In the formative years of Bitcoin, crypto enthusiasts had the vision of a digital monetary system that would replace fiat money. Just over a decade, the world’s pioneer cryptocurrency has posted mixed results. Even though Bitcoin is now a household name globally, it will likely not replace regular money just yet. Instead, Bitcoin has taken a new dimension as a speculative investment asset rather than just facilitating digital payments.
As Bitcoin mining has a cap of 21 million bitcoins; this will make the mining more difficult. These factors means that as an investment asset it is more tenable. We all know that gold is the most common store of value asset. As it has an intrinsic value and has an insulation from the stock market shocks many investors try to keep Gold for the diversification.
Despite the devastating results in the bear market of 2018, Bitcoin held a good resilience . Its better to analyze the Gold vs Bitcoin to learn how they mirror each other.
Bitcoin Asset- Store of Value
Altcoins on their own could not reach up to the height of Bitcoins even after the all these years as it didn’t replicate Bitcoin’s success as a store of value.
Whether it is pioneer status, investor consistency or confidence, Bitcoin remains stable and as a dominant cryptocurrency. Just the way gold has a similar status among precious metals dating from the the earliest human civilizations to the Store of Gold by the central banks to hedge against sildes in their native currencies.
Similarity of Bitcoin to Gold-
Scarcity- The cap in the amount of Bitcoins that is restricts the mining processes. Similarly, gold is also scarce.
Decentralization- No single party controls the supply of gold and Bitcoin. So, holding it as an asset is based on the investor confidence.
Both these points makes bitcoin as a candidate for the decent store of value. Also the bitcoin and Gold cannot replace national currencies.
Bitcoin can act as a SOV to those investors who would like to hedge against their native currencies. Crypto is indestructible as it can hold value for an extended time if its prices hold. Protablilty is another fact of bitcoin that has make it advantageous over gold.
How can the value of Bitcoin increase the need of Cryptocurrency Exchanges?
The cryptocurrency exchange sector has said to be grown to the size of mammoth over the years, but still there is a continous need for Exchange platforms as the user count is continously growing. The Bitcoin having an equal status to that of Gold has increased the investor count in the crypto world, thus increasing the need for standard exchange platforms.
You can start your own Crypto Exchange platform easily as a business startup in this scenario to make up millions from your Business. Cryptocurrency exchange Development with the help of a standard Cryptocurrency exchange script will make your business reach heights.
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