If you don’t know about bitcoin, you might be living under the rock, or you are not internet savvy. Bitcoin is a new currency created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no intermediaries – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy anything with it now.
In this post, I am going to show you eight reasons why bitcoin is better than gold.
1. Bitcoins can be used to buy merchandise anonymously. Also, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. And they have gone up in value at a tremendous rate. Last year I bought 1 Bitcoin for $500 in April now as of writing this it is $2,251, and by the end of the year it will reach $3000 for one bitcoin
2. 1 Bitcoin surpassed the price of 1 ounce of gold.
The cost of a single Bitcoin rose above the price of an ounce of gold for the first time in March this year.That trend held up with Bitcoin rising to $1,289.09 per unit while its fellow safe haven asset, gold, fell to $1,231.5 per ounce, based on March futures. Now fast forward, today 1 ounce of Gold is $1,320. Increment of gold is less than 1% whereas Bitcoin rose more than 45% within two months
Bitcoin’s can be sent peer to peer without the need for an intermediary or various intermediaries. Bitcoin is also highly divisible making the smallest transfer, as economical 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.
Bitcoin – has a transparent supply, which is decreasing over time 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.
5. 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/).
6. Transaction Cost
Bitcoin – cost of transaction is negligible
Gold – the cost of transaction can be very high when your paying for insured delivery and brokers.
7.Costs of Storage
Bitcoin – Free
Gold – Either the cost of servicing a vault or paying insurance to protect yourself at home
Bitcoin – You can access you Bitcoin wherever you are in world
Gold – Access is only to where it is physically deposited
9. Astronomical Return on Investment
Conclusion before you buy that gold as an investment or spend million to mine physical gold you better think twice. Let me blow your mind. Charlie Bilello noted that a $10,000 investment in Bitcoin made in July 2010 would have earned investors a $200 million return.
To be exact, a Bitcoin investor who purchased $10,000 worth of Bitcoin in 2010 would have earned $201.56 million.
In contrast, an investor who bought $10,000 worth of gold in 2010 would have experienced a negative return of $9,981.
Photo source: pixabay
Additional Sources http://money.cnn.com/infographic/technology/what-is-bitcoin/ https://cointelegraph.com/news/simply-wow-10000-bitcoin-investment-in-2010-now-worth-200-million-gold-9900 https://steemit.com/bitcoin/@hisnameisolllie/why-i-think-bitcoin-is-better-than-gold