A recent report issued by the World Gold Council indicated that the world is demanding hard money over fiat currencies. This recent demand paves a way for Bitcoin because it is a harder form of money than most precious metals out there.
About 61% of the participants in the study indicated that they trust less in fiat currencies than gold. Gold has been believed to be a scarce metal and the only advantage it has over Bitcoin is time.
A COMPREHENSIVE UNDERSTANDING OF THE SHORTCOMINGS OF FIAT CURRENCIES IS SHOWN BY WGC REPORT
In their recent report, the WGC asked 18,000 participants around the world for their preferences when it comes to investments. Their answers indicated that one of the most common forms of investment around the world is gold; which was in third place after savings accounts in first place and life insurance in second place. Bitcoin, which is one of the many cryptocurrencies in the world, ranked 10th on the investment preference table.
However, it is important to bear in mind that it may be too early for people to trust in the long-term value of Bitcoin. The conclusion of the report drafted by WGC indicated that many people around the world display a high level of distrust when it comes to fiat currencies.
About 61% of the 18,000 participants indicated that they trusted fiat currencies less than they do precious metals. On the other hand, 67% of them claimed to believe that gold is bulletproof from the inflation of the instability of currencies. One of the reasons why gold has more people’s trust than fiat currencies is that it has been around longer than any of them. However, Bitcoin represents a harder form of cash. Want to learn more about Bitcoins Click here.
The scarcity of gold and the difficulty in forging it led to its use as a monetary unit. However, the scarcity of gold was called into question by recent reports. These reports suggested that gold is not as scarce as many think. There are many deposits of gold in space and on Earth itself. The overall scarcity of gold will massively drop once space exploration and mining permits people to tap into these resources. It seems the high demand for gold for jewelry purposes will not be enough to absorb the sudden availability of gold in the market.
However, there will be never more than 21 million bitcoins in the market at any given point in time. This fact gives Bitcoin an edge over gold as a harder form of money. Transportation and storage are also a few of the many advantages that make Bitcoin stand out as a hard form of money. Bitcoin does not need a vault to be safe and its transfer speeds between two extreme locations around the world at simply outstanding speeds.
The only thing bitcoin lacks when compared to gold is history. However, this will not take as long to overcome as many might think. Bitcoin simply needs to remain bitcoin for it to overtake gold in the long run. It won’t take thousands of people to make it succeed gold. In our world today, almost every child below the age of ten has an idea of what bitcoin is.
This only means that every person under 20 years of age will know more about bitcoin in another decade. The demand for harder forms of money will only continue to grow for a few reasons. The constant reckless money policies issued by world governments and the power that banks hold over customers are a few of these reasons.