The Difference Between Bitcoin And Gold: A Look At The Kings Of Value Storage
The Difference Between Bitcoin And Gold
Both bitcoin and gold are forms of investment, but each has its own qualities and benefits for an investment portfolio.
The most notable difference, of course, is that unlike gold which is a tangible asset, bitcoin and other altcoins are intangibles that have a positive money flow. They are also digitally mined and with every block that is mined, their monetary base increases.
Another difference between the two is their market cap. The production of gold is estimated to be around $140 billion and its price is around $1,300 per ounce. Dissimilarly, gold has a market cap of around $5 trillion, while bitcoin has one of $0.096 trillion.
Additionally, it can be difficult to create counterfeit gold and authenticity can be verified in a number of ways. It also has unique qualities, which is why governments and people tend to store it as a form of wealth. As for bitcoin, it is limited, divisible, democratic, and it cannot be counterfeited.
Unlike gold, one of the main troubles associated with bitcoin is that access requires a private key and when users forget their keys, they lose access to their bitcoins. Moreover, bitcoin tends to be more volatile than gold, which is stable in nature. As a result, there are some exchanges that are backed by gold, thereby decreasing the volatility of the bitcoins.
In any event, those who invest in either should do their due diligence to make sure that they are making the right decision for their needs.