Although the volatile traits of bitcoin might not appear pleasing, if compared with gold, bitcoin is a much better store of value than gold. One can easily understand the strength and potential of bitcoin by noticing that bitcoin’s growth in 10 years was something that gold couldn’t attain even in 100 years.
A few months back, it was revealed that bitcoin has shown a 720,000,000% price surge since its inception whereas the gold only managed a 64 times increase in price since 1919. The stats speak for themselves as bitcoin which is often regarded as ‘digital gold’ outclasses gold, considered a safe haven for centuries. While talking to BlockPublisher, Stan Kladko, the co-founder of Skale Labs, said:
I think Bitcoin is the brand number one and it will stay, bitcoin will be used as gold to store value and it is perfect for this case because the acquisition fee for bitcoin is like 50 cents and people will be storing like tens of thousands and millions and billions of dollars.
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As gold is strongly regarded as a store of value and everything else is compared to gold for assessing if that asset is a store value, bitcoin has been compared to gold on numerous occasions by several people. In the past, even the Chairman of the Federal Reserve, Jerome Powell, admitted that bitcoin served as an alternative to gold. His exacts words were:
Almost no one uses bitcoin for payments, they use it more as an alternative to gold…It’s a speculative store of value.
Bitcoin launched over a decade ago is the world’s first cryptocurrency that is truly decentralized. While the price of bitcoin can’t be manipulated or controlled by authorities and governments, the limited supply of bitcoin ensures that bitcoin can’t be created as much as wished. Due to all these factors, bitcoin is free from inflation.
Unlike fiat currencies that lose value due to inflation, bitcoin is dependent on the fundamentals of supply and demand. Therefore, the price of bitcoin drops or falls only if there’s a change in its supply or demand. At the moment, the bitcoin market cap of a few hundred billion dollars is insignificant to gold’s trillion dollars worth market cap. Let’s see how the sentiment for digital gold evolves over time.
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