Gold vs. Gold 2.0 - Reloaded

Interesting the panorama that is shown every time we compare two completely different elements, both in their state and in their dimension; and it is that with the horizon that we have of these two refuge assets, it becomes formally known as two closely related enemies. I speak of nothing more and nothing less than gold and its version 2.0, bitcoin.

Many have been the writings about its comparison, differences, advantages and disadvantages, but with this pandemic of the covid-19 that we have in our yard, we must update a couple of things that perhaps we have not read in detail.

As a first point, mobility and storage; And it is that with this pandemic many have been the details that have been presented in the logistics of gold, from the disconnected refineries to their ability to mobilize and safeguard, everything has been a real fight. Obviously, the associated costs have skyrocketed, however this does not stop central banks and the bullion market. For bitcoin this point is not very relevant, the clear advantage of mobility is indisputable, but many indicate that not having a central bank endorsement does not make it very attractive.

Bitcoin does not need centralized support, its strength emanates from ordinary people, ordinary people, like you and me, and, very surely, from those millionaires, companies and banks that see this digital system as a great benefit to their finances.

Secondly, its issuance, and it is not known how many gold reserves remain to be explored and / or exploited and this is not so beneficial for the price; Bitcoin, on the other hand, with a limit of 21,000,000 coins, has a deadline and it is increasingly difficult to obtain it and the amount in circulation. This stands out if we add the recent halving that makes this digital asset beautiful and transparent. Trust is the key foundation without a doubt.

Thirdly, practicality, programmability, are two terms that are more tied to bitcoin than gold. This point is extremely key in the formation of this article, this is the forefront of the definition of a new payment system, since it is not controlled by any entity, its way of use is very simple and quietly divisible. As time passes, each fraction of this coin (satochi) becomes relevant.

The truth is that I do not have much information on how to explain this point with gold, I have not seen in these times people carrying a bag of physical gold nuggets paying and waiting for a change to buy things.

At the fourth endorsement point, we see that gold has no peer and this metal is the basis of comparison to any fiat currency, even bitcoin. We already have several gold-backed cryptos and a marketplace that sells digital currencies for reserve "gold", but we already know the idea and concept. Our currency is missing this point, but it won't be long until we see the pair of any metal over BTC.

I think of others, but the truth is that bitcoin advances and not to play, it continues to resume the order of many things; It has the support of many and is in the minds of others, but think about the most recent Bank of England event and the retention of gold in Venezuela, that does not happen with bitcoin and makes many governments think that it is not in their interest a move like that.

With bitcoin that does not happen, so it is inevitable.