$BTC: Five reasons why Bitcoin could be a better store of value than gold

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In recent years, Bitcoin has become a popular alternative to traditional assets such as gold, with many proponents claiming it to be a superior store of value.

Here are five reasons why Bitcoin can be a better store of value asset than gold:

Limited supply: One of the main features of Bitcoin is its limited supply, with a maximum of 21 million bitcoins that will always be in circulation. This finite supply gives Bitcoin a level of scarcity not found in gold or other fiat currencies, which can be printed at will by governments. This scarcity can make Bitcoin a more attractive store of value for investors looking to preserve their wealth over the long term. Decentralized Nature: Bitcoin is a decentralized asset, which means that it is not controlled by any central authority such as a government or a bank. This decentralization gives Bitcoin a level of stability and security not found in traditional fiat currencies, which can be subject to government manipulation or interference. Greater liquidity: Bitcoin is a very liquid asset, with a global network of exchanges and more than 100,000 merchants who accept it as a form of payment. This makes it easy for investors to buy and sell bitcoin and gives them quick access to their funds in an emergency. In comparison, gold can be harder to sell, especially in large quantities, and can require investors to go through a lengthy process to access their funds. Greater accessibility: Bitcoin is accessible to anyone with an internet connection, making it a more inclusive store of valuable asset compared to gold, which may be more difficult for some individuals or groups to access . . This long-term growth potential, combined with its other favorable characteristics, makes it a potentially attractive store of value for investors concerned with preserving and growing their wealth.

On November 21, 2018, Lou Kerner, the founding partner of venture capital firm CryptoOracle, called Bitcoin the greatest store of value ever created and said it should overtake gold over time.

Kerner, who has an MBA from Stanford Graduate School of Business and worked as an equity analyst for Goldman Sachs & Merrill Lynch, has been in the crypto space since 2013. Then, in December 2017, he and James Haft co-founded CryptoOracle. .

Kerner made his comments during an interview on the CNBC Worldwide Exchange show by anchor Brian Sullivan.

Kerner, who is a firm believer in the store of value use case for Bitcoin, began by explaining that the crypto has been so weak because for the most part there is no underlying value outside of the cryptocurrency. confidence.

As for Bitcoin, he said:

We believe it will eventually replace gold. Gold is an 8 trillion dollar thing, I think it’s a store of value. I think it’s the greatest store of value ever created, and it should overtake gold over time.

About two years ago, Michael J. Saylor, co-founder of the Nasdaq-listed business intelligence firm MicroStrategy Inc., explained in an interview with Stansberry Research why MicroStrategy chose to invest in Bitcoin rather than in gold.

I considered gold, then started studying both, then realized that gold miners are going to produce about 2% more gold every year. Let’s just say in the best of the world for 100 years we produce 2% more gold, that means $100 million will go down to $12.5 million in 100 years. On the other hand, Bitcoin goes exponentially towards stock at infinity to sink. There will never be more than 21 million bitcoins.

So you’re really talking about, at most, diluting $100 million worth of Bitcoin from 10 million over a hundred years. Since bitcoin is an infinitely hard asset, while gold can be produced by human beings with enough incentive, I realized that in the long run, bitcoin is the harder asset than gold.

He pointed out that Bitcoin is different from other commodities in that when its price increases, it is not possible for miners to react by increasing supply:

If you double the price of gold, you will double the incentive for miners to produce gold, and if gold increases by a factor of 10, human beings have a way to put capital into it. mining and ingenuity and they will invent better ways to mine and at some point they will melt their jewels, or they will find other gold coins. On the other hand, if Bitcoin increases by a factor of 10, no investment in Bitcoin mining can produce more Bitcoin.

Here’s Saylor explaining how digital gold is better than physical gold:

Bitcoin is digital gold and that means it’s faster. I can move it a thousand places in seconds. It is stronger. I can promise a hundred million dollars for three hours in Japan on a Saturday afternoon. It’s smarter. I can write a computer program that will cut a million pieces and do complicated things with

It’s only going to get better every year forever because its software and what that means is people who are drawn to Apple and Amazon and Google and Facebook, because they’re smarter, faster networks and stronger, they will be attracted to Bitcoin.

In a recent interview, billionaire investor and entrepreneur Mark Cuban shared his thoughts on Bitcoin and gold.

Cuban is the majority owner of the professional basketball team Dallas Mavericks, as well as one of the sharks of the hugely popular reality TV show Shark Tank (which airs on the ABC television network).

The Cubans’ comments were made during an interview on the Club Random with Bill Maher podcast.

According to a report from Decrypt, Cuban still seems bullish on Bitcoin:

I want Bitcoin to go much lower so I can buy more.

As to why he thinks Bitcoin is a better store of value asset than gold, Cuban said:

Gold is a store of value, just like Bitcoin If everything went wrong in a hand basket and you had a gold bar, you know what would happen? Someone would beat you or kill you and take your gold bar. It’s useless.

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