Why is Bitcoin called as Digital Gold?

0 0
The future is digital and its being built now. Dont get left behind.

Gold is valuable because of its store of value. Bitcoin represents itself an upgraded version of gold. (Digital currency and digital gold). Bitcoin would be separated from other cryptos' likening the apex to gold on the cryptocurrency periodic table because bitcoin is the only sure viable store of values in the cryptocurrency periodic table. The more people use bitcoin the more it's value. Its going to be the "single currency” of both the internet and the world (international currency of the world).
Besides, bitcoin has won the digital gold race.

Bitcoin is completely virtual asset, which can be stored and transact electronically only.

Second thing Bitcoin have no physical existence, it's a digital asset which can be accessed via internet only, without internet no-one can access these electronic digital tokens.

So Bitcoin is the firstly invented digital currency, which can also be called as "Digital Gold". Because it has its own specifications as limited supply, halving, forks, method of generation, type of work, algorithm, consensus and most important price against fiat, these factors takes Bitcoin towards standalone position.

Bitcoin is master/prime currency of whole crypto market.

1 comment
If we use analogy between gold and bitcoin then we can understand why it is called so.

1.Store of value: as like Gold, BTC is supposed to be to stored(if txn speed does not increase ) rather than used as medium of exchange. Real world we use fiat currency and in crypto we can use altcoins with lesser txn fee and fast confirmation time.

2.Limited Supply:
BTC has very limited diminishing supply(as like Gold in real world) it's value may go high due to exponential rise in demand due to network effect(proportional to n^2).

3.Mining: Gold is mined from earth crust and difficulty of gold mining is getting difficult due to lesser supply of it. Similarly BTC supply goes on decreasing and difficulty of mining increases exponentially with increase in no. Of miners.finally it reaches near to zero.

4.Universal Acceptance: Gold can be considered universally accepted currency similarly number of people who believe in BTC are very high compared other crypto currencies.

As most of properties of Gold and BTC matches we can conclude BTC as digitalised form of gold as long as people accept it(similar in case of gold acceptance)

Finally it's all acceptance by no. of people.

In a trouble economy gold is suppose to be the currency of last resort. Normal fiat currencies experience significant losses because there is no real value, besides the faith in the economy.

Like gold, Bitcoin is the cryptocurrency of last resort when the market falls. Being decentralized around the world, with several stakeholders (miners, merchant payments, users, developers, Asic chip maker and exchanges), there is a balance of power.

Also bitcoin is the on and off ramp for access to several other cryptocurrencies. So if you look at how may other coins have a trading pair based on BTC. So if the market is falling people a selling currency X and buying BTC. This help stabilize the price within reason.

Because we are living in a digital world and this new era will delete the paper money soon. So in old times one of the most valuable thing was gold, now it is crypto and bitcoin.
Bitcoin is "digital gold" - at least that is what his zealous advocates say.

They argue that this digital name is the 21st century's answer to precious metals, and one day it can replace gold as a big and safe source for investors.
Because of its rising value from rising demand pluas its limited supply. This is very much the same as gold. With very limited supply the price of gold increases because of the demand for it.
Because you mine it digitally and there's a finite amount of bitcoin just like there is gold, and it's valuable.
We have the big gaps between the peoples. Rich people are so wealthy and the poor ones is so poor, they are hungry. So in this new world order everyone has the new hope, which is cryptocurrency. Everyone wants to have some crypto because actually this our our hopes to survive.