Welcome to eachpennycounts.com! A place, where ignited minds come to get healthy, wealthy, and wise!
If you have not subscribed to our website, then you are missing out.
Bitcoin is hot property, and we’re confident it’s only going to get more desirable of all the things you’ll be hearing about it.
One is that bitcoin is gold 2.0.
There are more than 10 million google searches about it.
It’s been said by the founder of Gemini cryptocurrency exchange Tyler Winklevoss, you may also remember him as a character in the movie the social network, where he added, “whatever the reasons for investing in gold we think that bitcoin matches or beats gold across the board we’re about to show you why.”
One’s around a decade old.
The others have been around since at least the ancient Egyptians, but we’re going to break it down for you and explain what bitcoin has in common with gold and how it’s even got a few points where it beats gold’s get to it.
Without wasting any time let’s dive into the topic.
First off, a few plus points that bitcoin has over traditional currency that it shares with gold the biggest is, it is inflation-proof.
The problem with conventional money is that when there isn’t enough to go around, governments start printing it like crazy.
It seems like an easy fix except for one problem.
More money is chasing around the same quantity of goods and services, and that isn’t good.
It means that money can now buy less it’s gone down in value, what we call inflation and if you’ve got money in the bank or stocks or bonds, guess what that means?
You’ve become poorer without even spending a penny of it.
For centuries gold has gotten around that problem, and bitcoin does as well; there’s one big reason for this.
Courtesy – YouTube
The great thing about gold and bitcoin is you can’t just make more of them.
With money, governments can print more on worthless bits of paper, but when it comes to gold and bitcoin, not a chance with both.
The amount of gold that can go around is limited by the earth’s chemical composition.
With bitcoin, the answer isn’t in any chemical properties, but with the source code, it’s written in.
There’s a limit to the number of bitcoins that will ever be released. That is 21 million.
So far, around 18 million bitcoins are in circulation.
The closer the number gets to 21 million, the slower they’ll be released.
It’s estimated the last bitcoin won’t be out until 120 years from now.
Courtesy – YouTube
We all have at least an idea of how gold is extracted using mining equipment.
But what about bitcoin?
Well, like gold, it’s also mined, Yeah, kind of like gold.
It’s a quite different process, but mining is the word that’s used, and bitcoin mining involves high-powered computers or networks.
The bitcoin software throws complex math equations at them, and when they solve them, bitcoin gets released.
Remember, these are super high-powered computers.
Sorry to tell you but try to do it with your home pc or mac, and you’re not going to have much luck.
Still, bitcoin mining might not have much in common with gold mining on the face of it, but both make it difficult to put them into circulation, and with both, it means the market won’t be flooded, which means they won’t be devalued.
Courtesy – YouTube
So, if traditional currencies lose value over time but gold and bitcoin don’t.
What does that mean? Yep, golden bitcoins steadily go up as the dollar, the euro, the yen, the pound, or any currency doesn’t.
Genuine gold has a heck of a lot more history than bitcoin.
If gold wins for history, the last few years have shown that bitcoin beats gold hands down, somewhere else in price application.
Look at the previous five years. If you’d invested 100 dollars in bitcoin at the start of 2016, you’d now have 4,300.
Yes, bitcoin also crashed in early 2018.
But the latest we saw it about reached the same peak it was pre-crash.
We think it’s a great indication that even if bitcoin is volatile, it’s on a strong upward trend that isn’t stopping anytime soon, one that gold can’t come close to.
Courtesy – YouTube
For investors out there, we’re not saying you should invest in one thing.
The key is to diversify.
Hedge your bets in case one part of your portfolio goes down.
Buy stocks too, maybe index funds for safety mix them up with some commodities like gold, and we’re recommending you buy some crypto and bitcoin.
The so-called king of crypto is as safe a bet as they get.
Traditionally, gold has been a crucial part of any well-diversified portfolio.
Nowadays, bitcoin and other crypto are coming in and moving into its space as a serious alternative, and once again, there’s a good reason why.
Courtesy – YouTube
Bitcoin, like gold, is a haven for investors.
Intelligent people know that economic uncertainty will happen sooner or later once the government print money like crazy and otherwise stable companies go into trouble. Yep, like the times we’re in now.
