The World Gold Council denied the fact that gold is equivalent to bitcoin. In this “Gold VS Bitcoin” article, Bitcoin-Rejoin will tell you how are the two related and which one is better.
The World Gold Council has announced that bitcoin is nowhere near to the gold coins. They have almost declined all the proposed ideas about bitcoins on them. According to their statistics, they think that gold has 13% more chances to flourish than bitcoins. Although the bitcoin is also considered to be gold.
Gold vs Bitcoin: Major Differences
There are many differences between gold and bitcoins and some of the major factors are the following which we will mention here below.
#1. The Volatility of the Bitcoin vs Gold
One of the major differences between the gold and the bitcoin created in the volatility of both the assets. The measure that is used to measure the volatility is the Average True Rate. This measure helps us to understand how a market moves moderately.
In the past few years, the price of bitcoin has been more volatile compared to the price of gold. The bitcoin value has mostly or always been more volatile than any other price and it was not accepted by many investors. While the price of the gold being volatile in nature was not as volatile as the bitcoin is.
#2. Storing Bitcoin and Gold
The second point of difference is the way both the assets are stored. Bitcoin is stored in the digital wallet while the gold is stored in a locker or safe. As gold has a tangibility and it is a physical asset it can be stored in some vault or safe to keep it safe. Bitcoins can not be stored by any physical form in any safe or wallet. All that you can store in the case of bitcoin is a private key. This private key helps you to transfer the bitcoins from one party to another or in other words, it helps in transferring from person to person.
If you are in favor of buying bitcoins then let me tell you that buying a bitcoin could be extremely risky if you are not ready with a wallet of hardware and software. The hardware and the software wallet will help you to secure your private keys.
There are many ways to earn bitcoin and exchange it whenever you want and whoever you want but you will have to be very well versed with the system.
#3. As A Mode of Exchange
Both bitcoin and gold can be used as a currency and as a mode of exchange. Both the idea of using gold and bitcoin as a currency can result in several ups and downs. All the experts of the economy say that each of the currency has three characteristics and we will have to see if the gold and the bitcoin are able to satisfy the characters mentioned below, only then they will be considered as a currency.
- Medium of Exchange
- Account Unit
- Value Storage
If only the gold and the bitcoin are able to fulfill the qualities of the currency then they will be able to replace all the fiat currency in the world. Among the above-mentioned characters both the gold and the bitcoin do act as a medium of exchange, hence they are already qualified one step for a currency treatment. But the other two characters are yet to be discovered whether they are also fit to act as an accounting unit and also to store the values in them. Keep following the recent updates about the two assets to know how are they going to be used in the near future.