Both of these assets share some common characteristics that make them wise investments and depending on your overall investment strategy, you may find one option better suited to your needs.
However, enforcing a ban on either gold or Bitcoin would prove to be extremely difficult if not impossible.
Your favorite knock-off movie streaming site can continue to operate due to its decentralized nature.
For the sake of making the debate as balanced as possible, each asset will be judged on its capabilities in vital categories such as accessibility and fungibility.
The value of gold has steadily increased over the last 200 years with the precious metal at near all-time highs of $2000 an ounce.
Sadly, this situation means that many investors could easily lose access to their gold holdings if the centralized firm that provides and honors their paper gold investments disappears.
However, in that short period of time, the coin has proven to be an excellent store of value.
However, since Bitcoin is slightly over 10 years old, no one can say that the value of this coin will remain indefinitely.
Interestingly, gold coins were first struck on the order of King Croesus of Lydia, which today is Turkey, around 550 BC.
Of course, you can buy gold at any jewelry store, but you are then paying more than the weight value.
It doesn’t matter if the internet is down, or if the world is struck back to the stone age, you can spend your gold.
There are also over-the-counter services that allow you to buy Bitcoin directly in person and paying in cash.
While these requirements aren’t a problem for most people, there are still places in the world that lack this infrastructure.
One of the main reasons that the gold is no longer used as a day-to-day currency is that it’s notoriously difficult to conduct micro-transactions.
Recognizing the importance of micro-transactions to the Bitcoin ecosystem, developers have created an off-chain protocol called the Lightning Network that makes micro-payments efficient and affordable.
It’s a fair assumption to believe that you can purchase nearly anything in the world for the right amount of gold.
Bitcoin can be used to make large transactions, but it’s not as sure a thing as showing up with a treasure chest of gold bars.
You will first need to convert your Bitcoin over to a fiat currency to complete your major purchase.
Any two pieces of gold that are the same weight and purity always equals the same amount.
Since fungibility is a core requirement of any successful monetary system, developers have gone to great lengths to create systems to help restore and protect Bitcoin’s fungibility.
Large gold deposits require safe, live security, and a host of other security features to protect the bounty.
Even a small-time gold owner will feel the burden of securing their physical assets from theft or loss.
Unlike gold, online scammers can steal your Bitcoin.
If someone gains access to your private keys, they control your wallet.
For centuries, goldsmiths have melted down pure gold bars, diluted them with cheaper gold, and resold them as their originals.
According to a Reuter report, the gold industry was struck by surprise when they learned that they had been housing laundered gold bars for years.
However, it was less than 100 years ago that the US government passed a law confiscating all the citizen’s gold.
In nearly every country, there has been a lawmaker sounding alarm bells about the disruptive potential this technology provides.
Now that you better understand the differences between Bitcoin vs Gold, you’re ready to make an educated investment decision.
However, if you already own gold, you may not see enough reason to sell the asset to acquire Bitcoin.
Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities.