Gold Vs. Bitcoin: The Top 8 Reasons Why Bitcoin Is Better Than Gold

Gold Vs. Bitcoin

Gold versus bitcoin. Which one is the better option? Which one is the better investment? Which one has better utility long term? These are the questions that a lot of retail investors, hedge funds and banks are asking right now in 2021.

today we’re going to break down each trait of gold, bitcoin and the US dollar to see which of the three is the best use for the financial system in the future.

All three have their own traits of money and this is what makes each one unique and each one have pros and cons. Gold Vs. Bitcoin

Let’s not waste any time and let’s hop right in. While it’s not financial advice, I personally believe the price of bitcoin today is going to be significantly cheaper than it will be in the future, even, say, a year from now.

Fungibility

The first trait of money we have is fungibility, which is interchangeability. Does it make sense that gold is identified as gold, is $1 identified as a US dollar, and is $5 identified as a US dollar? Yes. Gold Vs. Bitcoin

Crypto is one bitcoin worth one bitcoin? Yes. We also see fungibility used in NFTs, which stands for nonfungible tokens, which basically means tokens that cannot be replicated easily or easily counterfeited essentially there’s another trait which is security, which cannot be counterfeited as well, which we’ll get to in a second for the sake of fungibility Gold, the dollar and crypto all have high fungibility, which makes them good uses for money.

Gold Vs. Bitcoin

Non-consumable(Gold Vs. Bitcoin)

Next Trait, we have non-consumables. Now, you might be like, what the hell? Obviously, they’re non-consumable.

No one’s going to eat gold unless they’re having like truffle gold ice cream or something like that. But for the most part, they’re not edible.

You obviously can’t eat bitcoin and you probably don’t want to eat the US dollar. You could eat it, people have done it, but you probably don’t want to do it.

All three of these are also highly non-consumable. They’re really not edible. They’re not meant to be eaten.

And the reason for this, and it sounds kind of crazy, but back in the day, people used food as money. Sometimes they would use like corn or another rare food that you could find. Gold Vs. Bitcoin

And the reason for that is because what is money, right? When you talk about it and you break it down, what makes for good money? These are the traits, and we’ll understand by the end of it why this makes for good money.

But let’s just say m&m was the form of currency that we used. Well, m&m might be great, they might be a rare thing, and they might be easily identified as m&m, but people might eat them because they’re edible and they’re yummy.

So for that reason, it’s probably not the best thing to use them as money, because people will just eat them. And that will ruin the value of the money because people consume them and they are now gone. Gold Vs. Bitcoin

So non-consumable, although it sounds kind of ridiculous, is a bare bones basic trait of money. All three of these pass the test on non-consumables as well.

Portability(Gold Vs. Bitcoin)

The next one is portability. If I’m walking around town and I want to buy something, or if I’m going to another town, or if I even want to go across the country or to another country, how easy is it to take my money with me? Going gold not that easy.

If you wanted to carry around a good amount of money, let’s say, I don’t know, a couple of $1,000, you don’t have to have a sizable nugget or brick of gold to bring around with you.

And that’s really heavy. So to be honest with you, gold is really not that portable. It’s moderate, but I would even say that it’s potentially low in some cases.

If you need to bring a considerable amount of money for a vacation, for example, if you wanted to go abroad and you needed $10,000 for your whole three-week stay at a vacation, bringing gold is probably not the first choice you’re going to make. The dollar, obviously, is the first choice a lot of people make.

That’s what’s been happening for years and years and years. It’s paper money. It’s easy to store in a wallet, it’s light, it’s not too heavy.

It’s easy to have a couple of $1,000 in a very small volume, space-wise, and bring it with you across the country. And lastly, crypto.

In the same way, you don’t even need to bring any physical things. All you need to bring is this. Any kind of portable electronic device.

Everyone’s got cell phones these days. Most countries have a lot of cell phones these days. Gold Vs. Bitcoin

Even places that don’t have internet actually do have cell phones a lot of the time, which is why bitcoin again, is also easily transferable, easily portable from place to place.

Durability(Gold Vs. Bitcoin)

The next trait is durability. Gold, obviously, as it is a precious metal, is highly durable. It’s very hard to break, it’s very hard to burn, it’s hard to melt, it’s hard to destroy. That makes it a good durability.

Fiat dollars is moderate because, like we just said, dollars being small, easy to transport, they are paper, they are easy to rip, they’re easy to burn, they’re easy to lose.

Honestly, crypto is also highly durable because guess what? It’s all here. And even if this gets destroyed, my crypto is safe as long as I have my keys. So I could burn this, I could throw this off a roof, I could get this stolen.

And at the end of the day, unless they have my keys, it doesn’t matter. It’s durable. No one can destroy it. It cannot be destroyed because the blockchain has all the history of where it’s been and it’s valid. And for that reason, it’s also durable.

Highly divisible(Gold Vs. Bitcoin)

The next trait is Highly divisible. And this one is an interesting One. Gold very difficult to divide. Think about how you want to split up Gold. If you have a gold bar that’s worth, I don’t know, $3,000? Gold Vs. Bitcoin

I’m not even sure what a Gold bar is worth These days because.I don’t own any gold. But if you wanted to divide that bar, how do you do that? Well, you can’t just chop it up. You can’t just split it, break it apart. Even melting it won’t really work.

