Bitcoin Is Superior To Gold

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Alexander Vasiliev is the co-founder and CCO of the global payment network Mercuryo.

Ever since bitcoin began to grow in popularity, many people have come to call it “digital gold.”

And for valid reasons.

While the cryptocurrency’s anonymous creator, Satoshi Nakamoto, originally intended bitcoin to function as a peer-to-peer (P2P) electronic cash system, BTC also possesses excellent store of value and safe-haven asset qualities.

Gold has similar store of value properties, with many conservative investors considering the precious metal one of the safest traditional investment instruments on the market. There’s also a popular belief that the financial instrument is a good inflation hedge.

However, numerous experts from the same group also criticize bitcoin for its lack of stability, often calling the cryptocurrency a bubble.

That said, such statements about gold and bitcoin don’t reflect the full truth.

Bitcoin Beats Gold in Terms of Purchasing Power

To see the entire picture, it’s essential to analyze gold and bitcoin in regard to how the two financial instruments perform in terms of inflation hedges, stores of value, and safe-haven assets.

According to the Bureau of Labor Statistics’ Consumer Price Index (CPI), the United States Dollar has lost 11% of its purchasing power due to inflation in the last five years.



Source link Bitcoin Magazine

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