In particular due to the ongoing hype surrounding cryptocurrencies such as Bitcoin, it seems that a future new currency is being sought around the world. It is true that most central bank currencies such as the euro or the US dollar are relatively stable. Nevertheless, there seems to be a longing for “new money”. At this point, two financial products in particular come up for discussion. Namely, these are bitcoin as the leading digital currency and gold as a precious metal. People who want to invest in Bitcoin instead of precious metal are looking for apps like bitcoin 360 ai legit. Such app can allow them to mine bitcoin and earn money.
Which of these functions can bitcoin and gold have at all?
A serious difference between the precious metal and the cryptocurrency on the one hand and central bank money on the other hand is that neither gold nor bitcoin are circulated by states. In addition, both the precious metal and the digital currency are independent of the banks. Bitcoin has a unit of account function, as gold does.
However only because both the corresponding value of the precious metal and that of cryptocurrencies are measured in central bank currencies.
The exchange function is also given for gold and bitcoin. You receive certain goods or services for both the precious metal and the digital money. As a rule, however, the central bank money is still a kind of intermediate station.
With regard to whether Bitcoin and gold basically have what it takes to become “new money” in the future, both candidates certainly meet the basic requirements. However, this does not automatically mean that gold and bitcoin would be optimal wealth preservation funds.
Gold as a popular asset: The essential characteristics of the precious metal
When it comes to the essential features and properties, there are few similarities between gold and Bitcoin. The first difference is that the precious metal gold does not only have a virtual value like crypto money. Instead there is a real material value due to the physical nature of the precious metal.
Since gold is a very popular and sought-after commodity on the one hand and a scarce asset on the other, the supply is likely to be lower than the demand in the coming decades and possibly centuries. This in turn leads to price stability and is an important prerequisite for the precious metal being optimally suited for wealth accumulation and wealth preservation.