Bitcoin vs Gold

A Comparative Study of Bitcoin and Gold 

Bitcoin is a peer to peer cash system. It is a digital electronic system that needs software to precede the work. The software helps not only in the learning, but also it authenticates, verifies and protects the transactions moreover no third party involved in the complete processes d procedures. It was the year of 2008 when its unknown inventor introduced it, and in 2009 it becomes a public thing.  In 2010 a person used hid earned bitcoins to buy pizza, and the cost of pizza was 10000 bitcoins. With the passage of time, it begins getting the attention of individuals at large number. 

In 2011 bitcoin accounts faced some problems.  It falls prey to the theft and hacking and those group who considered the bitcoins as a currency decided against it to make the value down, and in this way, fear was spread about the security and privacy. Such incidents of abusing caused fluctuations in the price of bitcoin. In 2012 the use of bitcoin started growing fast but in the black market and the in particular illegal goods were traded. There were not only the wrong links but also the positive like educational groups those legitimize the currency.

A surge in the interest of bitcoin caused by the seizing of bank deposit that was done by the eruption authorities in 2013. In the same year, the aggregate value eclipse to a billion dollar and the reason was the price surge.  The concerned authorities took steps to control the illegal activities in the same year. The year of 2013 has many stories regarding bitcoins. The problems were monitored in some way, and the value of bitcoin started rising again.   The year of 2013 caused fluctuations in the price, but with the passage of time, the trust was gained by the individuals and the Bitcoin become the popular digital currency.

The price of bitcoin has increased very much in a short period. The improved and updated system has provided it the best image.  Gold is an element that is mined every year at a large number. It is a physical thing and has a value that comes after the currency. Normally a person having a right amount tries to save his money in the form of gold. On the other hand, we have bitcoin. That is a digital currency stored in the digital wallet and moved peer to peer and minned through the use of electronic systems.  

The purpose of explaining the history of bitcoin was to explain that how it prices goes up and down by different events and with the chronological order how it gains fame. The same case is with the value of gold. It goes up and down and has variations. Like if today the price is $1200, the next day it can be $1248 or less. So this fluctuation in prices has made a competition between the bitcoin and the gold. People have to make a decision about the right option for saving money. Some like to purchase gold, and some like to make it a digital currency. So the decision about this investment is the choice of people.

What people consider the profitable, they do that. It is the price range that makes the decision-making process difficult. The inflation and deflation is a very dynamic phenomenon. Bitcoin has an advantage over gold. The supply level is fixed and transparent. It eliminates the fear of normal pressure of inflation that is associated with the overproduction of the asset value may diminish etc.  The most liked value of bitcoin is its schedule of disinflationary supplies. People consider the gold as same, but a fact is that the gold element is such an asset that is a sneakily inflationary.  The gold is not set up to preserve the value in the bit coin’s way. 

People who consider that Bitcoin is less important than the gold present their view and these views are outstanding at their place.  The gold has an advantage over bitcoin, and the position is named as reliability and trust. The value the gold has lacks the bitcoin as it is a very old and historical asset and people like to store the value uniquely.  The gold element is considered as tried and true money due to their historical value. Another critical thing about gold is that it is not dependent on the internet. Bitcoins are independent on internet and o government can be stopped from blocking the internet in her region.

So in a case when the government blocks the internet then what will happen is understood. In the event of gold, despite a little fluctuation, the gold is the safest way as it cannot face any blocking.  Some people made a comparison in this way: what is the ease of tracking, in the case of gold it is easy as available quickly, but bitcoin case is complicated because it demands time, cost and last efforts. Though gold is rare but bitcoin is the more exceptional. There is a reliable network at the global level for the gold exchange but the bitcoin still has limitations and in return is in transition.
Bitcoin is purely speculative whereas gold has a stable value of baseline. It is easy to convert the gold into cash, but the bitcoin conversion needs particular processes.  According to the latest records, the value of Bitcoin has surpassed the cost of gold (an ounce).  Like the price has increased e.g. it was $1268, and the cost of gold was $1233.  Each thing has a value of its own. Gold is valuable at its place, and so is the bitcoin. Each has its benefits at its place. It is the choice of the individuals that what they like for their investments.