Bitcoin is often referred to as the digital version of gold, due to its global appeal and investor craze. But the Winklevoss Twins, who remain hopeful to launch their Bitcoin ETF soon, think Bitcoin is far better than gold–a bold statement, but so far their instincts have paid off when it comes to cryptocurrency.
Bitcoin And Gold Could Not Be More Different
It is not overly difficult to see why people would compare Bitcoin and gold these days. Both units of value are scarce, hard to come by, and pose a speculative aspect that makes traders willing to take risks. But that is where the similarities end, as Bitcoin allows people to fully control their finance. Gold, on the other hand, cannot be stored, transported, or used in a convenient manner.
Tyler and Cameron Winklevoss are two names synonymous with Bitcoin these days. Both experts invested in cryptocurrency at an early stage, and remain confident that cryptocurrency can become the greatest social network of all. In fact, Bitcoin is a currency designed for exchanging value over the internet, without being bogged down by intermediaries, counterparties, and regulation.
Contrary to what most people may think they know about Bitcoin, cryptocurrency has changed the way we think about transacting value. Additionally, Bitcoin also changes the way we think of storing value, which is a power that consumers easily give up to banks and other financial institutions. Unfortunately, banks do not have the best of track records when it comes to safekeeping user funds.
According to Tyler Winklevoss, Bitcoin is better than gold. While the two forms of value share nine foundational traits that make them valuable, Bitcoin blows gold out of the water in every aspect. This is not entirely surprising, as gold was never designed to accommodate the changes brought upon us by the Digital Age.
In fact, Bitcoin is far more scarce than gold is right now. Billions of dollars worth of gold are extracted from the earth every single year, and no one knows how much longer the supply will last. But gold is being used far less commonly than people would think. In fact, as a store of value, it is not necessarily the best choice due to its potential inflation rates.
That does not mean Bitcoin will simply become the new favorite asset either. Over the past few years, Bitcoin has seen its fair share of wild accusations and misuse by criminals. Although the same happens to every other form of value in existence, Bitcoin seems to be getting a lot more negative press for it. This is not surprising, as the media is controlled by politicians and financial institutions. Positive Bitcoin news would be comparable to biting the hand that feeds them.
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