Comment: Bitcoin vs. Gold

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Bitcoin vs. Gold

Now we can observe a very amusing situation: the government has gold and those that don’t possess gold have bitcoin. However, bitcoin is not just a virtual counterpart of gold. It is something more convenient and modern. The global transition to bitcoin will bring benefits for everybody, except for those that possess gold. I’d like to enumerate five key advantages of bitcoin over gold:
- Bitcoin is a decentralized currency. It can’t be controlled from outside, so the situation like this is essentially impossible.
- It’s difficult to speculate because the economy based on bitcoin is transparent.
- It’s convenient to buy goods and make transfers.
- There are no intermediaries and controlling organizations.
- High anonymity and security.

Gold don’t have all the above features:
- Gold and forex reserves are kept in one place, to which no one has access. In majority of countries it is prohibited to keep gold at home or, at least, there are many limitations to it.
- It’s very easy to speculate with gold, because all reserves are controlled by a rather narrow group of people.
- Gold in pure form is not suitable for exchange and it’s necessary to make paper currencies which are inconvenient. There is no need in extra abstractions.
- A load of intermediaries amass a fortune from scratch and 99% of gold reserves are once again controlled by a very narrow group of people.
- There is no anonymity and security with gold. Moreover, it’s almost impossible to exchange gold in pure form.

In my opinion, future belongs to bitcoin.


Those who expect to reap the blessings of freedom, must, like men, undergo the fatigue of supporting it. ~Thomas Paine