The dollar is actually, I would say, probably a fair rating on moderate. Maybe even you could argue that it’s high.

Although you have preset denominations, right? You have a $1 bill, a five dollar bill, ten dollar bill, a $100 bill. So you have different forms and different versions.

It’s the same size, but they have different values. And for that way, it is divisible in some respect. But if you wanted to, say, take a $100 bill and split it into 520s, you’d have to go to a bank or go to someone else that has five twenty s to exchange and divide it. That can be kind of tds. And for that reason, it’s a moderate rating.

Crypto is super easy. One bitcoin is worth 100 million satoshi’s. Now, it sounds insane. 100 million satoshis. It’s eight decimal places deep on each bitcoin.

And for that reason, even though it’s a little bit difficult if you say all I have, I want to give you 0001 bitcoin and that’s worth $10, that is a little difficult because it’s what, seven decimal places or whatever it is. Gold Vs. Bitcoin

That’s annoying. However, it is highly divisible, It is easy to divide a bitcoin into any number of 100 million. That’s very, very highly divisible.

And the best part is it’s all digital. So even if you don’t want to do that crazy math, it’s not hard to do. The platforms, exchanges and wallets have set up you.

All you need is a calculator, which you can also do right from your phone.

Secure(Gold Vs. Bitcoin)

Now, we’re running back into the fungible conversation here with Secure, which means it cannot be counterfeited, it cannot be faked.

Gold, I would say, is probably hard to fake. If you know what gold looks like, what feels like, and how heavy it actually is, it could be hard to fake.

However, there are a lot of metals that do seem a lot like gold, that could be painted gold and aren’t actually gold. Gold Vs. Bitcoin

And if you have a very small amount, like a piece of jewelry or an earring or something that’s plated in gold, it could be quite hard to tell that it actually is gold. And for that reason, it could be counterfeited easier than maybe something like a dollar, which is a little bit easier to tell.

Now, if you hold up a dollar bill, usually you can kind of tell when it’s fake. You can feel the difference between a dollar and a piece of paper or a counterfeit dollar.

But the real way you can tell about a dollar, if you hold it up to the light, you’ll actually see a little shadow of Benjamin Franklin‘s face inside the dollar, which you cannot see if it’s not by the light.

That’s one simple way to tell that a dollar is legitimate and it’s not a counterfeit dollar because it’s very hard to watermark. With bitcoin, however, everything is backed by the blockchain.

Everyone can see what’s ever happened on the blockchain, where each bitcoin is and which wallet it’s gone to in its course of history. The same cannot be said for gold or for the dollars.

This dollar has probably been in so many different people’s hands that I will never know where it went. You’ll never know where it came from.

You never know if it was used for illegal activity or not because it’s been around, passed around, but it doesn’t have any kind of tracking device with it.

Bitcoin is different,Every single place the bitcoin that I own has been, I can find out. I can see which wallets it’s been to, who’s had it, for how long, and everything, all of it’s, secured, recognized, and most importantly, verified by the blockchain. So once again, bitcoin wins this category. Gold Vs. Bitcoin

What is bitcoin ? how it work

Easily transactable

The next trait is easily transactable. Gold, Absolutely not How often do you see people using gold to buy something? Almost never, because like we said before, it’s not very divisible and it’s not very portable.

So why would people carry it around and try to divide it up to pay for things?

It just would never work. The dollar, obviously, is the current form in which people pay for stuff, and it is high. It’s easily transactable. You can trade it, people know the value of it. You can even do it digitally on a credit card or a debit card.

And for that reason it’s worked for a very long time. Bitcoin is the same way, although I would argue that maybe it’s not as good as the dollar right now because the financial systems set up in place do not accept bitcoin the same way they accept credit cards, debit cards or cold, hard cash.

At some point this may change, but I think even though bitcoin is set out to be a currency and to be used for transactions, and it can be easily transactable,

I think bitcoin is shifting more towards a store of value, which is why the title of this article is bitcoin versus gold. Which one is the better store of value?

Scarcity(Gold Vs. Bitcoin)

The next trait is one of the most important traits in all of these traits scarcity, predictable supply. Gold Vs. Bitcoin

Now, gold itself is scarce. This is one of the reasons it makes for a great store of value and a great source of money. Regardless, the point here is we don’t know how much gold there actually is.

Yes, it’s scarce, yes, it’s hard to mine, but how much actually exists is unknown. Now, in the case of the US
Dollar, as you guys may or may not know, the amount of printed money has gone up astronomically in the last year.

The US Government has printed an absurd amount of money in stimulus relief packages. That has increased the overall amount of money in circulation by a significant amount in just the last year. And that means less scarcity, less value, because there’s so many dollars.

  1. How much is worth 1 Satoshi?

    1 Satoshi= 0.00000001 ฿

  2. How many dollars is 1 Satoshi?

    1 Satoshi = 0.0001694 USD

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