{"id":27054,"date":"2022-07-31T20:24:00","date_gmt":"2022-07-31T20:24:00","guid":{"rendered":"https:\/\/bitcoin.ng\/?p=27054"},"modified":"2022-07-31T20:24:02","modified_gmt":"2022-07-31T20:24:02","slug":"is-bitcoin-digital-gold-or-a-digital-currency","status":"publish","type":"post","link":"https:\/\/bitcoin.ng\/is-bitcoin-digital-gold-or-a-digital-currency\/","title":{"rendered":"Is Bitcoin Digital Gold or a Digital Currency?"},"content":{"rendered":"\n

You might have seen bitcoin being described as a digital gold in some instances and as a digital currency in others. You might have also wondered which one is it now?\u00a0<\/p>\n\n\n\n

In this guide, you will find out whether bitcoin is digital gold, a digital currency, or both.<\/p>\n\n\n\n

Is Bitcoin Digital Gold?<\/h2>\n\n\n\n

Satoshi Nakamoto created Bitcoin as a global peer-to-peer digital cash payment system. <\/p>\n\n\n\n

The goal was to give people a currency that would enable them to transact directly with each other without going through intermediaries like banks. However, something different happened. People started buying bitcoin as an investment and as a store of value. <\/p>\n\n\n\n

As the bitcoin price rose and bitcoin millionaires started to crop up, more and more people rushed to buy the digital currency with the hopes of accumulating wealth in the long term or cashing out for a hefty profit. As a result, bitcoin became more of a store of value, akin to gold, than an actual currency. Hence, the term \u201cdigital gold\u201d was born.<\/p>\n\n\n\n

Bitcoin has established itself as digital gold because it has proved itself as an investment asset and as a store of value. Like gold, bitcoin acts as a store of value because you can use it as a hedge against the fallout of a financial crisis. Moreover, you can use it as an alternative to save your money when your country devalues its sovereign currency or the currency weakens for economic reasons. <\/p>\n\n\n\n

Gold vs. Bitcoin<\/h2>\n\n\n\n
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Source: Pixels<\/figcaption><\/figure>\n\n\n\n

Bitcoin has many of gold\u2019s characteristics plus several benefits that – as many bitcoiners argue – make it superior to gold. They include:<\/p>\n\n\n\n