Bitcoin vs Gold

Bitcoin is a decentralized digital asset running on Blockchain technology. Gold is precious metal and also a national Treasury Reserve Asset.

It has been used over the years traditionally as a hedge against Inflation and as a store of value. However, gold cannot service the basis of 21st century global economy. Bitcoin has proven to be a very useful tool in servicing in the modern world. It is a perfect store of value and medium of exchange.

So many people have been investing in Gold; however it no longer represents a safe Haven. It is not as inclusive as Bitcoin. It is limited to the state and those who can manage to engage with it. Bitcoin includes the low class, the middle class, and the high class. Anyone can be part of the network. Anyone from a local town in Kenya with a $50 phone can be part of the network, anyone from South America with $100 phone or device can be part of the network.


Bitcoin is able to deliver service, faster, stronger, smarter and harder than Gold. The smallest unit of Bitcoin called satoshi represents 0.00000001BTC, and can still be divided even further. This makes it possible for Bitcoin to be distributed around the world to 5 billion people. It is not practical to distribute Gold to people like Bitcoin. As we see increased adoption to Bitcoin, someone can connect their Bitcoin wallet to payment systems all around the world and automate everything with software to pay bills. If you find a high paying yield investment in Japan on a Saturday evening, you can chop off some of your Bitcoin move it to, Japan at the speed of light on a frictionless network. You can wake up on Sunday and hear about a better investment in Poland, you can chop off some of your Bitcoin with the same process and be part of the investment. However, Gold is not so mobile and moving it is very costly.


Bitcoin is secured by the Bitcoin network and its transactions are recorded on the Blockchain which is impossible to manipulate. The amount of computing power directed to the Bitcoin network is so much. We have around 1500 nodes across the world running the Bitcoin core. If anyone wants to interfere with the network, they will have to control 51% of the entire network. It is not practically possible.  Gold is stored in central places and needs so much input to keep it secured. If someone realizes you have gold in your house you immediately become a target. You can have Bitcoin worth $21billion on a flash drive and have the security keys in your head, and move with them around the globe and no one will ever know how much worth you are and you can hardly be a target.


Bitcoin is a network, and also a protocol, it is borderless permission, decentralized, immutable, instantly transferable, and it is deflationary. Everybody running the node which can be anybody is able to authenticate it. Bitcoin has a hard cap, there will only ever exist 21Million Bitcoin. Gold is immobile, it is border permission, it does not have a fixed supply, and there have been cases of counterfeiting. It appears in the markets in a heterogeneous form. Gold physical states make it Limiting. Bitcoin gives room for upgrade but no one can interfere with the core. Bitcoin layer two has made it possible to scale transaction. Technologies like lightening, allows anyone anywhere in the world to receive and send Bitcoin instantly. Bitcoin can be used both as a perfect store of value and medium of exchange. Bitcoin mining is just done within the network and requires computing power and electricity. Although it has been argued that Bitcoin mining consumes so much power there are better alternatives like green energy to be used.


People can store Bitcoin easily on a there devices or hardware without worrying about custodial fee, you can store Bitcoin worth $21 Billion and on a $21 flash drive or a $50 device for 100yrs safely without fear of external attack. Unless someone gets to your private keys, they can never access your Bitcoin. Gold custodial fee is very costly, if you are wishing to store Gold for 100yrs more than 50% of its energy will be lost by the cost of preserving it. It requires to be watched over. Now moving it requires so much security around it and it can take so much of manpower input.


Bitcoin is a financial inclusion. Anyone understanding Bitcoin can be part of the network. It is the most organized network to ever exist. It doesn’t care whether you are an eighth grade, at highs schooler, a footballer, a house help, an engineer, a lawyer, you can be part of the Network. It includes more people who are unable to access banks. Any person holding Bitcoin is a beneficiary of anything positive happening to it around the Globe. El Salvador accepting Bitcoin at a national state level is beneficiary to a person holding Bitcoin in Malawi on a $21 hard drive. Fidelity adopting Bitcoin in US is beneficiary to someone holding Bitcoin in Congo, everyone in the network is incentivized to making Bitcoin Better.  Gold is only is for those who can afford it. When we have financial crisis, like the one we had in 2009 the rich managed to opt in Gold however Bitcoin allows everyone to opt in Bitcoin as a hedge against inflation or financial crisis.   

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