Bitcoin is the New Gold. Bitcoin has matured over the last decade to become the defacto digital equivalent to real gold. It has the same economic properties as gold, yet it has an advantage in terms of ease of transfer.

Why is Bitcoin a new form of gold, you ask?

Many people see Bitcoin as the new Gold. It is a controversial issue because the perspective which both sides use is important in order to get context around the subject. “Bitcoin is the new gold” proponents believe that its properties of scarcity, divisibility, fungibility and the ease of transfer, make Bitcoin the natural option to replace the US dollar as world reserve currency (which in turn replaced the gold standard in 1971). In contrast, the naysayers argue that cryptocurrencies have no real use case, except that it is like the tulip craze of the 1600s.

What is Gold Really used for?

Measuring wealth. For as long as we humans have recorded history, Gold has been the defacto symbol of wealth. It is used to symbolise wealth and also to transfer wealth. Furthermore, we measure wealth and even create wealth through derivative products.

Unlike Gold, Bitcoin cannot be confiscated or taken from you without your consent.

The Gold Standard

The whole world used Gold until as recent as 1971 to measure the value of FIAT currency. The US dollar is now our “world reserve currency”.  As a result, the United States has an unbalanced degree of power and influence over the world economy. This is a problem. To have a central entity with a small select group of people who decide for the masses with no counterbalance is a BIG problem.

We object to Gold as the world reserve currency for two reasons {neither of which can really be used as a credible justification for not using the Gold Standard}:

1. Scarcity
   Gold deposits are unfairly distributed around the world and some governments will have an unfair advantage in terms of accessibility. This, however, did not stop Britain or America (Anglo-American…) from building a behemoth mining conglomerate.
2. Divisibility
   Some argue that we would not have enough gold in the world to sustain a world economy (we would not have enough gold in order to divide at current market rates) – (uhm… de-value FIAT currency against gold and you solve that problem).

The Mining Bosses

Where there is wealth, there is greed. Unfortunately, gold deposits are unevenly distributed across the globe. Different governments have official mining policies which vary. Furthermore, small groups control these markets which are fragmented across the globe. Companies build whole “other” layers of economies on top of the gold mining industry.

The disparity in distribution causes a situation of the have’s and the have not’s. A breeding ground for corruption, labour abuse and just about every other form of economic abuse where the privileged become yet more privileged and the masses have zero economic mobility.

We all know who the biggest benefactors or “mining bosses” in the mineral mining industry are. We will not discuss this here. {They deserve (and have) blogs of their own, which are dedicated to their pillaging}.

So who are the “Bitcoin Mining Bosses”?

With Bitcoin, you solve the problem which we identify as uneven distribution of the asset. Bitcoin is open to anyone. This does cause an issue, namely that it is easy to manipulate an uneducated market. We have always taken the approach of regulating markets to keep out bad actors, but this requires autonomous control of the said market. No single one entity can control bitcoin.

Ponzi Scheme Owners & Brokers

They are simply confidence tricksters. If bitcoin is the new gold, then we can equate them to “gold prospecting certificate” brokers hanging around pubs and bars waiting for the next fool to ride into town, seeking his fortune.

If its sounds to good to be true, it usually is

Forked Token Supporters

Many tokens are simply forks or derivatives of a predecessor. We have two sides to the coins.

Firstly we have legitimate attempts at improving a coin; so far none of these implementations has been able to mount a challenge in terms of FIAT valuation. The best performer, BitcoinCash, could only manage a rate of 5:1 against Bitcoin during the last peak (Dec ’17).

Secondly, there are imitations. Many see BitcoinCashSV as such a coin because it does not have the perceived pedigree of the original implementation of Bitcoin. {“Bitcoin Cash SV is the new Gold” does not roll off the tongue now, does it?}

Consequently, there are coins which are difficult to classify. They come in different forms and have different attributes, yet when seriously questioned on a technical and economic level do not appear to have substance, are usually not limited in supply and are not decentralized at all. SAFcoin, for example, has very little explanation of its value proposition. On the other hand, we have some who wrongly believe the Ripple Token XRP, will be in use by the banking industry in the near future.

Co(i)n-check

What do all these groups have in common? They all liquidate their positions in favour of Bitcoin. Fresh investors who come into the crypto space and are likely to fall foul of a crypto scam or two, invest FIAT money into bitcoin which they subsequently convert to other tokens. The creators or marketers behind the derived token will now convert the BTC to FIAT. Moreover, they stifle the Bitcoin market and leave new investors holding a bag of potatoes.

Bitcoin is Better New Gold

If you hold bitcoin as an investment, it is a risk, yet it is a calculated risk. It could make you rich, just like the first gold miners in the Wild West of America.

Top Ten Tips to Keep your Coins from the Mining bosses 

• If bitcoin is the new Gold, you need to treat it as such
• Store your own Private Keys.
• There is no such thing as investing bitcoin to make more bitcoin. Buy bitcoin from an exchange and withdraw it to your own wallet.
• Backup your Private Keys.
• Bitcoin has a limit in supply, increased adoption and use translate into scarcity. Scarcity = higher value.
• Not your keys, not your coin.
• Bitcoin is not a database or a payment mechanism
• Control the private keys, you and you alone control the coin
• Bitcoin is an experiment, do not invest more than you can afford to lose if it all goes wrong
• Keys, Keys, Keys. Make sure you backup your keys
• Nobody can confiscate your bitcoin.

Conclusion

Regardless of what perspective you decide to look at Bitcoin from, it still looks like Gold in the right light. The difference is, Bitcoin does a better job at being gold than gold itself. As it’s digital, there’s no need to pay a small military unit in order to move thousands of Bitcoins (as there would be for moving thousands of gold bars). Sending Bitcoin across the border is almost free. Imagine sending a few kilos of Gold over the border.

What do you think of Bitcoin? Out of Gold and Bitcoin, which would you rather invest in? Let us know your thoughts in the comments below!

The post The New Gold is Bitcoin, yet It Seems Mining Bosses Still Exist appeared first on Cryptocurrency exchange: buy/sell/trade bitcoin & altcoins | iCE3X.