London, UK, January 21, 2021 (GLOBE NEWSWIRE) – Many people often associate Bitcoin with Gold. This is because many believe that both are a safe investment. Despite their similarities, because Gold and Bitcoin are finite resources, they also differ in many ways such as physicality and price volatility. The article reveals an extract from the soon-to-be-released book, ‘Simple Bitcoin‘by Naseeff Ramzi where the author discusses the complexities and complexities of the mechanisms behind Bitcoin that have been attributed to its success. The book is in high demand especially from followers of the blog, YouTube channel, social media and content on the site.
Bitcoin and Gold alike come from mining; however, gold mining is very different from Bitcoin mining. Gold is located and mined from the earth and then fueled in flames. Bitcoin is created by computers that solve complex equations. Many refer to this as ‘Bitcoin mining’. And while these processes are relatively different, they do share some common ground. Bitcoin is considered the best investment of the decade, but Gold is considered one of the safest investments.
As mentioned previously, Gold supply is limited; they are limited resources. The main derivative of price and appeal to investors is to dig them to increase circulation, thereby influencing market value. Looking at the continued growth and establishment of these markets, it is clear that Gold and cryptocurrencies will continue to grow and provide value for the foreseeable future. Bitcoin connects people through the internet, anywhere in the world. The blockchain model and coding behind Bitcoin uses cryptography, computer science, and math to protect electronic communications and ensure that coins cannot be copied or forged, in the same way that someone cannot copy Gold.
Unlike Gold and physical silver, someone can trade and receive Bitcoin immediately without restriction. Gold and Bitcoin share the characteristic of manliness, which means that no individual can no longer cling to existence. Bitcoin’s market cap is over $ 154 billion (£ 120 billion). Bitcoin’s price is currently around $ 40,696 (£ 30,000), which is ATH (All-Time-High). The daily volume for Bitcoin is $ 8 billion (£ 6.2 billion) in tracked exchanges. Many believe that the market cap of Bitcoins will become hundreds of trillions in years to come. And this has led to an exponential rise in the recent price of Bitcoin, driven by increased buying. It has a lot of people investing with the prospect of a great return on investment within two years. Comparatively, the gold market is at $ 7 trillion (£ 6 trillion), and the daily volume of exchanges is estimated to be around $ 109 billion (£ 85 billion) to $ 231 billion (£ 180 billion) per day.
The total amount of Bitcoin that can be mined is capped at 21 million, the coding behind Bitcoin is programmed to make it harder to mine over time (there is a smaller reward per mathematical equation that be resolved). But how much Bitcoin has already been mined? There are about 18.5 million Bitcoins in circulation now. It means that about 80% of all Bitcoin has already gone through the mining process. When a mathematical equation is solved, miners receive Bitcoin as a reward. The amount of Bitcoin given in solving an equation is the ‘reward per block’. The prize is cut in half by block every four years (this happens every 210,000 blocks, blocks go through mining on average every 10 minutes). The figure remains constant because the coding behind these equations is a self-adjusting mechanism, which self-regulates the rate at which it solves the equations.
Due to the reduced rate of Bitcoin mining, the last of it will be 2140. Recent data indicates that approximately 165,000 tonnes of gold has been mined and exists above ground today. And at least 4,500 tonnes is mined each year, but it is not known how much of the mining remains.
Another key difference between Gold and Bitcoin is how it is stored. Gold is not convenient for storage and can be easily stolen or lost. Bitcoin can be stored in a digital wallet, hosted by various online services that can store Bitcoin securely, meaning no one can steal it. However, if passwords are lost, one cannot recover the Bitcoin. Although most gold investors store Gold in secure vaults, there is an ever-present threat of theft.
A key aspect to consider is that Gold has been used as a currency and for trading for over 2,000 years, but only since January 2009. Bitcoin has existed ever since. Within 11 years, Bitcoin has earned the title of being a nationally recognized secure haven asset. . Within a decade, the introduction and impact of Bitcoin has echoed throughout the trading industry and will continue to shape the future of economics as we know it.
The chart compares the price of Gold and Bitcoin before it peaked in December 2017. That’s when Bitcoin reached its highest ever. The graph shows that the value of Gold increases slowly and steadily throughout the year, at about the same rate as the value of silver. Finally, it is a safe asset to invest in. However, now consider the rate at which the value of Bitcoin has increased. The data shows an increase of 20 times within one financial year (from $ 1,000 in 2016 to over $ 20,000 in 2017). It is a clear indication that Bitcoin, over this period, is a much more profitable investment.
Not everyone can invest in Gold because billions of people around the world do not have access to banking infrastructure. But to access and buy Bitcoin, all you need is an internet connection.
Bitcoin came to work to address these issues by sending worldwide value with virtually no fees. Bitcoin and Gold have highly liquidated markets that many can trade with fiat money. Gold is more of a secure asset to invest in as the price of Bitcoins is very volatile, as evidenced when the price of Bitcoins went from less than $ 1,286 (£ 1000) to over $ 19,302 (£ 15,000) in just one year. However, volatility works both ways as the price of Bitcoins fell in 2018 to around $ 6,430 (£ 5,000) and slowly began to rise.
Bitcoin is often regarded as 2.0 by gold as they both share very similar properties, and do not need an authoritative governing body to operate and have an associated value, and both have limited supply. If you are curious about the similarities and differences between Gold, fiat, and bitcoin, refer to the chart below.
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