Cryptocurrency has grown quite a bit in the last year. Since Bitcoin’s inception in 2009, it has increased in value more than 60 percent. In the same time period, the price of gold has only risen 6 percent. While gold does serve a purpose, and makes for a great investment, crypto has proven to be more reliable. It is more democratic than gold, as it does not have any fundamental value at all. The only purpose it has is to serve as a store of value. That is what is so attractive about cryptocurrency.
The second great factor that makes crypto valuable is its number of transactions per day. Whereas only 150,000 transactions were made on the first day that Bitcoin was available, 1,000,000 transactions occurred on the first day of bitcoin exchanges around the world. It is only one of the many factors that make cryptocurrency much more valuable.
Is Cryptocurrency The End Of The Gold Market?
There have been discussions about whether gold is a good investment at all. There have been some who claim that gold has not been anything more than a paper market where people gamble with their money. Gold does have tremendous intrinsic value. A lot of that value is found in its high production costs, and its scarcity. But there are those who believe gold is completely worthless, and they are now looking at the cryptocurrency market as a possible market for their gold.
This can be detrimental to the value of gold, but it is not yet widely accepted. Cryptocurrency was for decades something that was highly misunderstood. But now that it has entered the mainstream, it is a much different story.
Perhaps gold can only reach its full potential when people truly know what it is and why it is valuable. This is where cryptocurrency has the potential to change the world forever.
Gold and Cryptocurrency Share the Same Enemy
People still consider gold the greatest investment. However, the world is changing, and gold is simply not as secure anymore. And it is not just about gold, as there are other precious metals that have similar values. There is no doubt that gold is much more secure than paper currency, but there is no need to confine it solely to the gold market.
Gold is no longer considered a commodity. People in the present world are now seeing gold as a currency. Cryptocurrency is similar, but not quite as secure as gold. However, if we see gold as a currency, we can also see gold as a store of value. This is another reason why gold is not so secure. Cryptocurrency has the ability to act as a store of value, and that is a tremendous asset.
Digital Asset Business
There is another major difference between gold and cryptocurrency. Cryptocurrency is completely different from gold. Gold does have a role as a commodity. It serves as money in some of the places where gold is readily available. However, it is not a true store of value because it is only ever worth the amount that it is worth at the time. Cryptocurrency is a completely different story when you think about its application through the likes of MPC coin, in the effective management of digital assets. You can’t run a digital assets business using physical gold…well, you can, but not nearly as effectively as you would with crypto.