Netizens have (and will probably continue) been arguing about which is better in the long-run, gold or bitcoin? Whether you are pro-bitcoin or pro-gold, there are obvious things of note for both sides. Each one has qualities that are both good and bad, which is why the argument exist in the first place. People want to know, whether one quality is worse than the other, which is quite difficult to say.
Points of Argument
- Ownership – When it comes to owning bitcoin and owning gold, there is an obvious difference. If you own, say a bar, of gold – that bar will always be worth something. When it comes to the market for precious metals, there will never be a moment where that gold will not be worth anything. Bitcoin on the other hand (no matter what anyone tells you) doesn’t exist in the real word. The only way you can say you own something with bitcoin, is if you use it to purchase something that exists. In that case you’re now in ownership of an object, and not exactly bitcoin.
- Universal Effect – This part is a bit easier to contend. When it comes to the universal worth of gold and bitcoin, there is an obvious difference. Gold is accepted all over the world as a viable way of payment. If you present a man with a gold nugget or gold bar, the likelihood of them accepting your trade is high. Bitcoin, on the other hand, is not something that is universal. Nor is it something that will be in the near future. If it manages to stay on top of the market for long, then perhaps… but for now Gold is the obvious winner.
- Volatility – The market for both gold and bitcoin is volatile. Bitcoin has risen quite a lot, but there’s a very real risk in its value going down up 50% in just a single day! The one thing about bitcoin however, is that there is a limited amount of it. This limit is what makes bitcoin so special. Because in this way, you’ll know there’s nothing happening behind the scenes. The market for gold is also interchangeable, but it’s not so bad. The rate of gold is pretty steady, and will probably remain as such.
- Risk – There are risks involved in both sides. For bitcoin, there is the ever present possibility of being hacked. The internet is a vulnerable place, and there are a lot of advancements that can lead to very risky dealings. Gold has risks involving thievery, whatever it is people will find a way to steal it. That’s just the way the world works.
Now, what can I conclude? I can conclude that Gold will remain a constant presence in today’s economy and into the future as well. As for bitcoin, it’s certainly making bounds and leaps over what people expected from it. Right now there’s a certain mentality in bitcoin about buying and selling it without actually using it, and there’s no telling on how that story will end. So we’ll just have to wait and see.