Many people compare Bitcoin to gold. Moreover, they call it "digital gold". This made me wonder: what if someday crypto becomes more valuable than gold? How will the world change then?
In my opinion, it would change a lot.
The history of gold is very long. People buy it because it is considered something reliable and valuable. Gold was trusted by our ancestors, our parents and it is still trusted by investors.
However, this cannot be said about crypto.
Cryptocurrencies are new compared to gold and some people doubt about its safety. There are many debates on the topic whether cryptocurrency is the future of money or it is only a fashion trend. This makes the question so intriguing.
If someday cryptocurrency becomes more valuable than gold, it will show that more people around the globe start trusting cryptocurrencies.
Companies may decide to store some money in Bitcoin. Governments may introduce cryptocurrency laws and regulations and people may start paying for goods with cryptocurrency as easy as with a debit card.
Nevertheless, it does not mean that gold will lose all its importance.
Gold is used in various spheres and there are lots of industries which need it. In my opinion, it will continue to be valuable even when cryptocurrency gets more popular.
For sure, I do not consider that the situation should become the matter of rivalry between two.
In my opinion, cryptocurrency does not need to win over gold. Both can coexist in the world of investments.
On one hand, some people like to feel that the asset they buy is physically present. On the other hand, other people feel comfortable when dealing with digital assets.
One more lesson which technology teaches us is that it is constantly changing people's perceptions. Some years ago people did not want to use online bank accounts. Nowadays, we all use them without any doubts.
Perhaps, cryptocurrency will change people's perception in the similar way.
Or it won't. The fact is that nobody knows this for sure. For now, I am not going to try to predict what will happen with crypto. Instead of it, I prefer to study the technology, analyze all the risks and take decisions based on this information.
Why? Because in my opinion the best investment is the one which you understand.
