While fiat currencies are continuously running into problems, cryptos like Bitcoin are gaining more traction and are almost overtaking fiat. More people are now more receptive to Bitcoin than they were just a few years ago. Basically, this acceptance is as a result of Bitcoin’s popularity and the evident power of its cushioning against the many issues that plague the fiat systems.
Bitcoin is the pioneer crypto, and many people have grown to love and adopt it. It has also been touted as a credible store of value that could soon out-do Gold. For starters, Bitcoin seems to have all the qualities relative to Gold as a store of value.
In fact, at least according to various respected crypto players, Bitcoin will soon be more potent than Gold. The latest high-profile argument in Bitcoin’s favor comes from Coinbase, a well-respected and popular crypto exchange. The exchange shared this insight in a rather elaborate tweet.
In May 2020, #Bitcoin will experience its third “Halving.” Bitcoin is a digital asset with a fixed & predictable supply, unlike dollars. Bitcoin is designed to be scarce, like gold. Here’s what that means and why it matters in historical context: https://t.co/CLXp7Okb04
— Coinbase (@coinbase) February 7, 2020
Bitcoin Is Designed To Be Scarce
Just like Gold, Bitcoin is designed to be scarce, a peculiar aspect that has worked well to maintain its high value in the market. For one, Bitcoin’s supply is capped, and its progressive supply is fairly predictable. The total supply is capped at just 21 million coins, and every block mined, 12.5 Bitcoins are released in the form of a reward to the miners.
Every few years, the Bitcoin network undergoes a halving event whereby the reward is halved. The network is expected to undergo its 3rd halving in May 2020, after which the reward will be reduced to 6.25 BTC per mined block. This will ultimately increase the crypto’s value as its rate of supply reduces and demand rises. However, in the case of Gold, it’s hard to determine the total supply in the world.
BTC Is Like Electronically Transferable Gold
While Bitcoin is comparable to Gold as a store of value, its advanced market system makes it a serious competitor to Gold. For one, Bitcoin can be transferred securely, easily, cheaply, and very fast via electronic means.
That’s not the case with Gold since the parties involved have to plan for the physical security, cost of transport, and delivery of the purchase. These factors have led many to believe that, indeed, Bitcoin will overtake Gold in the near future.
The post Bitcoin Is Digital Gold And The Upcoming Halving Will Make It More Potent As A Store Of Value – Coinbase appeared first on ZyCrypto.
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