According to expressions of the founder of the Gemini Exchange, Tyler Winklevoss, the Bitcoin “it’s better gold than gold itself”. It is not a play on words, but, according to his judgment, cryptocurrency is the best store of value that has ever existed.
The role of haven of value that gold has historically fulfilled is now exercised by Bitcoin in a better way. And it is that the qualities of the cryptocurrency in terms of economy, security and speed, among others, are impossible to match on the part of the golden metal.
It should be noted that this is an open and heated debate. Proponents of gold argue that all the “stores of value” that have existed have collapsed and gold remains. The same will happen, they consider, with cryptocurrencies.
Is Bitcoin Better Than Gold?
For Tyler Winklevoss, the answer is a definite yes. In his account on the social network Twitter, he expressed his opinion on this issue. “Bitcoin is better to be gold than gold, and I do not mean only incrementally, but an order of magnitude 10 times greater”, He sentenced.
The push of the pioneering cryptocurrency has been such that since its inception just over 10 years ago, its value has been constantly increasing. The record price of it has been broken over and over again and everything indicates that this trend to appreciate will continue.
This has allowed the holding to be one of the favorite decisions of investors, who see Bitcoin as a better store of value than gold itself. As is known, for centuries the precious metal has unquestionably fulfilled this role.
However, now cryptocurrencies, with their novel technology, seem to challenge gold. With the arrival of a new digital age, gold metal seems not to fit in with new infrastructures.
A competition that shouldn’t exist
As outlined above, there is great competition between gold advocates and Bitcoin enthusiasts over which of the two is the better store of value. However, for many others this competition should not exist.
One of these is alias NebraskaGooner, a cryptocurrency trader quoted by the Cointelegraph portal. For him, both gold and Bitcoin are stores of value and according to the investors’ choice, one or the other is used.
Clearly, Winklevoss disagrees with the latter and shows details of Bitcoin’s supposed superiority over gold. According to a graph he posted on his account, in 7 safe haven categories, Bitcoin dominates in 6 compared to gold.
The area where gold outperforms cryptocurrency is in market capitalization, with $ 9 trillion USD. In this sense, Bitcoin is totally overshadowed with a capitalization of about $ 200 billion USD.
In the rest of the categories such as scarcity, durability, portability, divisibility, storage and difficulty to be counterfeited, Bitcoin clearly outperforms gold.
Why is this cryptocurrency a store of value?
Although Bitcoin advocates have been claiming for years that their digital currency is better than gold, doubts have always surfaced. It wasn’t until 2020, in the wake of the pandemic and Bitcoin’s impressive recovery after the first hit, that dozens of investors began to act.
Big investment individuals like Tudor Jones or other professional Wall Street investors have started buying Bitcoin “en masse.” The price of the coin has maintained consistency above $ 10 thousand USD.
All this leaves open the option for those who wish to use this cryptocurrency as a refuge or store of value.
Data to take into consideration
- The market capitalization of Bitcoin is about $ 200 billion US dollars. While that of gold is $ 9 trillion in this same monetary denomination.
- At the time of writing, the price of Bitcoin is $ 10,500 USD per coin.
- Following the coronavirus pandemic, the size of institutional investors in Bitcoin has exploded.
- Another aspect that drives the idea of Bitcoin as a better store of value than gold, is the possible inflation rate of the USD.
The information in this content has been extracted from reliable sources detailed below.:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: CoinTelegraph.com.