Bitcoin vs. gold is a cats and dogs argument. It’s undeniable that gold has its value not to mention the regal feeling it brings when you own a few ounces. But as much as it’s everyone’s dream to own gold, it’s not the wisest choice.
Yes, BitGold is on the rise. This platform will allow you to withdraw actual gold and pay as if you’re swiping credit cards. Sure, it will give you the feeling of possessing a fortune but only inflation knows when its value will start turning into dust within your hands.
If you’re going to ask me what I’m going to choose between the two, it will definitely be Bitcoin. Here are 15 of my hundreds of reasons why I prefer to invest in this digital currency.
1. Overproduction will never be an issue with Bitcoin
Bitcoin’s market cap is set at 21 million units, no more, no less. This will ensure investors that the digital currency wouldn’t be prone to overproduction that will result to value decline. From an investor’s point of view, this is the main problem of gold.
Inflation pressure can send gold miners and producers to sell more units since there’s no set limit for this. As long as the soil is rich with gold, producers can continuously release amounts. When there’s a large surplus of gold in the market, it’s price will suffer the blow.
2. Enthusiasm for Bitcoin has never been this high
Bitcoin vs. gold? Right now, Bitcoin trades strongly at more than $5,000. More investors are excited about this spike and they even forecast the currency reaching the $10,000 mark. Anyway, it’s fair to state that gold has its own share of charm for investors, but never on par with how Bitcoin lures speculators.
This enthusiasm is despite the scandals Bitcoin has been in the past. Every day, ‘Big Daddy’ is gaining traction. Though it requires a lot of technicality to mine, many geeks are taking the challenge of finding the remaining 20% in the realms of mathematical calculations.
3. Lower transaction fees
If you’re wiring money to another country, you’ll surely be charged with a hefty fee. With Bitcoin, transaction fees are lower and fixed wherever you are transferring it. You don’t have to declare it when you’re going overseas. It’s like bringing money with you without the physical existence.
You can transact with $10 or $10,000 and have the same transaction fees if you have the same amount of data. With gold, the more you transfer, the more you’re going to pay in transfer fees. God knows how much-hidden charges there is when purchasing using fiat money or gold.
4. Bitcoin vs. gold: Bitcoin offers less fraud
Every transaction in Bitcoin is recorded in a ledger-like blockchain technology. This ensures that all movement in the Bitcoin world will be tracked and identified. So how come the Silk Road prospered? Like physical money, Bitcoin can be used in unscrupulous acts. But the advantage here is that once someone raised a red flag, the ledger can be reviewed and the transaction can be traced.
This is an advantage over gold. When someone trades fake gold and you pay in cash, you don’t have any way to trace it in the web.
5. Bitcoins are easier to carry
Can you imagine bringing $100,000 worth of gold in your pocket? If you’re walking in the airport, you’ll be jailed for not declaring such sums of money. Aside from being bulky, you’ll have to go through the hassle of transporting it. And if you have lots of gold, it’s never lightweight.
6. Bitcoin isn’t affected by market inflation
The main edge in the Bitcoin vs. gold argument is that Bitcoin isn’t directly affected by inflation. The price of every unit depends on the trend the investors and users make when they trade or buy. User activity governs the price along with other factors that trigger volatility.
The only way that actual market inflation will affect Bitcoin is when investors sell their assets. But it can be a positive effect too as investors might likely focus on speculating when they experience the economic blow.
7. Convenience is the major edge
What if in the middle of the night, you want to transfer your money? With Bitcoin, you’ll just use your smartphone or computer, tinker with it, and everything is settled within 12 minutes. Wherever you are transferring in the world-except countries that banned it- the result is almost instant.
But if you have gold, you’ll need to wait until the next morning before you can drive it through to liquidate the funds.
8. Every Bitcoin unit is authentic
We had enough of fake gold bars and fake gold coins. The problem with this means of payment is that an individual with the knowledge to melt metals can easily produce fake versions. Though this is a widespread scheme, many buyers are still caught in the trap.
