3 Reasons Why Bitcoin Cannot Replace Gold?
Despite the increasing value of Bitcoin which is nearing $5000, Bitcoin cannot take the place of Gold. There are multiple reasons for that.
(i) Bitcoin is only a currency that can be used for trading purposes. On the other hand, Gold can not only be used as currency but it is widely used in Jewelry, Dentistry items, Electronics, Aerospace, making it a highly coveted metal due to its intrinsic value.
(ii) Gold does not require computers, internet connection, and databases in order to be traded. It is a metal that can be used anytime, anywhere without any involvement of electronics and electricity. Whereas Bitcoin requires all of such stuff like Electricity, Computer, Internet, Blockchain.
(iii) Gold is one of the most liquid assets that is traded daily in well-known exchanges all over the world. According to a report of London Bullion Market Association, $18 billion worth of Gold is traded daily in London only. Bitcoin is also growing at fast pace, yet cannot reach Gold.
Along with differences stated above, Bitcoin and Gold are similar in many ways such as both have a limited supply. They are decentralized and carry anonymity. Both are accepted worldwide 24/7 and are a safe place to invest money.
Nevertheless, in this era, Bitcoin and other cryptocurrencies are more attractive for investors. Gold has only increased by 10% in 2017. Meanwhile, Bitcoin increased by 300%. This is also evident from social media which is nowadays bursting with advertisements, videos, analysis, opinions about cryptocurrencies trading and investment. Finding such content for Gold is hard to impossible.
Thanks for the brief but interesting post. You make some good points that are essential in understanding these two alternatives to valueless fiat currency.
While the price of bitcoin has surpassed that of gold, and may continue to exceed the price of all precious metals, there are many factors to take into account when considering the value of precious metals.
While gold has some uses as a practical metal, silver has many more uses, and there is much demand for silver for use in phones, solar panels and more.
Fiat money will be replaced ... soon. Whether it is replaced by precious metals or by cryptocurrencies is hardly an issue. The days of fiat money are numbered.
Fiat money should be replaced but governments are a barrier to this change. Recently this is what countries like China, Russia, and South Korea are trying to do. Governments are backed by Bankers who have their vested interests with the fiat money system.
$18 billion worth of gold traded a day in London? That's crazy.
I really liked your post, it was original and I have never seen anyone compare gold to Bitcoin before. Good job :)
Thanks a lot for your appreciation.
Yes, I was also amazed at reading this huge figure in LBMA report.
Very interesting, good post and I like, hopefully the next post better with a more perfect idea. follow me @pn09s, Upvote and give a positive comment for me.
https://steemit.com/life/@pn09s/sanger-20171011t13228688z
You Are An Excellent Steemian. This post has received a 50.00 % upvote from @steemthat Return the favor and SteemThat Person Back: @zeeshantaj.
.
Please Upvote This Comment To Help Me Grow!
img credz: pixabay.com
Nice, you got a 4.7% @minnowbooster upgoat, thanks to @zeeshantaj
Want a boost? Minnowbooster's got your back!
The @OriginalWorks bot has determined this post by @zeeshantaj to be original material and upvoted it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
To enter this post into the daily RESTEEM contest, upvote this comment! The user with the most upvotes on their @OriginalWorks comment will win!
For more information, Click Here!
Special thanks to @reggaemuffin for being a supporter! Vote him as a witness to help make Steemit a better place!
@minnowpond1 has voted on behalf of @minnowpond. If you would like to recieve upvotes from minnowponds team on all your posts, simply FOLLOW @minnowpond.
This post was resteemed by @resteembot!
Good Luck!
Curious? Check out:
The @resteembot users are a small but growing community.
Check out the other resteemed posts in resteembot's feed.
Some of them are truly great.
Whatever @resteembot resteems, I resteem too!
I am a new, simple to use and cheap resteeming bot
I will automatically resteem posts resteemed by @resteembot until 2017-10-15 00:00:01 +00:00
If you want to read more about me, read my introduction post.