bitcoin and gold

Bitcoin and Gold: The Differences and Similarities

Bitcoin and Gold. There’s been a long time discussion in the finance community concerning the differences and similarities between gold and bitcoin- digital gold.

Most Financial analysts and investors are interested in knowing which of these two would be the better investment and bring the highest return.

To end this discussion or perhaps join the discussion, there’s a need to look into the history of each of these gems, and understand how they’ve evolved over the years.

Gold was the first to be discovered between the two, it has existed for over 2000 years and has proven to be a valuable asset, and a safe haven when it comes to investment. Gold’s price has risen over the years, as at April 2020 an ounce of gold is worth $1700 USD.

Another significant importance of gold is that it can be processed into different forms, jewellery, coinage and other antiques. This makes it easy to transact, transport and acquire.

The supply of gold has really been affected by the rigorous techniques involved in its mining and processing, that irrespective of the amount of demand, the level of supply doesn’t increase.

Bitcoin in the other vein only came to be in 2009, when the first sets of the cryptocurrency were mined by its virtual inventor Nakamoto.

The digital gold as most analyst loves to call it has also evolved over the years. In 2009 when it was first created, 1BTC sold for $11 USD. As at April 2020, 1BTC is worth $6800 USD. This shows that bitcoin is ready to take gold’s place.

Most investors are now expending their wealth on bitcoin acquisition since the cryptocurrency has proven to be a valuable asset and a safe haven investment as well.

Bitcoin in contrast to gold is a digital creation, not a tangible gem. Its supply has always been lower than the level of demand, just like gold, but different from gold, its mining is done every 10 minutes by miners who add transaction records, this forms the bitcoin blockchain.

It’s really a difficult decision to make when it comes to choosing which of these two to invest on, as both have proven to be worthy investments, and are expected to keep that eulogy.

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