Crypto fans claim that Bitcoin is the new Gold. There are many reasons for this.
Gold for decades has been a long term store of value, protecting savings from the effects of inflation. Bitcoin in the short term adjusts better to rising prices than gold.
Gold's limitations as an inflation hedge are even more dramatic this year. With consumer prices rising at their strongest pace since 2008, gold is down 11%. By contrast Bitcoin bugs point to the digital currency's roughly 40% increase in value for 2021, even after a recent crash.
Investment grade gold and at large quantities is mainly procured by trading entities. Bitcoin is accessible to the common individual.
Bitcoin's advantages by saving on the hassle and expense of storage, access and security associated with gold.
Bitcoin on the other hand is highly volatile on an intra-day basis where investors don't have peace of mind. If you loose your password, then you have lost access to your investment forever. Physical gold cannot be hacked.
What do you think?
Is Bitcoin the new gold?