Bitcoin is a form of digital currency and the most popular cryptocurrency, it does not exist in the physical world. Gold is an element with the symbol Au and atomic number 79. It occurs naturally in its purest form, which is yellowish, bright, dense, soft and ductile. Bitcoin has been compared to Gold in many instances. Bitcoin and Gold have many similarities and differences. If you have any of them in your possession than it can make your eyes shine, so we did an article to understand similarity and differences between both of them. They are given below.
Similarities between Bitcoin and Gold
Bitcoin and Gold have many similarities among them. They are explained below:
- Bitcoin and Gold both are speculative assets. Gold’s price increase and give fast benefit to the owners. Bitcoin is also similar. Bitcoin halving events have influenced its prices, and users have made great amounts of money after price hikes. So, both of them are speculative assets.
- Bitcoin and Gold both are great investment platforms. They are regarded as Safe-haven Platforms. People buy Bitcoins and Gold, hoard them and sell them when the prices are very high. This gets them a lot of benefit in return. The ownership of Bitcoin and Gold is an investment in itself.
- Bitcoin and Gold are durable. Bitcoin is in a strong position and Gold is also considered a durable precious metal due to its prolonged history.
- Bitcoin and Gold have unique characteristics, and they cannot be counterfeited.
- Bitcoin and Gold can be accessed, bought and sold online. Gold has huge market online like Bitcoin as well.
Differences between Bitcoin and Gold
- Bitcoin and Gold are very different in their nature. Bitcoin is immaterial, while gold is material. Gold is an object that can be hoarded physically; however, Bitcoin is a crypto currency that can be hoarded online using software. However, they can also be hodled in physical form as paper or in physical devices but its origin is mostly digital.
- Miners find deposits of gold in mines and retrieve it with much difficulty. While bitcoin miners solve computational problems online in mining and thereby collect reward of new Bitcoins. Creation of both assets is very different from each other.
- The total supply of Bitcoin is known, but the total deposits of Gold available in the Planet Earth or Universe are unknown. Bitcoin’s total supply is limited to 21 million. Gold’s potential total numbers are greatly unknown.
- Gold has been in use since last 2,000 years ago. But Bitcoin was created in 2009, and it is just a decade old.
- Gold’s tenure will remain until human race lives or maybe for more thousand years, while on the other hand, Bitcoin last mining is said to be done in 2140. It is said that when the last bitcoin is minted, Bitcoin system will collapse, while this logic is not supported by us but uncertainty exists due to better crypto currency.
- Another difference between Bitcoin and Gold is that Gold is a commodity, while classification of Bitcoin is more elusive.
- Gold is not accepted as a form of currency. But Bitcoin is a type of money that is accepted as a payment medium and transactions are done.
Bitcoin and Gold are similar to each other, but they also differ from each other at some points. Some call bitcoin as digital gold. with them present currently, only future will tell if both will exist in human history or not.