Bitcoin is currently one of the most favored assets by investors. Even so, many people believe that Bitcoin will soon overtake gold as a core asset in the future.
1 – Bitcoin Basics
Bitcoin is a cryptocurrency that exists as open source software and was born in 2009.
Bitcoin transactions are verified, and the record of those transactions is maintained in a decentralized way, meaning that it is not overseen by governments or financial institutions. Bitcoin’s value is largely created by individuals. Also, the limited supply is part of the inflated Bitcoin’s value. The biggest advantage of this cryptocurrency is that it can become a place to store money during times of economic downturn.
2 – Gold
What happens to Bitcoin today is the same as what happened to gold in the past.
Although gold was once traded as a tangible currency, the value of gold in the stock market is no longer tied to its industrial value as it once was. In fact, gold still plays an important role in the financial markets. Of course, it is always one of the top choices for investors when the economy is faced with inflation.
However, the rise of Bitcoin in recent times has threatened gold’s standing. Currently, many experts believe that gold is being traded on sentiment, not tangible values.
3 – The potential of Bitcoin
Because Bitcoin is an intangible asset, a lot of people are still quite vague about the concept.
With gold, you will easily recognize the value and volume of transactions because it is a tangible asset. The same doesn’t happen with Bitcoin. It is a type of property that resides on a computer screen. Even so, this cryptocurrency possesses enormous growth potential. Many argue that the lack of intrinsic value makes it difficult for Bitcoin to gain widespread recognition. However, the truth has proven the opposite when the lack of intrinsic value turns out to help Bitcoin have more potential to grow than gold because there is nothing that can completely dominate this market.
Bitcoin is gradually gaining recognition from governments of many countries as well as large corporations. Maybe many people have yet to put their faith in this cryptocurrency, but it is still the driving force for transactions at the moment. Even so, many exchanges have allowed Bitcoin to be traded openly.
Experts believe that adding Bitcoin to a portfolio will give more people more opportunities. When Bitcoin explodes, the mass market can also benefit from Proxy. Therefore, Bitcoin will definitely occupy an important place in portfolios.