Gold vs Bitcoin – Is Bitcoin Gold 2.0?

In the past, there was a belief that diamonds are a girl’s best friend and it’s no lie that wearing a shiny piece of gold jewellery certainly does make us feel good.
But times have changed and so have we, with more women becoming active players in the modern digital age, we are now drawn to treasures of a different variety, that reflect who we are as powerful, independent, modern women.
The creation of cyptocurrency has introduced a treasure that comes in a digital form and with its ability to provide financial flexibility, everyone wants some.
So is Bitcoin the new gold 2.0?

women holding gold coin bitcoin on her eyes look forward to the future of digital gold rush during 2020 economy crisis calmly

Bitcoin – The Digital Gold

When we compare the two commodities, the similarities are obvious.
The scarcity and rarity of both gold and Bitcoin reinforces the comparison, as does the perspective that they are both long term investments and safe haven assets.

Additionally, both Bitcoin and Gold are considered to be valuable assets that are not affected by the changing volatile markets and unstable economies of the times. 

The process of what is known as ‘Bitcoin mining’ (adding transactions to the blockchain), furthers the comparison to the natural resource of gold, despite the difference in the actual ‘mining’.

Having said that, there does appear to be a growing belief among many cryptocurrency investors that Bitcoin could actually be more valuable than gold, as the currency of the digital world.

Unlike gold, which takes up space and is not easily transported, Bitcoin can be accessed, transferred, and traded electronically from anywhere in the world, at any time.

Bitcoin is also verified by blockchain technology, which is a more secure and transparent means of ownership.
The ability to send ‘digital gold’ across the world is unmatched, and is a big selling point for digital assets.

Gold wedding rings of Melbourne couple photographed by Lowina Blackman from Black Avenue Productions

Could Bitcoin Be Better Than Money?

Advocates of Bitcoin’s superiority note that the cryptocurrency is a better asset than gold because of its digital nature, making it more easily traded across platforms, providing financial flexibility and certainty.

More cautious investors seek to merge the two assets, since for some individuals, the digital or ethereal can never really replace the physical.
Despite some companies’ campaigns to replace gold with Bitcoin, others have created tokenized gold, secured by Bitcoin.

This is known as DGLD (aka digital gold).

Introduced in October 2019, DGLD is literally digital gold, since the token is equal to one-tenth of a troy ounce of gold kept in a Swiss vault.
For many, it is a perfect combination of the positive qualities of both gold and Bitcoin, backed by a ‘staychain’ which is extended every hour and has a single output. 

gold vs bitcoin debate image of a golden bitcoin trophy with sparkling background feature on money mindset coach blog

Many Options in the Blockchain Sector

With DGLD, investment in gold is more convenient than conventional methods, and most importantly, it is not tied to an unstable monetary policy or currency.
It uses the brilliance of cryptocurrency to update and innovate investment in a more traditional alternative asset, gold.

Another option that is linked to actual gold is Vaultoro, which may appeal more to the Bitcoin investors than the gold investors. Vaultoro is an online cryptocurrency exchange backed by physical gold in a Swiss vault, so that users may trade gold and Bitcoin interchangeably.

The constant friendly rivalry between gold and Bitcoin most likely will continue, each with their supporters and critics. Innovative visionary firms are seeking to combine the two into unique offers for investors, depending upon their personal financial preferences.

Despite being an asset that cannot be flaunted as an accessory with your favorite black dress, Bitcoin has fast become the new bling for the modern, progressive woman.
With its adaptability, transparency and accessibility, the new digital gold will remain as such for the long term.
Bitcoin will likely be a reserve asset in the future, while offering its users a lot in terms of value today.

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