Why I think Bitcoin is better than Gold

in #bitcoin8 years ago

Following are a few comparisons I have thought out, for the reason I am invested in Bitcoin..


Transferable 

Bitcoin’s can be sent peer to peer without the need for an intermediary or multiple intermediaries. Bitcoin is also highly divisible making the smallest transfer, as economic as the larger transfers 

Gold would need to be delivered by post, or change of ownership on a deposit account. Gold is not divisible, apart from a costly process of melting down the Gold which results in losses or mass. 

 

 
Limited Supply!!! 

Bitcoin - has a transparent supply, which is decreasing overtime at a predefined rate. Current Supply is just over 15.6m to it will cap out at 21m. Inflation last year was 9.3%, this year is 6.4% and next year 4%. 

Gold - is very un-transparent. We don’t know with a level of certainty how much has been mined, how much hasn’t been mined, how much (in the future) is mineable in space.. Interestingly, Bitcoin also annihilates all national currencies in this category. Bitcoin over a long enough time horizon by this metric alone can only go up in value.. 



Divisible Cost 

Bitcoin - costs the same whether you buy $1 or $10,000 

Gold - costs far more per gram the less you buy. Just see (https://www.bullionbypost.co.uk/gold-bars/). This is the main problem that DIGIX are trying to solve. 



Transaction Cost 

Bitcoin - cost of transaction is negligible 

Gold - cost of transaction can be very high when your paying for insured delivery and brokers.


Costs of Storage 

Bitcoin - Free 

Gold - Either the cost of servicing a vault or paying insurance to protect yourself at home

Access 

Bitcoin - You can access you Bitcoin wherever you are in world 

Gold - Access is only to where it is physically deposited 



It an interesting case when you go through comparisons between Bitcoin and Gold is how many categories Bitcoin wins out. Now Gold does have some uses in the real world like Jewellery and Electrical cables, however the Jewellery case comes in and out of Fashion and it’s too expensive to make economic sense in electrical cables. Value is set in supply and demand. The way I see it with Bitcoin is, supply has a natural cap, so if you feel that demand will rise over the coming years, it makes a pretty strong investment case for Bitcoin, especially when compared to Gold and National Currency for that matter.  

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#Thanks Churdtzu

I'm new to this, certainly need pointers..

Thanks

Forgot the space, got it now ;)

Can you pay your internet bill with bitcoin?

Depends where you live. At least in Australia, yes. https://www.livingroomofsatoshi.com/

Check out www.plutus.it

I think it's an interesting project. Pretty much a gateway approach, so not directly paying with bitcoin, but it is the most viable project i have seen for building on Bitcoins currency status. Plutus is subsequently in the middle of an ICO.

Check out www.plutus.it

This is providing a gateway for Bitcoin to be used to pay for anything and everything with national currency. I know it's not direct, but it's a project like this that will increase the use case for Bitcoin. You certainly can't pay bills with Gold, however I sure your comparing it to my currency comparisons, and for that point, it is certainly a work in progress, however I think the network will get there...

I pay my VPN bill with bitcoins. I could pay any bill I want with my Coinbase Visa bitcoins funded debit card, but that seems like cheating.

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