Since the early days of the economy, gold has always been a valuable asset. To this day, gold is always towards the top of lists of the greatest value when it comes to commodities trading.
But, as we move into a digital age that relies less on the traditional methods, could gold be toppled as our primary source of value? Bitcoin, along with other cryptocurrencies, has gained tremendous traction over the past few years. What once could have bought two pizzas ($30) would now be worth $81.94 million. What are the primary differences between Bitcoin and gold, and which is likely to propel our financial sectors forwards in years to come?
What Benefits Does Gold Bring?
Gold has been the formulation of worldwide economies for centuries. Although many don’t use the gold standard as a way of tying their currency to a fixed equivalent of gold, the precious metal continues to retain its high value. Bitcoin, on the other hand, could be classed as far more volatile. With around 65% of Bitcoin already mined, there is a finite amount, which could be hoarded as a long-term investment, whereas gold is more likely to be exchanged. Indeed, gold is a hedge against economic uncertainty. Those wanting to get into commodities trading are often advised to choose gold as its stable market value and various means of getting into trading can provide opportunities and allow a beginner to advance in their trading career. But has gold finally found a worthy adversary as the most valuable commodity?
Could Bitcoin Overtake Gold?
Bitcoin is volatile, there is no escaping that
, but the uses and development of the blockchain technology are also an investment in the future to see exactly what can be done. Bitcoin forms the building blocks of cryptocurrency trading and many other digital coins base their value around Bitcoin. The applications for the blockchain technology are growing and are tied to advances elsewhere in technology, so much so that traditional methods are being abandoned in the way of what the future could hold. Plus, there are easy ways to get into the game if you wanted to trade Bitcoin, which involves less capital up front. The opportunities for trading Bitcoin are greater and the volatility of the market could work in your favour in the long run, especially considering how valueless Bitcoin was just a decade ago.
While gold may be traditionally what we value the highest, things are changing with what the digital world can offer. Compared to the tech-forward nature of Bitcoin and the growing prevalence of Bitcoin trading, gold seems outdated. Bitcoin – and the cryptocurrencies that follow it, including Ethereum and Ripple – offers a lifeline to the future and to ways of doing things that are solely digital. The decentralized nature of the payment method and the security and privacy that comes with the anonymity means that Bitcoin presents itself as a very worthy adversary to gold and the values of the past. Time will tell whether Bitcoin eventually surpasses gold in terms of value, both tangibly and conceptually.
