Well, let’s jump straight into business.
Lmao. Hello to you too.
Today, I want to talk to you about how Gold will destroy Bitcoin, your shiny toy.
Destroy? Obviously, you kid.
I’m not joking. Gold has been around for longer than Bitcoin, so I know what I’m saying.
You’re right about gold’s longevity but like anything else in life, change is constant. Bitcoin provides an upgrade to gold, and this is why it is called “digital gold” by many economists and financial experts.
Bitcoin allows you to digitally store and transfer value with minimal problems. The fact that it is a digital asset and gold is a physical asset provides a few benefits.
Like?
Ease of transfer for one.
It’s impossible to transfer gold through non-physical means, and this makes gold technologically redundant. You may have all the gold you need and still not be able to help someone in a different city — unless you convert it to fiat or crypto.
In contrast, with Bitcoin, all you need is to send the desired amount via the internet to the recipient’s wallet and they can use it to pay for goods and services in their city.
Should I clap for Bitcoin?
Lol.
Another advantage of Bitcoin is that it’s relatively less expensive to store safely compared to gold. Gold is vulnerable to theft and can also be misplaced. Furthermore, carrying or wearing a lot of Gold in the wrong place at the wrong time may even put your safety at risk. Bitcoin is digital money and you don’t need to store it in your house. You could own $1billion worth of Bitcoin and no one would know since all you need is an internet-enabled device to access your holdings.
Most people hold gold because of its investment value but Bitcoin is by far the better option. It is one of the best-performing assets in the history of man. Think about this, Bitcoin started selling at $0.08 in 2009 and at the time of writing is valued at $30,000. That is an increase of 38,000,000% in 13 years.
All of this has occurred with less than 5% of the world population holding Bitcoin. Now imagine what the value of Bitcoin will be when 50% of the world begins to use it. We are still in the early stages and some experts have suggested it could hit $500k per coin in 2030.
In a nutshell, you can’t say horses are a better option than cars because they’ve existed since the beginning of mankind. Hope you get the gist.
I still don’t understand why you push BTC when it hasn’t even suffered a major recession. For context, Gold has survived the falls of hundreds of governments and civilizations.
Lol, I don’t know where you get the notion that Bitcoin has not survived a major recession. Did you know that the price of Bitcoin fell by more than 70% in February 2018 from about $20,000 to around $4000? This major dip was called the crypto winter and many people thought that was the end of Bitcoin.
However, Bitcoin is not like other assets without relevant use cases. The beauty of Bitcoin lies in the fact that you can make cheap cross-border transactions without any restrictions from the government.
Slowly, more people looked beyond the crypto winter and recognized the benefits of Bitcoin. Bitcoin began to have more users than ever before and organizations started accepting it for payments.
The price of Bitcoin steadily increased and went on a bullish run in late 2020 — this is when the value of an asset increases exponentially. This carried over to 2021 when the value of 1 Bitcoin hit $60,000.
Bitcoin has already shown that it is here long-term and is capable of recovering from major market recession.
I hear you but the price of BTC is dipping. How sure are you that it will recover a second time?
The current Bitcoin dip is not as bad as what happened in 2018. Like any phase, it will end soon and the market will rebound. If you want more details on what is happening, you can read my thoughts from a previous episode.
Gold can be used/has been used as a currency. Sadly, I can’t say the same about your shiny toy.
Yes, gold was used as a currency 100 years ago, but who uses it as a legal tender in 2022?
In contrast, Bitcoin has been adopted by two countries — El Salvador and the Central African Republic. This means that you can spend Bitcoin to purchase goods and services in these nations similar to fiat currencies.
Why have these countries decided to adopt Bitcoin and not gold?
I suspect it’s for many reasons. Off the top of my head, I’ll say it’s because gold is a difficult asset to use for everyday transactions.
For example, you cannot easily offer change to someone with 10 grams of gold who wishes to buy a product that cost 1 gram of gold. To do this you would need to have the size of gold that equals 9 grams. With Bitcoin, this is easy as all you need is to transfer the exact amount of change required to the buyer who receives it in his wallet. Easy peasy!
Are you implying that gold is a useless asset?
I would not be so quick to dismiss one of the oldest forms of investment in today’s world. Gold has its benefits as it is tangible — It’s metal that can be held and seen in person.
Also, you don’t need any special financial qualifications to know that it is a valuable asset. Everyone knows Gold has value, and this makes it acceptable across different demographics and cultures. It has also stood the test of time. A gold ring or necklace that you wear today may have fragments of gold worn by someone born centuries ago.
Nevertheless, Bitcoin offers an upgrade to these qualities and more upside. I recently read an article which stated that over $100 million worth of crypto has been received by the Ukraine government as donations in the ongoing war with Russia.
A majority of the donations were in Bitcoin and this shows its value during war-time. It will almost be impossible to transfer gold during periods of war and attrition in a region compared to a digital asset like Bitcoin. Bitcoin also offers a better return on investment and its adoption is growing rapidly.
I still don’t believe you. Everyone knows that gold is very stable.
This is what gold maximalists — people that only believe in gold — love to say but it is simply not true. If you pull up a graph of gold on the internet you would see periods of steep price changes in the 80s, 90s and early 2000s.
In fact, if you bought gold in the early 1980s, you would not have made a profit today due to the depreciation that occurred at the time.
So let’s get the facts right, gold is like most investment assets and thrives on speculation. It may not be as volatile as Bitcoin, but it is not as stable as many make it seem.
But why should I trust an asset that the creator is anonymous?
Lol! Everyone knows that Bitcoin was created by an anonymous person called Satoshi Nakamoto. The beautiful thing about Bitcoin is that it stands on its own. It doesn’t need a founder.
The code is open to everyone and that’s the point. If we want to live in a world that is transparent and decentralized. We need a system that is not reliant on a human being or a set of human beings.
So it doesn’t matter who the creator was. All that matters is what the code enables and its use cases. Bitcoin is building a digital currency that anyone can spend and receive globally easily with cheap transaction fees.
Hmmm, interesting…but I hear more about Bitcoin scams than gold scams.
You should know that buying and holding Bitcoin is a very safe activity. But just like many technologies, there are many sides to it. I get phone calls almost every day from people pretending to be from my bank.
Scams are prevalent in all areas of our society, not just cryptocurrency. Unfortunately, it seems you’ve been brainwashed by headlines designed to make Bitcoin look bad.
Yes, there are scams in crypto but there are scams everywhere. So you can 100% invest in Bitcoin and be safe.
You can say what you want to about the media but Bitcoin mining is dangerous to the environment. So why invest in what destroys the environment?
This is another misconception that many people have about Bitcoin. Do you know that over half of the energy used to mine Bitcoin comes from renewable sources — Solar, Wind and Hydro energy.
Also, most Bitcoin mining farms are located in remote areas like villages so their activities are far away from major cities. More importantly, Bitcoin has a fixed amount of 21 million Bitcoins, of which over 18 million have been mined already.
Meanwhile, gold requires digging the ground or physically moving from one place to another. This takes its toll on the environment and you can read about the impact caused by excessive mining of gold in South Africa for context.
All these still feel like confirmation bias to me.
Hahaha. It’s fine. I wasn’t expecting you to change your mind. However, I hope it’s not too late when you do.
He who laughs last laughs best — while surrounded by gold
LOL!
