Posted: 01.07.2021 | 09:38
Digital Gold: Bitcoin
Is Bitcoin the next generation digital gold or more?
For centuries, gold has been accepted by many civilizations around the world as a means of value and exchange. Although gold has no physical value—except for being a shining metal—people ascribed a serious value to it, which led to its increased importance. Gold has gotten to the point where it has become a better store of value than other similar assets.
Due to the rarity of gold, that is, its limited supply, its value has not remained low. Although it is accepted as an advantage that it can be easily processed and divided into small pieces, this does not render the unit (gram, etc.) based value worthless. The concept that comes to mind when gold is mentioned is fixed, easily recognized and more importantly, difficult to imitate.
It turns out that Bitcoin has many of the properties of gold. Like gold, Bitcoin has a limited supply. It can be decomposed into smaller values (1 Bitcoin equals 100 million Satoshis) and its technology makes it stable. A similar feature is that it is impossible to imitate. The superior side of gold is that one can send Bitcoin to the other side of the world in seconds, no matter how big or small, this does not prevent the transfer. That's why people don't just accept Bitcoin as digital gold, or even as a better version of gold.
Above all, Bitcoin has value in the payment system world. People are using more and more Bitcoin for their payments and making it widespread. As more people use Bitcoin for payments, it becomes more important to the system. Introduced in 2008, Bitcoin has become widespread in the last 5 years and its value and importance continues to increase day by day.