Decentralized: Bitcoin is more decentralized than gold. There are more than 100,000 hubs everywhere in the world confirming the Bitcoin blockchain. Bitcoin miners and designers are everywhere in the world also.
Gold mining is dependent upon the ward they are situated in and the neighborhood government can undoubtedly force powers over the gold yield since it is physical in nature. The equivalent can’t be handily said with bitcoin mining since bitcoin is computerized and can be immediately gotten from control or seizure by outsiders. National banks and governments control by far most of the worldwide gold inventory.
Gold necessities a caretaker, or outsider, to execute all around the world. Gold requires trust. We realize banks control the caretaker game, and governments and banks are firmly interwoven. Bitcoin fixes this disadvantage of centralization and requesting trust. Bitcoin exchanges, freedom, and last settlement needn’t bother with trust in an outsider. It is a shared money-related framework.
Censorship and seizureship resistant:Â As a peer-to-peer network, bitcoin is more censorship and seizureship resistant than gold, because bitcoin does not need to rely on centralized third parties to be transacted among people or entities. Since gold, by nature, needs to rely on third parties to be transacted at scale, those transactions can be censored or seized.
Historically, people in oppressive nations have had to leave and migrate to other countries with nothing because they were robbed or their very own country did not allow them to leave with any material possessions. Bitcoin has liberated millions of people all around the world and allowed them to freely move to other cities, states and nations with all their wealth by just memorizing their 12-word seed phrase, which allows them access to their bitcoin. Bitcoin is liberating. Bitcoin is freedom.
Secure: Bitcoin is more secure than gold. Again, gold relies on banks and custodians for security, which is costly. Bitcoin is secured by cryptography and encryption. The Bitcoin network is the most secure network in the world. If you take physical possession of your gold you can only put it in one place to store and secure it. If that one place is robbed, then you’ve lost your gold.
The Bitcoin network allows you to create Bitcoin addresses that require multiple private key signatures in order for the bitcoin to be spent or moved to a different address. This means that you can store your private keys in various geographically dispersed locations. Therefore, if someone gets a hold of one of your private keys, they cannot move your bitcoin, because they will need all the required private keys you designated in your quorum in order to move your bitcoin.
Gold transactions typically require third-party involvement, where security is questionable at times. The only time you would not need a third party when transacting with gold is if you are in person with the other party you are transacting with and you happen to have the exact amount of gold they are requesting. If you do not, it is pretty tough to shave off exact amounts of the proper weight of gold needed for a specific transaction. You would also then have to assay the gold to ensure it is truly gold and not painted shiny tungsten (or some other metal or material), which has always happened throughout history and continues to happen.
Bitcoin transactions are the most secure transactions in the entire world. They are performed using SHA256, which is an NSA-developed cryptographic hashing function. Because bitcoin can be secured in such a strong and geographically dispersed manner, it cannot be easily seized or stolen like gold has been all throughout history.
Scarce: Bitcoin is infinitely more scarce than gold. One of the main reasons gold was the best form of money and store of value for thousands of years was because of its scarcity. Bitcoin’s supply is programmatically fixed; it is absolutely scarce. Gold is somewhat scarce. Gold’s current annual inflation rate is about 2%. Gold miners are constantly uncovering new gold mines on land and in the ocean. Also, there is an infinite amount of gold floating around in the universe.
Several companies have already speculated that they will mine gold on nearby asteroids at some point in the not-so-distant future. If the price of gold goes up, then more miners mine gold because their reward is greater and, therefore, the global gold supply increases (diluting your share and gold holdings) more than it would have if the price did not rise. With bitcoin, this phenomenon cannot happen. When the bitcoin price rises, the issuance, and mining rate stays the same; it actually reduces by 50% every four years. Bitcoin’s stock to flow ratio gets better every ten minutes, every day.
What is the exact current supply of gold? No one knows. There are estimates out there, but we cannot know for sure. We just have to guess and trust what other people tell us. What is the exact current gold mining rate? We think it’s around 2% but it could be more, we cannot know for sure. What will be the gold supply next year? Or in 10 years? What will the mining rate be then? Impossible to know all of these factors with complete certainty. You just have to trust other third parties.
There is zero transparency in the current or future gold supply and mining rate. With bitcoin, we know all that, verified independently. Bitcoin’s issuance rate and monetary policy are fully transparent and unchanging. Bitcoin is simply the better form of money and store of value.
Bitcoin has a hard-capped supply of 21 million bitcoin. Each bitcoin can be divided into 100 million smaller units called satoshis (sats), just like how a dollar bill can be divided into 100 smaller units called pennies — the same concept. No central authority, no miner, no developer, not even the creator of Bitcoin, Satoshi Nakamoto, can create more bitcoin. It is hard-coded into the network. Bitcoin’s current annual inflation rate is around 1.7%. In 2024, it will be reduced by 50% down to 0.85%, and the same thing four years after that, until all the bitcoin has been mined.
For reference, 18.7 million bitcoins have already been mined and are out in the world. So only 2.3 million are left to be mined and the last bitcoin won’t be mined until the year 2140. This means that bitcoin is the most scarce asset our world has ever seen.
Easily portable:Â Bitcoin can be transferred anywhere in the world in just a few minutes, without anyone or any entity stopping it. Bitcoin is sent today in many parts of the world via radio, satellite, and mesh networks. None of those options require the internet. Again, gold, by nature, physically needs someone to transport it to other cities, states, countries, continents, and so on. This is costly, time-consuming, and logistically challenging.
Gold is physical, which hurts it as a useful form of money in today’s global, digital, 21st-century society. It is simply impractical to use. It is extremely heavy and costly to store and secure. It would take weeks to send gold to another country and it would cost a lot of money. You would also have to trust so many third parties in that process. Being non-tangible is a major feature of bitcoin, not a flaw. ‬It allows it to not be bound by the physical world.
Holding gold has continuous costs like storage, maintenance, and security. You can hold, store and secure a billion dollars worth of bitcoin for the same cost of holding, storing, and securing $1,000 worth of bitcoin. You cannot say the same with gold, because it is physically heavy. Transporting $10 worth of bitcoin is just as easy and costs the same as transporting $1,000,000,000 worth of bitcoin. Transporting those two different amounts in gold poses extremely different requirements and problems. Gold is nowhere near as salable across space as bitcoin is. Bitcoin solves all those drawbacks of gold. Bitcoin is highly salable across time and space.
