Bitcoin’s value proposition is its scarcity - 21 million and that's it. Nobody is able to water down the money in circulation (creating another million or a couple) and make profit from it. Because of its scarcity, Bitcoin is arguably much better store of value, than gold. I'll explain.
Let's compare Bitcoin and gold
- Gold is expensive to store securely - heavy, it takes up space.
- Gold is extremely expensive and slow to transport securely, especially large amounts - heavy, it takes up space.
- You can't walk very far carrying a lot of gold. You can't swim at all with more than a few coins of gold.
- Gold can be confiscated - it has already been confiscated by the US government. 1933 Executive Order 6102
- Pirates, highway robbers and others can merely kill you and take the gold you had on you.
- Currently really hot news in China. Gold coated tungsten bars. Tungsten's density is very close to that of gold. It requires special equipment and know-how to detect gold-coated tungsten. 83 tons of fake, gold coated tungsten bars found in China, used as collateral found just a few days ago.
...gold has quite a few issues but it is still better than any fiat currency.
Bitcoin on the other hand
- Bitcoin is easy and inexpensive to store securely - hardware wallets, piece of paper, stamped metal sheet or just simple washers in your garage, etc.
- Weight of Bitcoin is zero - plus the storage.
- Bitcoin cannot be confiscated or stolen by robbers, they simply won't know you own any unless you tell them. Even if they kill you, they cannot take your Bitcoin.
- It's impossible to create fake Bitcoin and sell it on any exchange.
- Bitcoin can be taken through a border or airport without anyone knowing. Think of people feeing a dictator country.
- Bitcoin is cheap to transport, no need for special equipment or guards even if you're moving millions.
- Being a refuge and walking through a few countries with Bitcoin is much easier than carrying gold.
- Price of Bitcoin is historically getting higher than gold - https://www.buybitcoinworldwide.com/bitcoin-price-in-gold/
- Bitcoin can be sent across the Internet, try that with a golden bar.
- You can pay with Bitcoin in much more establishments than with gold.
I personally think, Bitcoin is much better investment as well as a store of value. I understand, gold is here for thousands years and Bitcoin is just a baby but the baby is going to be very loud, pretty soon.
Also, buying Bitcoin is the most asymmetric bet you can make. The upside is truly unbounded (look at the past - zoom out) yet the most you can lose is 1X your investment in the caase of Bitcoin hitting zero. And if it'll hit zero, how many of us would "buy" it all? Pushing the price up again :D There is always more gold to mine, but there will never be more than 21 million Bitcoin.
No matter if you're holding Bitcoin or gold only, both are much better choice than any fiat currency.
Check my previous posts, please:
Earnbitcoin - Legit or Scam? Are you getting free 10,000 sats or is it just a number on the screen?
Bitcoin in the time of world financial downturn.
Guide how to earn Bitcoin with (almost) NO skills required.
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