Similarities and differences between Bitcoin and Gold

In recent times, the complicated digital currency widely referred to as bitcoins have witnessed an extremely significant increase in its price since when the concept was first conceived. However, it is a sort of controversial topic with several people not sure of how reliable bitcoins are. Bitcoin was the first cryptocurrency that was ever released. Furthermore, it is as a result of the popularity and surge in the worth of bitcoin that motivated the creation of other cryptocurrencies. Considering that bitcoin now worth more than gold, this article will try to highlight the similarities and differences between bitcoin and gold.

What is Gold and What is Bitcoin?

The definition of Gold and bitcoin are different.

Gold is the 79th chemical element, and thus, has atomic number 70. Gold has a very rich history of value, worth, prestige, careful usage and is found only among the wealthy. It is highly sought for and its major uses include jewelry and currency among others. It has also been used to coat or make objects, and would instantly increase the worth of that object to become several times its normal price. Bitcoin, on the other hand, is a virtual peer-to-peer currency that is stored in digital wallets. These digital wallets are mostly on the computer of a user or in the cloud.

First usage

The first usage of bitcoin and gold in terms of time is different. The first time gold was ever used is not dated because it has always been used by humans for more than 2,500 years. It is believed that the first coins made from gold were in 600 BC, with the Turks using the gold coins. Bitcoins, on the other hand, was launched in January 2009. That was the period the first bitcoin was issued.

Mining

Even though the process is different, the same term is used for the discovery of new gold and bitcoins. Every year, gold is mined in hundreds of tons through processes that include gold ore processing, byproduct mining, hard rock mining, and placer mining. The generation of new bitcoins is through a decentralized and competitive process known as mining.

Scarcity

In terms of scarcity, gold and bitcoins have similarities. It is estimated that there are only about 171,000 gold metric tons in the world. The implication is that it is rare and very expensive. Some of the places where you can buy gold and other precious stones are at Silver Gold Bull.

Bitcoin has also been limited as only 21,000,000 bitcoins can be mined. Out of this, over 18 million bitcoins have been currently mined with a single bitcoin worth over 8,000 USD.

Acceptance

The level of acceptance for gold and bitcoin is different. Gold is a precious stone all over the world. Being a tangible item it is easy to sell gold for its market value. No top country is yet to the public

 

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