According to Coinbase, Bitcoin will be closer to digital gold in 93 days

Coinbase recently released the story of Bitcoin as digital gold

The main reason for further strengthening this link by halving and lowering the bid level was revealed in a storm promoting a follow-up blog post published on 7 February.

Scarcity creates value

After the gold standard was broken in 1971, the value of the dollar fell and the value of gold in dollars rose more than 4000%. Gold has a higher value than metals such as copper because of its relative deficit and difficulty in obtaining it.

Bitcoin is as rare as gold and is difficult to obtain artificially if evidence is obtained. However, it also has advantages over gold so that it can be transmitted through communication channels.

Halving increases scarcity

Bitcoins are limited in mining, and every time a transaction block is taken, a new token is taken as a gift. The initial price level of 50 BTC per block has passed two events into two and reduced it to the current 12.5 BTC per block.

After halving in May 2020, mining costs will drop to 6.25 BTC for each new block mined approximately every ten minutes. This will generate up to 1.7% of Bitcoin issued each year.

Via

@cryptoraxer

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