Bitcoin was established to compete with the US dollar. Many cryptocurrency supporters believe it will be the next gold. For decades, gold enthusiasts have extolled the rich yellow metal as the ideal “store of wealth,” arguing that it shields their investments from inflation’s corrosive effects. The Bitcoin bugs have made their appearance.
In recent months, many cryptocurrency supporters, like billionaire Mark Cuban, have maintained that digital currency can keep up with rising prices better than gold. They claim that because it operates outside of the regular financial system, it will become even more detached from the dollar and other mainstream assets.
Because Bitcoin is digital, it offers several benefits such as needing no storage space, no insurance costs and being freely transmitted electronically over any distance. Bitcoin is likely to fulfill a function that real gold cannot as we get closer to the metaverse.
Bitcoin’s value has increased by 2 million percent in the last decade, making it a better investment. Opponents of bitcoin, on the other hand, might argue that tulip bulbs used to function similarly.
Gold vs. Bitcoin
Some investors regard Bitcoin as a gold alternative, according to Jerome Powell. But he cautioned that cryptocurrencies as a store of wealth have one flaw: their volatility.
“A more conventional store of value, such as gold and other precious metals, isn’t nearly as volatile as Bitcoin,”
” nor could they ever feasibly go to near zero in terms of value, as cryptocurrencies may,”
So, Nicholas Creel, a corporate law professor at Georgia College and State University says.
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