Could Bitcoin become more valuable than gold?
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An editor at Coincrop
28 Mar 2022 | 7 min read
itcoin has a limited supply of just 21 million tokens, and to date approximately 19 million have been minted since its inception in 2009. The value of a Bitcoin has grown over the years, with a peak value of $69,000 in 2021, a milestone for Bitcoin came in 2017 when it exceeds the value of an ounce of gold.
In this guide:
Disclaimer: All of the information written on Coin Crop is without influence and based on our analysis. No guarantee is offered concerning the accuracy of this information and therefore, any individual following up on it does as such completely at their own risk. Rates are correct at time of publication.
Why is Bitcoin valued so highly?
• It has a limited supply of only 21 million coins, making it rare in the Crypto world, and by limiting the availability, it increases the demand. When demand out strips supply, the price goes up.
• An issue with storing gold, is it is a physical asset and can be stollen, or damaged, where a Bitcoin is a digital asset and cannot be easy stolen of damaged.
• Bitcoin is accepted in more Countries around the world than gold, plus its easy to transport unlike gold at the same value (high values).
• Gold is not easily accessible as a payment option, unlike Bitcoin, which is accepted in many countries around the World, with many more coming online.
• The security of your Bitcoin is far safer than Gold, every transaction of a bitcoin is verified and registered on the Blockchain. Gold can easily be stolen or forged.
• As the World is becoming more and more connected, the demand for Bitcoin can only increase.
• As Bitcoin evolves, merchants around the world see Bitcoin as a payment option and this will only increase as the demand sours.
As Bitcoin is the most valuable crypto currency with a market capitalization of over $600 Billion, this value has soured over 1000% since it was created.
Is Bitcoin undervalued?
Many markets expert believe that Bitcoin is currently undervalued and believe that it marker cap value worth be in the Trillions of dollars before to long.
With the global economies struggling, many governments want to bring controls in against Bitcoin as it is out of their reach and cannot be controlled by them, unlike Fiat currencies, further to this they fear that people will rush towards Crypto to replace the ailing fiat currency.
As Bitcoin is not controlled by Governments as it is a digital currency, Bitcoin is only worth what people want to pay for it, ultimately is has no intrinsic value, but to many it’s a fantastic investment and will only increase in value.
As mentioned, many experts believe the value of Bitcoin will only increase, many have speculated that in 2022 we will see that value of Bitcoin exceed $100,000 per coin and go on to exceed $500,000 a coin by 2030.
Early investors have seen massive wealth gains; however, some later investors have seen large losses, it all depends on when you entered that market.
However, one thing is for sure (based on Bitcoin history) the value will go up over time. It time in the market that will bring the reward to the savvy investor.
Another point to recognise is that Bitcoin can be invested into other areas, such as Staking and Yield farming, the options to generate more income from your Bitcoin are far greater than simply holding a coin, the scope for Bitcoin is far reaching, see www.seedling.fi
When you weigh up the financial benefits of Bitcoin compared to Gold, to me, Bitcoin is a smarter investment than gold, plus you can get a second income purely from holding Bitcoin.
Earning with your Bitcoin
Holders of Bitcoin who are prepared to lend it to organizations can currently earn the following:
|OKEx||Fixed (7 days)|
|AAX||Fixed (360 days)|
|AAX||Fixed (180 days)|
|Binance||Fixed (90 days)|
|AAX||Fixed (90 days)|