Bitcoin (BTC), the largest cryptocurrency by market capitalization, has often been compared to Gold, the ancient precious metal. In terms of longevity, the cryptocurrency is nothing close to Gold.
However, the fast growth of Bitcoin has attracted tons of attention, making its influencers tag it “digital gold” as just corroborated by Gemini exchange Co-founder, Cameron Winklevoss.
Cameron Winklevoss Says Bitcoin is Open-Source with Boundless Possibilities
The Gemini exchange Co-founder, Cameron Winklevoss, has recently pointed to the features of Bitcoin expected to aid its growth beyond the worth of Gold in the global market.
In the tweet, Cameron, the identical twin brother of Tyler, averred that the fact that Bitcoin is open-source software makes its possibilities boundless.
He furthered that the market capitalization of Gold has always been the target of the digital currency. He, however, concluded that such target is now the least for Bitcoin.
He said, “Because Bitcoin is open-source software, its possibilities are boundless. I often talk about gold as a target market cap, but that’s really just the beginning…it’s digital gold, source of truth, etc…”
Consistent Comparison of Bitcoin and Gold
As earlier mentioned, Bitcoin is also known as digital gold. This is the general belief in the crypto sphere. Actually, Bitcoin operates on a decentralized open-source network and powered by a technology called blockchain.
Bitcoin came to existence in 2009, after the economic crisis that hit the world in 2008. Back then, BTC started from a price as low as zero, but things have turned around for the cryptocurrency within 10 years of its emergence.
The decentralized nature of BTC aids its advancement. This technology behind its day to day transactions is the proof of its decentralization. Unlike Gold, Bitcoin has no weight and does not occupy any physical space.
The price of BTC has been fantastic when compared to other precious commodities. At the time of writing, 1 Bitcoin is trading at $8,031.34.
Despite the lasting stagnancy in Bitcoin’s price after a huge pull back, the cryptocurrency remains the most profitable asset in the year 2019.
On the other hand, Gold is an ancient precious metal, and its history dates beyond the present generation. It has accrued lots of worth since the day of its discovery. Its supply is limitless due to its natural charactaristics.
This is an advantage Bitcoin has over Gold. The digital currency has a limited total supply of 21,000 BTC, and its 18,000th was mined about 3 days ago, making the leftover supply be 3 million BTC.
The aforementioned estimation could initiate the scarcity of the digital asset at a point when supply plummets and demand skyrockets. Economically, when demand is higher than supply, it makes the price of the affected commodity upsurge.
The above estimation sums up the hope of cryptocurrency enthusiasts and Bitcoin maximalists. They claim Bitcoin will become an asset to beat in the global market at no distant future.