This is why I choose Bitcoin in the Bitcoin vs. gold argument. Every transaction is recorded in a ledger that almost no one can get away with crimes no matter how hard they hide it. Also, no one can produce fake Bitcoins. Even the most genius cryptographer won’t be able to do that.
9. Less storage cost
If you have gold, you’ll need to buy a vault or deposit it in a bank for safekeeping. This would entail high costs and inconvenience. What if you suddenly need it? This is where Bitcoin has an edge. Your digital currency can stay in a software and will only eat up micro spaces on your device.
If that’s not enough, transporting Bitcoins will never be an issue. You can buy a hardware wallet and you can store millions of dollars on it without weighing even a kilo. A decent hardware wallet costs around $150 and can store as many as 100 wallets depending on the brand.
10. Bitcoin is highly divisible
You can receive Bitcoin in the smallest denomination you can think of. You can be paid about $0.00001 of Bitcoins but you can never chop a piece of gold of that amount. If you can, chances are you’re going to misplace it for being so tiny. Gold dust isn’t a good thing if you’re not keeping it well. Bitcoin dust is the best.
The smallest amount of gold easily available is 0.05 ounce that is equivalent to approximately $90. For Bitcoin, the smallest denomination is 0.00000001 BTC. So, Bitcoin vs. gold? The virtual currency has the edge.
11. Higher gains
Nothing beats Bitcoin for having the highest returns in the currency aspect. But before an investor can have substantial gains, he needs to engage in an equally risky speculating. This isn’t the case with gold as you need to wait before it starts to appreciate in the market.
Investing in Bitcoins will also rid you of guilt that gold gives. Gold mining has long been under scrutiny because of the environmental damage it causes. Mercury contamination is one of the main dangers of gold mining.
12. No institution can manipulate Bitcoin’s price
Bitcoin exists in a decentralized blockchain technology where neither government nor private institutions can manipulate its value, storage, or maintenance. Users and investors will be those who can affect the price of it. Most federal rules about money don’t apply on Bitcoins except for tax laws.
With gold, banks and financial bureaus have a say on the value and restrictions with possessing gold. Banks may also charge you a pile of fees for storage or transfer of gold.
13. You can sell Bitcoin anywhere and anytime you like
Even if you’re in the bathroom taking a dump or in bed half asleep, you can sell your Bitcoins. You just use an exchange platform and your life will be as easier as ever. If you want, you can even lend your Bitcoins to sites where they can grow it and give you interest shares. This is the upper hand in the Bitcoin vs. gold argument.
But if you have gold, you will have to drive it to the bank and wait until all the paper works are settled before you can get your money. Not to mention limited banking hours, this is a pure hassle.
14. No intermediary involved
There are Bitcoin exchange sites that will serve as intermediaries, but if you wish to trade on your own, you are free to do so. Many sites will allow you to buy and sell BTC directly and with no service fees. This is a big deal if you’re planning to save much of your assets.
Middlemen usually increase the cost of trade. Gold trading is notorious for this and you’ll likely be duped if you’re not careful. If you insist on using gold as your money, I will still recommend using BitGold for safety.
15. Financial freedom
Gold and other fiat currencies have controlled value. For every piece of gold, the government will have to regulate the distribution to avoid overproduction. But if you have Bitcoin, you’ll enjoy the financial freedom that even the government won’t control.
Bitcoin’s value is ever-changing, and right now, it’s experiencing one of its peaks. It can shoot up to $5,000 and spiral to $2,000. This gives investors the opportunity to make the most out of the dumps and pumps.
Bitcoin vs. gold? I can say that Bitcoin has an edge but I won’t deny that gold has its own roster of advantages. But if you’re looking for alternative currencies, you can never go wrong in Bitcoin. Like any other investment, BTC is risky. But once you weathered the crypto tides, you can earn a paycheck.