Bitcoin Sovereignty Explains Its Essential Distinction From Gold, Silver

There are good reasons to worry about the current fiscal and monetary stimulus in the current economic landscape. For starters, money supply is growing at its fastest pace since World War II, and there have only been a few times that money supply growth has outpaced real output growth over a 5-year period .

Global economic uncertainty is at its peak and if central banks are unable to lead to monetary deterioration, other inflationary forces could intervene to stimulate demand for valuable storage assets such as Bitcoin . Now the question is, are we looking at the bad features of   Bitcoin  , which is driving market affinity?

Bitcoin sovereignty and its secular environment 

For a minute, if the comparison of Bitcoin with gold and silver is abandoned, it is important to understand that the largest digital asset is not touted to improve its purchasing power only on the basis of extreme volatility and popular price bubbles. The main difference between Bitcoin and other "politically neutral assets" is its sovereign nature and secular landscape.

The recent Messari report suggested that Bitcoin's market potential is revolutionary because for the first time an asset was created on a computer-based sovereign network state. From a fundamental point of view, it is quite precise.

Now, the concept of sovereignty underpins many important properties that have made   Bitcoin  . The asset is the only monetary asset in the world with an absolute scarcity and this particular characteristic is ensured by a global network of various participants who execute complete Bitcoin nodes .

The second part of its sovereignty resides in its blockchain, which serves and acts as a transparent, incorruptible and distributed global registry, used for the transfer and storage of value, and in addition, it is politically intact.

Unlike other fiduciary systems at the moment, it is impossible to restrict the transfer of value on Bitcoin , regardless of the type of geopolitical tensions around the whole economy.

Now, compared to other valuable storage assets like gold and silver which can be discussed under the same set of characteristics, it is crucial to note that these products do not share the same portability factor. Unlike monetary metals like gold and silver, bitcoins can be sent around the world in a matter of hours and can be stored securely by individuals with just a start phrase.

Finally, the report adds,

Bitcoin also has many secular winds in its favor, such as the next digitization of money and the coming to power of the younger generations. The global economy has gone digital for years, but the monetary system has remained largely the same throughout this period. "

While it is extremely difficult to predict the near term future of Bitcoin price volatility , it will be difficult to deny the solid fundamentals and resilience of  Bitcoin  in the face of the current economic crisis.

At the time of this writing, Bitcoin was trading at $ 9,183, with a trading volume of $ 24.4 billion over 24 hours.

Source: Coinstats

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