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Top 10 reasons why Bitcoin is better than gold

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Bitcoin over gold

What to expect in this article:

  • Our top 10 reasons on what makes Bitcoin better than gold
  • Frequently asked questions, according to google, on gold-bitcoin topic

When stock markets head south – people used to lean on gold as a safe haven. 

When fear of war heats up – people used to run to gold to save their wealth.

We say ‘used to’ because gold is now facing stiff competition for the ‘safe haven’ title from Bitcoin, especially among millennial’s.

Millennial’s were mocked for their ‘irresponsible’ investment frenzy on a ‘internet money’, as recent as 2017, however, those same mockers are now looking at Bitcoin differently. Thanks to the entry of Financial giants like Fidelity and others who are offering their investors opportunity to get into Bitcoin and cryptocurrency.  

All of a sudden, Bitcoin went from ‘fake internet money’ to ‘non-correlated asset’ that offered unparalleled hedge.

Even before Fidelity caught the wind, Millennial’s knew why Bitcoin was better than gold.  Here we are listing just 10 of them. We call them ‘top 10’ as a click bait. Click bait or not, we believe that these reasons make Bitcoin a great contender to Gold.

1. Ban resistant:

In 1933, Franklin D Roosevelt issued an Executive Order (6102) “forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States.”  Just like that, people were ‘forbidden’ to hold the gold.  It took a good 40 years for gold to become legal in America.  Government cannot ban Bitcoin. People can hold, transfer and transaction in Bitcoin with or without government because Bitcoin runs on Math, not bureaucracy.

2. Easy to Carry: 

Unlike gold, Bitcoin is digital and that makes it a lot easier to carry it with you anytime and you don’t need an extra space to carry or hold them either. You could move billion dollars worth of Bitcoin without leaving your room. To move a billion dollars worth of gold will take a lot of logistics, customs, clearances, middle men, insurance and cross a lot of red tape.

3. Cross border:

You can cross borders with your bitcoin without a blink. If one tries to cross the borders with 1 KG gold ($50K in value) – they could face a lot of hardship, penalties, customs duties and so on. And in some cases, have their gold seized without reason, as DEA did to this woman who was carrying her dad’s retirement savings (and she wasn’t even crossing the border!).

4. Limited in supply:

The biggest factor that works in the favor of bitcoin is its very limited supply.  And the fact that there are only 3 million more Bitcoins to mine makes it even more dearer. When it comes to Gold, approximately 2500 tons of Gold is mined every year across the world. No one knows with certainty if there is a cap on how much gold we can extract from the earth.

5. Counterfeit free:

One always needs to be careful before buying gold as it can be faked or mixed with non-precious metals. There have been tons of occasions when people have been tricked into buying ‘not so pure gold’ (fake, mixed with other metals, not accurate weight, etc.,). This is quite impossible with bitcoin as every bitcoin can be tracked from its inception to its latest ownership status.

6. Divisible:

There is a limit on how far you can divide your gold.  Bitcoin is divisible into fractions in the millionth, also called ‘Satoshis’.  The technology is evolving every day and some believe that we will soon be able to conduct micro transactions using bitcoin. That means, someone can be paid a penny in a micro transaction using bitcoin with even smaller fee.  Gold cannot claim that – there is hardly any value for speck of gold.

7. High upside:

Believe it or not, Bitcoin is still a nascent technology and there are new innovations taking place every day on it. That makes it impossible to gauge its potential future value. One could argue that this ‘unknown’ is Bitcoin’s greatest downside – that argument is not without merit, although we tend to be very optimistic about the upside.

8. Easy to trade:

Bitcoin can be easily traded online on a number of exchanges. And the traded bitcoin can be easily converted into any local currency or an equivalent pairing.  You cannot sell your physical gold online without transferring the physical possession.

9. Transactable:

Bitcoin can be used as digital currency to buy and sell stuff.  You can transact while on the go on your smartphone or a laptop.  Try carrying a gold bullion with you and see if you can buy a sandwich with it.

10. More than an asset:

Gold is just an asset. At the most, it may be used as currency where it is accepted (which we presume is very few places). Bitcoin is not only a ‘non-correlated asset’, it is regarded as a global digital currency.  But beyond those two use cases, Bitcoin represents the blockchain technology itself. It is the very genesis of blockchain technology that could change the world. In that sense, Bitcoin is a safe haven asset, currency and a technology that could change the world as we know it, gold cannot claim.

11. Bonus Reason – Dividends:

dividends forkingsLet’s add one more reason just for the kicks. If you held 10 grams of gold in a safe for 5 years and when you open the safe – you find 10 grams of gold, nothing more and nothing less.  Obviously, if market went upward – it might be worth a bit more but that’s about it. If you stored bitcoin in the right wallet for 5 years, when you come back to the wallet, you will find your Bitcoin along with all the forked coins.  Some of these forked coins are now worth $300 or more each. In addition to the asset appreciation, you stand to gain all the forked coins which could be worth something and one could look at this as ‘Bitcoin dividends’.

Frequently asked questions on Bitcoin and Gold

While we are on the topic of Gold and Bitcoin, here are some frequently asked questions on google:

FAQ 1: Can I buy bitcoin with gold?

