Chep
1 min readApr 10, 2023

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It's true that gold has a long history as a store of value and a hedge against inflation and economic uncertainty. However, comparing gold to Bitcoin might not be an entirely fair comparison, as they serve different purposes and have unique characteristics.

Firstly, it's important to consider that Bitcoin, as a digital currency, offers several advantages that gold does not. Transactions are fast, borderless, and can be done with relatively low fees. Furthermore, Bitcoin's digital nature means it's easily portable, divisible, and can be securely stored without the need for physical space.

As for the concern that Bitcoin could disappear if miners shut down due to high expenses, this overlooks the Bitcoin network's built-in difficulty adjustment mechanism. When mining becomes less profitable, the network adjusts the mining difficulty, making it easier for miners to find new blocks. This self-regulating mechanism helps maintain a balance between the cost of mining and the rewards earned, ensuring that the network continues to function even during challenging economic conditions.

Moreover, Bitcoin's scarcity, with a maximum supply of 21 million, is designed to emulate the scarcity of precious metals like gold. This built-in scarcity has led many to view Bitcoin as "digital gold," providing a store of value that could potentially appreciate over time.

It's also worth noting that in fiat terms the market for BTC is still in its early stages, with many developments and innovations yet to come. While gold has a well-established history, the potential for Bitcoin to revolutionize finance and technology should not be underestimated.

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Chep
Chep

Written by Chep

I've decided to write everyday for the rest of my life or until Medium goes out of business.

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