Is bitcoin attaining the 'gold' figure?

Is bitcoin attaining the 'gold' figure?

By Dzoelx | Scripts | 28 Oct 2020


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As a newbie in the crypto space and before you grasped the concept of blockchain technology, you probably already regard bitcoin as the ‘digital gold’. Making cryptocurrencies tradable and integrating them on exchange platforms similar to that of digitized gold sparked off the long-lasting comparison between gold, bitcoin and cryptocurrencies at large. Unarguably, bitcoin is at the helm of this comparison.

In a previous article, I reiterated the disparity between bitcoin and normal gold;

Just a minute, it all seems we have deviated a bit from the initial idea and this deviation have grown over time, while comparisons could be a very interesting exercise, it is even more relevant when there exist some close similarities between the concepts being compared. If we haven’t deviated from the initial idea or if we take some minutes mull over these two concepts, we will realize the huge disparity between gold and bitcoin and why comparing these two seems a bit dumb.

Bitcoin (and most other cryptocurrencies) represents an offset in contemporary financial and administrational technology developed by individuals who seek to change the way things are done in the financial sector, administrational sector and a host of other sectors applicable to life. Blockchain technology which powers cryptocurrencies presents a distributed ledger system with an enhanced level of transparency which hopes to decentralize some decision-making process, shift the power to the majority and as well enhance productivity in any area where they are applied.

In my opinion, comparing a technological revolution with a luxurious metal which is almost as old as man himself will go down as one of the dumbest comparisons of our contemporary time and an exercise which will go on for a long time without any tangible yield.

However, Bitcoin’s technology makes it a store of value…principally. Bitcoin being stuck in a rather archaic technology remains the major reason I would tip ethereum and other ambitious ‘shitcoins’ over it.

Well, I guess we can’t always be right and this time around, bitcoin maximalists’ biggest propaganda is becoming a reality…

Jack Dorsey’s square capital announced they had invested $50 million into bitcoin. Dorsey who has always been open about his love for the ‘alpha’ cryptocurrency described bitcoin as an ‘instrument of economic empowerment’. This came just days before the world’s largest payment company – PayPal announced they are making bitcoin available to the over 350 million users and merchants via their cryptocurrency wallet.

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Square capital’s investment in bitcoin was privileged enough to make the news, but a good number of companies are converting a substantial amount into bitcoin as it continues to grow into the ‘store of value’ we teased it to be.

In a similar but less popular news; Mode Global Holdings invested has 10% of its cash reserves into Bitcoin, this amounts to approximately $815,000 (about 66.7 BTC at the time of exchange). Mode Global Holdings thus becomes the first publicly traded company in the UK to make Bitcoin a part of its investment strategy.

Rothschild Investment Corporation is also rumored to have over 230 Bitcoins in its portfolio. Fact is, firms invested in bitcoin are actually way greater than the recorded number. Investors’ fate in bitcoin grows by the day and despite cryptocurrency’s notable volatility, they are no longer ‘scared’ to move their funds into bitcoin. This number is even expected to get larger.

Altcoin Investors put their capital in altcoins with hope that a technological or marketing breakthrough by the project drives the value up and yields them profit. Decent altcoin projects have done well as regards this. Many altcoins are more advanced technologically than bitcoin; however, they are yet to achieve the reputation of a ‘store of value’, an image which bitcoin portrays comfortably.

Gold or bitcoin? A random investor will have a hard time making a choice. A smart investor like Jack Dorsey would easily throw some $50 million into the digital gold. Investors like Jack are on the rise. The ancient gold will always remain popular amongst the older investors, as old as Peter Schiff…lol.

Times are changing, the new age sees bitcoin as the future, real gold is pretty much outdated. Altcoins retain their image as the technological ‘advancers’ while bitcoin continues its journey towards attaining that ‘digital gold’ figure.


Dzoelx
Dzoelx

Freelance writer| Digital marketer| Web & mobile designer and developer | Follow me on medium: https://joelagbo.medium.com/


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