If all the reasons listed above make you drool and you want to exchange your gold for bitcoin.  Is that even possible?

Vaultoro claims to provide trading option between gold and crypto.  That is, you can buy bitcoin with gold and you sell your bitcoin for gold.   We have not reviewed or vetted this option, but it is just cool to see that such an option actually exists.  Their video explains how Vaultoro works.

FAQ 2: Is Bitcoin based on gold?

No.  Bitcoin and gold have only one thing in common.  They both are now regarded as financial assets. However, bitcoin is not based on gold.  But if you think deeply, Bitcoin needs internet and computer processors to mine, transact and exist. And the internet and computer run on processors and processors have gold in it.  So this question is not as silly as it appears to be! Deep!

FAQ 3: What is the best gold backed Cryptocurrency?

While we are not invested in gold backed crypto, since this is a commonly raised question, here are a few options that you could research on:

  • Perth Mint Gold Token: The first (and probably only at this point) government backed cryptocurrency that is also backed by gold.  Learn more at Perth Mint Gold Token official page.
  • Paxos Gold: According to their official page, “each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company.”

  • Digix Gold:  Digix claims to be the ‘finest gold tokenized’.  Their 1 token is worth 1 gram of gold. Here is a video that explains how Digix Gold works.

There may be more options out there, but these seem to come out as top choices.  If we were to pick one – we would pick Perth Mint Gold Token.

Thank you for reading the article. 

Have you bought bitcoin instead of gold for any other reason? let us know.

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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All Roads Lead to $100K Bitcoin: Various Perspectives that Support $100K BTC

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Bitcoin to 100K

Bitcoin to 100K

There are a lot of theories in the crypto space that argue that Bitcoin will reach $100,000 before the next halving.  Some even argue that we could reach that price point before the end of 2021.

Here we have compiled a few perspectives that support a higher price point for Bitcoin.

IF we missed any, please let us know and we will be glad to add it for others to read.

Bitcoin’s ability to reward savers

If you saved $100,000 throughout 2017, today its value would have been $94,000, a total loss of 6% due to inflation. That is without considering the fees and hidden charges that institutes charge.

Even if you invested in the S&P 500 for 12 months at $8333 each month throughout 2017, your portfolio value today would have been $110,000.

If you saved $100,000 in Bitcoin throughout the 2017 (prices ranged from $920 through $14,000 during Jan 2017 through December 2017).  For the purposes of this comparison we are using the last week prices from each month as available on Coinmarketcap historical snapshots.

$100,000 invested in equal amounts throughout 2017 would look something like this.

Bitcoin to 100K

Since 2017, Bitcoin price has crashed and rebounded.  At the lowest point of the crash of $3000 per bitcoin, your portfolio value would have been $144,000.

In today’s average price of $16000 per bitcoin, your $100,000 savings would have been worth $770,000.

Due to its increasing demand and reducing supply, Bitcoin is expected to reach $100,000 in the next 4 years. Some models show that bitcoin will be worth $1 Million by 2030.

Only time will tell us whether bitcoin reaches these prices or not, but point being, no other asset of any class has crazy growth predictions like Bitcoin has.

Stock-to-flow ratio

According to Plan B, Gold had the highest stock-to-flow (SF) ratio of 62.  That is, it will take 62 years to produce the gold that is currently in the market.  In other words, you cannot willy-nilly inflate the supply in a year or two due to how scarce gold is and how difficult it is to find and mine it.

Current SF for Bitcoin is 25, however, by the end of 2020 or 2021, this could jump to 50.  By the next halving in 2024, Bitcoin could surpass the SF of gold.

According to Plan B, “The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. That is quite spectacular. I guess time will tell and we will probably know one or two years after the halving, in 2020 or 2021. A great out of sample test of this hypothesis and model.”

However, following the trajectory of Plan B’s SF analysis, Bitcoin could easily reach $1 Million dollars by 2030, according to some commenters.

Stimulus and unlimited printing of fiat

COVID has exposed another flaw in the fiat system.  It is that governments can print as much money as they wish whenever they wish to do so.

Whenever governments resort to simply print money without having a basis in asset value or growth in GDP, it erodes the value of the fiat in circulation.

This is what happened to Argentina, Venezuela, Zimbabwe and more.  

The US dollar has lost over 99.97% value since 1900.  For instance, whatever you could buy with $1 in 1900 will need $31 today.

COVID has added salt to the wound for fiat.  It exposed the blatant fact that governments can and will print money to their whim without regard to the inflation and impact on savers.

This increased supply in fiat helps stock market and market liquidity which in itself helps people who are invested in the stock market and other vehicles which is generally the wealthier part of the society.

Other factors strengthening the crazy Bitcoin price predictions

  • Institutional FOMO, for instance, Square, PayPal, Grayscale, etc., entering the market
  • Easier onboarding of new retail investors
  • Greater technologies and DApps being built on Bitcoin 
  • Great DeFi services to lend and borrow money
  • Globally accepted single denomination that does not need to be converted in the future (with enough places accepting bitcoin)

What other factors do you think will contribute to Bitcoin’s shooting past the $100,000 barrier?

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

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