The common chatter among the finance and other relevant industries is that the days when gold was the standard for reserves and value are about to be over, and it will no longer retain its value as cryptos like BTC and ETH are becoming more and more popular, gradually shaping into the standards of value in the future.
The fact that digital gold has already made a lot of progress and has done a lot of damage to the currently valuable metal has convinced many analysts from Bloomberg Intelligence to speculate that BTC and other crypto assets are bound to replace gold and are currently doing so at a very steady pace.
Gold is being replaced by BTC in many investor portfolios as the value reserve
The existence of the common expression like a gold tier or gold standard was suggestive of the fact that gold is an asset that has retained its value over a long period of time, and it has been known to serve as the best form of asset that the world has ever witnessed. Traditional currencies were fixed against the amount of gold reserve they entailed, and it is still being used as a hedge and investment over an economic disruption or inflation.
This practice, however, was conducted before the creation of BTC and other crypto assets. Almost all the characteristics that gold possesses and makes it valuable are present in Bitcoin and even more in some areas.
Advantages of Bitcoin over Gold
The most attractive and important attributes of BTC include the fact that it is secure, it is a transparent asset, and it has 21 million Bitcoins as a fixed cap.
Bitcoin has a lot of other advantages over gold, such as it is just in its beginning stage, and it will be updated and gain more value over time while gold will remain the same metal as it is today. Other than that, BTC is virtual and can be transferred easily while it is very costly and difficult to transport gold when it is in a large quantity. Also, BTC is more transparent and scarcer than gold which gives it a huge edge over gold or any other precious metal.
The only thing that is holding BTC back right now is the volatility of the cryptocurrency, which is not the case for gold.