Bitcoiners often compare the cryptocurrency with gold, pointing out that its supply is also limited, that it is not an obligation and that it has the virtues of anonymity.
They go on to explain that, unlike gold, Bitcoin transactions do not entail the need to move physical gold, insure it, and store it. In addition, unlike gold, Bitcoin is not subject to movement tax in different countries, such as India’s import duties on gold.
This gives Bitcoin all the benefits in terms of ease of trading and transfer of funds. Holding gold in this way is not anonymous. However Bitcoin can be used for bad purposes such as the financing of criminal activities, terrorism and any other activities of this category. This is due to the anonymity that Bitcoin enjoys.
Finally, of course, there is the security aspect, as graphically demonstrated by the recent theft by hackers of nearly $ 500 million from Coincheck, the Japanese currency exchange. This comes four years after the implosion of another Japanese cryptocurrency exchange, Mt. Gox.
Unlike Bitcoin, which is not yet ten years old, gold has been a valuable treasure for more than 4,000 years. As observers like to point out, almost all the gold that has been mined is still present, as it does not rust, dissolve or decompose. It can be used in many ways, including dentistry, industrial use (especially electronics), and of course jewelry.
Perhaps most importantly, gold is nobody’s obligation and no government has the ability to control its supply. Showing the erosion of the value of so-called fiat currencies (that is, printed money issued by governments), gold is now worth US $ 1,350 per ounce.
The attractions towards an asset that seems to mimic many of the attributes of gold is understandable, and the blockchain is a technology that will undoubtedly be of great importance in the future. How long this process will take and whether Bitcoin or its rivals will still exist when it does so is very difficult to predict.
Rather than consider it a dangerous rival, it makes sense to stick to gold, the original, historical and proven store of value. Its offer cannot change abruptly and it is supported by central banks, which still retain much of their gold reserves.