Bitcoin cements its haven asset reputation. Is the “means of exchange” narrative still alive?
The post Bitcoin cements its haven asset reputation. Is the “means of exchange” narrative still alive? appeared on BitcoinEthereumNews.com. Bitcoin has always been compared to gold. As time went by, the safe haven reputation of Bitcoin only strengthened. However, Bitcoin was conceived as an alternative cash system, and Bitcoin enthusiasts still greet businesses that have started accepting bitcoins. What are the chances that Bitcoin will eventually become a regular means of exchange? Safe haven assets: Bitcoin and gold Gold has been recognized as a safe haven for a long time, meaning that it successfully preserves value in times of financial turbulence, serving as a strong hedge against inflation. Bitcoin, sometimes referred to as digital gold, is something new in this regard. Multiple investors and financial experts went so far as to call Bitcoin a better version of gold. Both assets are scarce and hard to produce. Gold is finite, and Bitcoin has a hard cap of 21 million, most of which is already in circulation and around three million are lost forever. As for the advantages of Bitcoin over gold, cryptocurrency is extremely easy to manage. Gold bars need special storage. Maintenance of gold bars is demanding and costly. More than that, gold needs space. Bitcoin is much more comfortable as you may always have it with you as long as you obtain a seed phrase of your wallet or private and public keys. Bitcoin can be stored in a trustless manner. For gold, you will probably have to trust professionals. Sending gold is way harder and more expensive than sending a Bitcoin transaction. Another characteristic that makes Bitcoin way different from gold is value dynamics. Bitcoin has an element of gambling to it, as its price is pretty volatile. However, as institutional investors and governments are joining the hunt for Bitcoin, the price stabilizes without losing its upward direction. Many say that this cycle will be different from…
The post Bitcoin cements its haven asset reputation. Is the “means of exchange” narrative still alive? appeared on BitcoinEthereumNews.com.
Bitcoin has always been compared to gold. As time went by, the safe haven reputation of Bitcoin only strengthened. However, Bitcoin was conceived as an alternative cash system, and Bitcoin enthusiasts still greet businesses that have started accepting bitcoins. What are the chances that Bitcoin will eventually become a regular means of exchange? Safe haven assets: Bitcoin and gold Gold has been recognized as a safe haven for a long time, meaning that it successfully preserves value in times of financial turbulence, serving as a strong hedge against inflation. Bitcoin, sometimes referred to as digital gold, is something new in this regard. Multiple investors and financial experts went so far as to call Bitcoin a better version of gold. Both assets are scarce and hard to produce. Gold is finite, and Bitcoin has a hard cap of 21 million, most of which is already in circulation and around three million are lost forever. As for the advantages of Bitcoin over gold, cryptocurrency is extremely easy to manage. Gold bars need special storage. Maintenance of gold bars is demanding and costly. More than that, gold needs space. Bitcoin is much more comfortable as you may always have it with you as long as you obtain a seed phrase of your wallet or private and public keys. Bitcoin can be stored in a trustless manner. For gold, you will probably have to trust professionals. Sending gold is way harder and more expensive than sending a Bitcoin transaction. Another characteristic that makes Bitcoin way different from gold is value dynamics. Bitcoin has an element of gambling to it, as its price is pretty volatile. However, as institutional investors and governments are joining the hunt for Bitcoin, the price stabilizes without losing its upward direction. Many say that this cycle will be different from…
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