Intelligent people have known for a long time that if they have gold, it will hold its value when everything else comes crashing down, but when the markets go crazy, everyone will start buying gold because it’s safe.
When they do that, gold doesn’t just hold its value, it goes up, and in 2020, bitcoin is doing just that.
Stocks have been going down across the board apart from tech stocks which went up, then the vaccine came along, and suddenly tech stocks did worse.
Everything else did better, but all the way through, gold’s been intense and bitcoin even more robust going up and up and more than doubling over the year, and that is why they’re called safe-havens.
A few other specifics make bitcoin so great first up, how verifiable it is?
In other words, how to prove it’s legit now?
We’re not saying it’s easy to forge cash, but watch a few crime shows on TV, you’ll know that people are doing it.
With gold, as we said, you couldn’t just create it out of thin air. Still, you can mix it with less valuable metals and then push up its value.
Still, thanks to blockchain, the technology that bitcoin is built on bitcoin, beat traditional money and gold.
Every transaction that’s ever taken place is recorded on an open-source ledger.
That means electronic records are kept on the computers of tens of thousands of users, who voluntarily store them, and altering records on that many computers is almost impossible. This means bitcoin is as legit or verifiable as it gets.
Courtesy – YouTube
Something else that makes currencies valuable is being portable easy to carry around and stored.
Traditional money is very mobile. Whether it’s as cash or in the bank, you can access it with a card gold.
Not so much, it’s heavy and bulky and not so easy to store, let alone carry around with you.
Sure, you can invest in gold without ever seeing it, but that means you’re paying somebody to keep it in a super-secure vault and guess what? There are storage costs for that.
Bitcoin gets the best of both worlds.
Like gold, it doesn’t suffer from inflation, and like money, it’s portable because it’s digital.
All you need is an internet connection, and you’re suitable to store it send it around like an email or access it whenever you want or need it.
Courtesy – YouTube
Here’s another measure of how useful something is for investment or spending.
Can you divide it into smaller amounts with stocks?
If you want to invest you sometimes have to buy a whole stock, which could be hundreds or thousands of dollars investing in bitcoin.
You can start small because there are lots of subdivisions the smallest is called a Satoshi, which is a hundred millionth of a bitcoin that’s about a fiftieth of a cent right now.
So, bitcoin is more portable than gold and very divisible to put those together, and you get something that’s ideal for making transactions, multi-million dollar ones, and just doing your groceries.
The fact that gold isn’t very portable or easily divisible, is one reason why we don’t pay for things in gold and why cash became king.
Still, bitcoin gets around those problems, and growing numbers of companies like Microsoft, Norwegian air, AT&T, virgin galactic and McDonald’s accept it as payment. There’s still resistance because it’s volatile.
Still, with time we’re sure that will wear off.
Shortly, we’re going to see more and more everyday transactions in bitcoin, something that’s never been practical with gold.
And Explicit Wealthers, just in case you haven’t heard, we’ll take a moment to tell you, exactly how you can take advantage of this enormous innovation.
A little while back, we decided to create the best resource out there to guide you step by step through everything we learned about bitcoin and blockchain from scratch. It’s called bitcoin essentials.
In it, you’ll learn how the technology works, how to use it, how to buy bitcoin safely and how to store it.
Just go to explicitwealth.com, believe us, when we say this is something you don’t want to miss out on, so sign up now and become part of this revolution in technology and wealth.
There’s indeed no big robust institution monitoring bitcoin, but it’s incredibly safe as well as being verifiable and practically impossible to forge.
It’s equally challenging to steal or make a transaction without the owner’s consent.
Remember, we said hundreds of thousands of users control the data.
If you’re going to tamper with it, you need to fiddle with all of those computers or at least the majority of them.
And as you or any potential coin robbers, don’t even know where those computers are.
That means it’s quite a bit harder than say robbing a bank.
Unlike currencies, governments can’t touch bitcoin.
The price is determined by supply and demand, much like gold has been for centuries, except bitcoin is a bit more decentralized than gold. Because central banks are hoarding gold to back up their currencies and large investment banks.
It’s in their power to fix the price of gold. In 2014, Barclay’s bank was fined for stopping traders from manipulating gold prices.
In 2018 a JP Morgan trader pleaded guilty to abusing metal markets, and Forbes has stated that when it comes to fixing gold prices, it’s not a matter of if, but of how much.
