Bitcoin gold battles in the race for value – Tradingvief news

For several centuries, gold captured the societies of their rarity and value. Old civilizations protect them as decoration and symbol of wealth and power. The Egyptians buried their pharaohs with golden artifacts, while empires such as Roman, Persian and Chinese gold coins as a currency. She made her scarcity and beauty very absolute for decoration and trade.

Golden Standard: The basis of stability

In the nineteenth and twentieth centuries, the global financial system relied on the gold standard. The currencies have been linked to gold reserves, which limits money printing and supporting cash stability. The Bretton Woods agreement later reformed the US dollar-other currencies-to gold, making it essential for the post-war system.

By the early seventies of the last century, inflation and the need for flexibility ended. However, the central banks and private sector holders kept gold as protection during crises and inflation.

Bitcoin ascension: “modern gold”

In 2009, Bitcoin appeared as another form of value storage, created by a mysterious character or group known as Satoshi Nakamoto. Unlike the traditional currency, Bitcoin works on the decentralized Blockchain – the international professor’s book keeps by a network of computers. This system is inherently free from the control of the government or central banking, and instead depends on the methods of encryption to verify the authenticity and registration of transactions.

Bitcoin is one of its most prominent features: only 21 million bitcoin can be created. This fixed cover has indicated Bitcoin as “digital gold”, which corresponds to the role of its predecessor in the consolidation of national currencies. Unlike material gold, Bitcoin offers unique advantages such as pregnancy and division.

You may find interesting in Financemagnates.com: encryption rises to $ 3 trillion, artificial intelligence turmoil, and American policy transformations: 2025 investment expectations.

Bitcoin advantages on gold

Gold, although it is historically reliable, has restrictions aimed at Bitcoin to address:

Transportation: The transfer of gold is expensive and slow, while bitcoin transfers across the border take minutes with low fees.

Divide: Bitcoin can be divided into small fractures, which allows precise transactions that are not practical with gold.

Transparency: Blockchain records publicly, which provides larger transparency than the global gold market.

Storage: Gold needs safe cellars, while Bitcoin can be stored digitally, although cyber security is still a major concern.

Bitcoin’s increasing popularity

Bitcoin is popular with its position as a “hot commodity” today. Adoption spread in various sectors:

Main adoption: large payment processors, online retail, and even brick companies and mortars now accept Bitcoin.

Inflation fears: Bitcoin investors use hedging against inflation, especially when governments reduce their currency by printing excessive money.

Institutional participation: The major financial institutions such as hedge funds and asset managers allocate increasing parts of their portfolios to Bitcoin to provide credibility to the assets category.

The attention of the media: the volatile price movements and the stories of the first adopters who have become rich keeping bitcoin in the eyes of the public, which sparked interest among traditional investors.

The role of Microstrategy in the adoption of Bitcoin

Microstrategy’s Public Business Company has emerged as a major player in Bitcoin adopting. During the era of CEO Michael Celor, the company turned large parts of its money into Bitcoin, noting concerns about the decrease in the value of the Fiat currency. This step not only attracted the attention of the media, but also inspired other companies to integrate Bitcoin into their treasury strategies.

Getting the return with bitcoin

Unlike material gold, Bitcoin provides ways to generate negative income:

Ending platforms: Bitcoin can gain benefit when depositing them on the platforms lend to borrowers.

Warmed loans: Holders of FIAT or Stablecoins, with returns depending on how to use borrowed funds.

Defi Funding: Bitcoin can be placed in decentralized applications to earn fees by providing liquidity, although the risks of the smart nodes and the market apply.

These options give bitcoin holders not available with gold.

The legacy of gold, the future Bitcoin digital

Gold has always been a safe haven and a valuable store, with an undeniable historical reliability. In a digital world, Bitcoin offers a convincing alternative, often called “digital gold”. It participates in the scarcity of gold, but it adds pregnancy, division and transparency.

However, Bitcoin is still very volatile, and behaves like the commodity more than a stable currency. The fluctuations of their prices make it more suitable for long -term investment. As always, due care and tolerance with risks is necessary.