Will Bitcoin Become the New Gold for Cryptocurrency Age? (part 2)

3. Exchange and fee

In this case, Bitcoin has a number of advantages over gold. This is mainly because of the anonymous feature of the Blockchain technology. In some cases, however, this could encourage illegal activities. The fact that Bitcoin uses Blockchain technology makes it better in preventing fraudulent activities.

Blockchain records and permanently stores every single transaction in the system, making Bitcoin transfer much quicker and safer.

Transferring gold physically can be quite complicated and slow as compared to Bitcoin which is transferred online within a few seconds. In addition, the fees charged when exchanging Bitcoin are minuscule as compared to gold. This makes Bitcoin far way more attractive as a mode of exchange in remittance markets.

See also: Blockchain application in Finance

4. “Mining”

Yes, both Bitcoin and gold are “mined”. However, the process of mining is very different. Gold is mined physically from the earth while Bitcoin mining involves the use of powerful computer encryptions.

This fact means that both Bitcoin and gold are safe forms of currencies since they can’t be printed recklessly by central banks or any other entity.

5. Store of Value

Bitcoin can be used as a store of value in countries with uncontrolled and volatile currencies. For instance, in Venezuela, Bitcoin has been widely accepted by businesses for smaller transactions including buying food and movie tickets. This is a counteraction to the country’s increased inflation: around 2616%.

Gold seems to have retained its value for centuries. Gold coins that were used hundreds of years ago are still valuable today. Maybe it is due to the long history of gold, but it does not look like its value will disappear any time soon.

See also: Blockchain application in Transportation

In comparison, fiat currencies are at the mercy of the economy, big banks, and governments. No matter how much of a fiat currency you own (or how rich you are) if one of these three controls goes belly up, your worth does too. By owning gold or bitcoin, you are outside the reach of these controls, which makes them both so much more valuable than their worth lets on.

At the end of the day, many individuals and investors seem to like Bitcoin in the same way that people used to be intrigued by gold. The security, speed, transparency, and efficiency of Bitcoin systems are promising. Even in a massive global economic downturn, Bitcoin is most likely expected to thrive.