Is Bitcoin really a digital gold?
Is Bitcoin really a digital gold? – Bitcoin’s supply is limited like gold. There are only 21 million Bitcoins that can be mined, and it is stated that the last ones can be obtained in 2150. There are currently 18.4 million Bitcoins in the market and the limited supply of cryptocurrencies may support the price surge.
According to the growing number of professional investors, Bitcoin deserves to be considered in a “digital gold” and diversified portfolio.
Skeptics argue that although gold has been used as a means of savings for millennia, Bitcoin has no intrinsic value as it has been used in shopping by few and has not been proven to be a “safe asset”.
Gold has increased significantly this year and its value has increased by 30 percent. However, Bitcoin did even better and gained 65 percent to almost £ 9,000.
Is it a Digital gold?
While governments around the world issue money and increase spending, gold provides protection against inflation due to its limited supply. It also functions as a “safe haven” when investors are concerned about the economy.
Speaking to Telegraph Money, a British fund management company stated that they are considering adding Bitcoin as part of their gold investment to a well-known fund.
According to the fund’s research, Bitcoin can be traded between $ 40,000 and $ 50,000 in two years, in the best-case scenario. One Bitcoin currently finds buyers at around $ 11,700.
Some investors predict that Bitcoin has properties similar to gold and therefore may strengthen due to low-interest rates amid the economic uncertainty caused by the coronavirus.
Bitcoin’s supply is limited like gold. There are only 21 million Bitcoins that can be mined, and it is stated that the last ones can be obtained in 2150. There are currently 18.4 million Bitcoins in the market, and the limited supply of the cryptocurrency may support the price surge.