In The Age Of Bitcoin, Are Gold Fundamentals Still A Good Decision?

Bitcoin, the first cryptocurrency, still maintains its number one position years after its creation. It uses block chains which is a shared communal documentation of transactions in the creation and tracking of new types of digital tokens. A digital token is one that can only be created and shared depending on the agreed-upon network rules.

Bitcoin led to the emergence of digital currency which has enhanced transaction speed. It does not exist in physical form. When you have a bitcoin, your worth is determined by collective agreement between any computers that are on the bitcoin network. Also, the legitimacy of the creation of your bitcoin by the bitcoin “miner” matters a lot.

In case you want to own this cryptocurrency, you can either purchase from someone else or mine some on your own. The problem with being a miner is that you have to invest in internet and also electricity bills. As a miner, you have to build blockchains. You purchase them from another person using usual money normally via bitcoin exchange.

There are plenty of reasons why bitcoin still stands to be better than gold fundamentals. Below are some of them.

1. Digital economy explosion

Compared to the past 2 decades, the economy has become more digitized. For a majority of the percentage, digitalization of things leads to the growth of the economy. Technology is not moving backward. The emergence of bitcoin cryptocurrency has been made possible by the technological changes. Moreover, people want to make transactions in the comfort of their homes. With bitcoin, one can get to make certain purchases and also watch their investments grow at the luxury of their home.

2. Millennial market

Millennial follow the current trends. They are the history’s majority of generation. It also turns out that they do have a lot of cash. They are the biggest buyers of online things and ticket items. They are eager to be in possession of the bitcoin cryptocurrency. According to a survey that was recently done, 4%of the millennial own crypto currencies and 30% of them prefer them to bonds.

This generation has the right tools to enable them to invest swiftly in bitcoin. They have gadgets that can readily connect to the internet and also internet connection services.

3. Increased security

Security problems have come along with digital boom. There are people whose bank accounts have been hacked and all the cash was drained. This is due to the breaching of the security barriers set up by the banking companies. Bitcoin has addressed the security issue. There is an observation that where there is the tendency of peoples’ bank accounts being hacked, bitcoin is performing very well.

Conclusion

A lot of people have purchased bitcoin and this has proved to be a trustworthy investment. When the convention cash is fluctuating, the cryptocurrency may be stable or even gaining in value. Even though there have been instances when bitcoin has decreased in value, it has always risen back to its dollar value.

In these harsh economic conditions, transferring of gold assets down to the next generation may not be possible. Bitcoin has survived for ten years now. The pickup by the upcoming generation shows that there may be an increased probability of them preferring cryptocurrency to gold fundamentals.

New York stock exchange announced the building of Bakkt, which is an ecosystem for cryptocurrencies. This is a big step in bitcoin mainstreaming plus other cryptocurrencies. Importance of this is that more investors will be attracted by the preference –free and covenant-free capital, at a reduced cost.

The only drawback with bitcoin compared to fundamental gold is the mining process. The process consumes a lot of electricity. The high power bills are leading to high costs for the clients who want to have more of this cryptocurrency.

 

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