitcoin experts argue the case for digital gold, Bitcoin that can never exceed its fixed 21 million supply. In many ways such as being portable, verifiable, and unconfiscatable Bitcoin is even better than gold and could become an alternative store of value.
The realm of gold as a store of money will come to an end. Once theoretically economically viable to mine off-planet, markets will drop its valuation to industrial utility use. Meanwhile we march on into a digital world with a digital scarcity called Bitcoin. @PeterSchiff https://t.co/KGqgbn23VK
— Willy Woo (@woonomic) April 27, 2019
Live Bitcoin (BTC) Price:
1 BTC/USD =$10,712.2626 change ~ 0.49%
Related Gold and Bitcoin (BTC) News to Research:
- Recognized Investor Calls Bitcoin Peer-to-Peer Gold, Econ Writer Says Scarcity is a Mirage
- It’s A Matter of Time before Bitcoin Eventually Replaces Gold – Investment Experts
- Why Does Billionaire Warren Buffett Not Invest a Single Dollar into Either Gold or Bitcoin?
- In an Economic Crisis, Will Countries with More Gold or Crypto Assets Fare Better?
- Expert Exciting Outlook: Bitcoin Could Be Worth $350,000 BTC/USD If It Displaces Gold
- Bitcoin's Function As A Gold Insurance Policy: Crypto Asset Makes Its Store Of Value Case