For those who are new to Bitcoin and want to understand why it’s a popular choice over Gold, you have come to the right place. Gold, while it has great value and looks amazing when melted down and turned into fine jewelry, isn’t as robust as Bitcoin. You can call Bitcoin, Gold 2.0 or Digital Gold, as its value continues to grow in price.
Their are some drawbacks with Bitcoin, one of the main cons is its high volatility. When the entire crypto market is down, $10,000 to $20,000 can be removed from the value of Bitcoin in a matter of hours. This is normal behavior for Bitcoin as the value always fluctuates.
None the less, hesistancy to invest is completely normal, especially understanding the fact that Bitcoin is still relatively new. Bitcoin came into fruition in 2008. While inexperienced investors can lose money, if you go into Bitcoin with a long term plan, you will most likely to succeed.
Digital Gold – Better Alternative to Gold
In a time of an emergency, you may not be able to access your stores of Gold. Bitcoin on the other hand can be accessed in seconds. As long as you have a crypto wallet and your private keys, you can transfer money anywhere at anytime.
While Gold has to be physically mined by men with heavy equipment, Bitcoin can be mined using computers or ASIC miners. Allowing to generate your own wealth passively. Bitcoin does have scarcity. Once all 21 million Bitcoin has been mined from the blockchain, the value of just 1 Bitcoin will sky rocket even further. That is why most analyst predict 500k or more per Bitcoin within the next 10 to 15 years.
One of the great benefits of gold is owning it physically in an event of a crisis on a global scale. If the world loses all it’s power and we head back to the stone age, Gold would be the currency that everyone would fall back on. If the powergrid, cellphone towers, and the internet were to go down, Bitcoin would become useless.
Rewards and Savings
Because of the growth and popularity of Bitcoin, many new and existing companies have joined the wave. Banking institutions, credit card companies and peer-to-peer payment providers have all adopted Bitcoin. Because of that, you the investor has the opportunity to purchase Bitcoin at the click of a button. While gold is a great store value, you can’t earn rewards on it.
Their are apps that reward you in Bitcoin for spending your fiat dollars online or physically in stores with your debit card. And others that will round up your spending to the nearest dollar and convert your spare change into Crypto. A few notable apps that offer these capabilities are Cash App, Fold App, and RoundlyX.
Cash App has made it easier for users all over the world to purchase Bitcoin. You can set auto-invest where you can automatically purchase fractions of Bitcoin daily, weekly, or in monthly intervals. Not only does Cash App allow you to purchase Bitcoin instantly, they provide you with the option to add a “Boost” to your purchases. If you spend x amount of dollars, you get a percentage back in Bitcoin.
Fold App is the leading Bitcoin Rewards app available today. Once signed up, they provide you with a debit card that you can setup direct deposit to. Everytime you use your debit card, you get money back in Bitcoin. Fold also gives you the opportunity to increase your rewards by doing daily wheel spins. With each spin, you have the chance to win 1 million satoshis (fractions of Bitcoin).
RoundlyX is an app that is similar to the Acorns App where you can invest your spare change. While Acorns allows you to invest your spare change into fiat currency, RoundlyX will roundup your purchases to the nearest dollar and convert that spare change into crypto. This method has it’s benefits, especially if your a heavy spender. Your crypto portfolio will continue to grow on auto-pilot.
Protection Of Your Money
One of the main concerns of having a bank account or debit card is that the financial institution that is charge of your assets can freeze your funds at anytime. Similar to fiat, with Gold, if you don’t physically have it in your possession and you have a financial institution storing it for you, you have to make sure that your accounts are always in good standing.
With Bitcoin, as long as you have a decentralized crypto wallet, your funds stay with you at all times. You can access your money anytime and anywhere in the world. If you really want to protect your Bitcoin, purchasing a cold storage wallet is the best option.
Speed and Convenience
If you wanted to convert all of your Gold into fiat currency, that would take you some time. If a bank is storing your gold, you would have to travel to the bank, speak with a representive, wait awhile for the approval, and walk out the bank with cash in hand. Similar concept if you have gold that you want to sell for cash at a pawn shop.
With Bitcoin, the Digital Gold of the world, you can instantly convert your crypto into cash in a matter of seconds. You have a wide range of options to do so. Apps like Cash App allow you to convert your Bitcoin into dollars and spend it with a debit card. You also have the option to withdraw the converted cash directly into your bank account.
Unfortunately you can’t withdraw or convert Gold from an ATM, but with Bitcoin you absolutely can. As crypto adoption continues to grow around the world, more stores and locations are installing ATM machines where you can withdraw your Bitcoin into cash.
Another plus about Bitcoin is the ability to move around the world with it on your phone or in your cold storage wallet. With Gold, that’s not so easy. Gold is heavy, bulky, and cumbersome. Unless you are wearing it as jewelry, converting to cold cash on the spot to be used in an emergency is unlikely.