To set up a bank account or invest in shares, you need to fill out many forms and hand over identification to trade gold through a broker.
You need to do the same with bitcoin, but to buy it in its pure form, you can do that anonymously because of the way blockchain works.
Because bitcoin is pseudonymous, that means you don’t give your real name.
Governments can’t know who owns it. They can’t confiscate it.
This feature was built into it from the start.
It’s anti-authoritarian by design with worries about surveillance and authoritarian governments in some parts of the world. This isn’t such a bad thing.
No surprise, bitcoins make big waves in countries with a lot of political turmoil like Iran and Venezuela, and yes, in those countries, it’s also seen as a haven from rising inflation.
Gold has all kinds of uses here at Each Penny Counts.
Being the luxury channel, we’ve done quite a few articles of all sorts of things that contain gold, but right now, let’s stick to the topic.
Actual bitcoin doesn’t have uses other than storing or transferring wealth, but its technology is based on the blockchain.
More and more companies are using blockchain from Pfizer to Walmart to record data like stock parts from suppliers, track anything from food products to vaccines, and look out for blockchain and recording property ownership and voting where it could become helpful in the future years to come.
We are now in history where a new generation is taking more of a role in how our world works.
This generation can see how traditional money is flawed 2020 was a great demonstration that they’re on the lookout for an alternative, and historically gold has been that alternative.
Now we’re not saying, it’s going to stop being an alternative completely. But for this generation that’s used to doing everything online, given the choice of gold, which works the same way it’s done for centuries or a way of investing and making transactions that are high-tech secure confidential and decentralized.
Which do you think this generation is going to go for?
Yep, we think so, too it’s another reason why bitcoin and possibly other cryptos will challenge gold and keep on getting stronger.
So, what do you think is Cryptos most significant plus point over gold?
Let us know in the comments now. Here’s your bonus for today since you stuck with us until the end.
The total value of crypto is still only a fraction of the importance of gold, and that’s another reason it’s going to go up further.
Currently, there’s around 7.5 trillion dollars’ worth of gold in the world and just 230 billion dollars of crypto, of which 160 billion is bitcoin.
Do the math, and you’ll see the entire value of crypto is still only three per cent of gold.
Now it’s true that some of the demand for gold is for things that crypto can’t satisfy, like luxury items you can’t melt down some bitcoin and make a pair of earrings, sure.
Still, a considerable amount of that wealth in gold is in investments, and as we’ve seen, that’s a space that bitcoin is rapidly moving into.
It’s going to move into that space more and more that means the value of bitcoin and other cryptos still has a lot of growing to do to take up a good share of those 7.5 trillion dollars in gold’s worth, and that’s one more reason why now is a great time to invest in it.
We hope you enjoyed this article, if you did, be sure to hit that like button and don’t forget to subscribe if you haven’t already.
If you have not started trading in cryptocurrency, then what are you waiting for?
Your money will be very safe.
We have been using both platforms for 2 years and never ever faced any issue with respect to crypto trading.
Please “Like” and “Subscribe” to our website, so that you never miss our future articles. We keep updating them at regular intervals to ensure that you get to know the “Explicit Facts of Life”.
If you like this content, then please “Share” it with your family and friends.
Sharing is Caring.
To join our exclusive club, please click here.
Now before, you leave our website, we are curious.
Do you agree with our article?
Do you have more suggestions for us to include in this article?
Share your story with us in the comment section below…. we will be right there with you.
This article is intended for any person looking to work online and needs to follow all legal requirements set out in their individual countries. This article is not intended or made for kids in any way. If you have any questions, please ask in the comments or contact us at email@example.com!
Earnings Disclaimer. This article is for educational purposes only. We have taken reasonable steps to ensure that the information in this article is accurate, but we cannot represent that the website(s) mentioned in this article are free from errors. You expressly agree not to rely upon any information contained in this article.
Affiliate Disclosure. This article and description may contain affiliate links, which means that if you click on one of the product links, we’ll receive a small commission. We won’t put anything here that we haven’t verified and/or personally used ourselves.
#bitcoin #blockchain #blockchaintechnology #youtube #google #facebook #money #explicitwealth #wealth #cryptocurrency #crypto #gold #market #economy #finance #explicitideas