Bitcoin is a digital cryptocurrency which is often referred to as digital gold.

The main reasons brought up for this is that they both have a limited supply just as gold cannot be simply reprinted neither can Bitcoin. In addition they both require mining. Gold is mined by a bunch of people in a dark corner of the earth using heavy machinery to dig up or Bitcoin is mined by a bunch of people in some dark warehouse using heavy machines to solve complex algorithms for block rewards. Both Bitcoin and gold act as stores of value within their respective ecosystems but these are not the only things that make gold and Bitcoin similar. A common criticism of this comparison is that Bitcoin can be hard forked. A hard fork happens when developers decide that changes must be made to the protocol of a cryptocurrency that will create incompatibilities between the older and newer version. This means that some people can change the protocol of Bitcoin to create a new coin with new rules. Some examples of this are like, Bitcoin cash, Bitcoin gold, Bitcoin diamond etc this means that a new currency is generated and new coins are minted by using bitcoins core protocol. If these Forks were a danger to Bitcoin then we should see their prices match or exceed bitcoins but they don’t. Just as gold has been forked for various purposes white gold, green gold, yellow gold, pink gold, layered gold etc while it is true that all of these contain gold and all of them have their own additional attributes, 24 karat pure gold is recognized by the community as being the greatest store of value. So what gives gold and Bitcoin value? This varies depending on your qualifications. As much as people like to tout gold as being an invaluable resource they are not often the same people who know how to actually use it as a valuable resource. Just like a gold coin is for the layman, simply a social status symbol but to the experts this is a much different story. Gold when in the hands of the right person can do amazing things and so can Bitcoin. Instead of scientists and metallurgists you have programmers and cryptographers who can use bitcoins underlying protocol to create magnificent things such as cryptocurrencies. While some currencies work purely as a means to replace your dollar bills others do not. You have utility tokens, asset tokens, equity tokens. All of these act in various ways and serve various functions within a company, which often has a CEO or prominent figurehead. Bitcoin on the other hand does not have a CEO this means that the actions of one person or group of people cannot impact bitcoins ecosystem making it a store value. If you think of the cryptocurrency market as a value of communities all working together, like countries there are CEOs and advisory boards just as there are presidents and regimes. Just as you can take gold to any country in the world and exchange it for a local currency in order to participate in that country’s economy. You can also take Bitcoin to any company in the crypto community and use it to take part in their ecosystem, just as gold has value all over the world Bitcoin has value all over the crypto verse.

So why does Bitcoin have value? Cryptocurrency offers businesses a new way to raise funds and launch their products. This market will continue to grow and Bitcoin will be the best foot-in-the-door for each of them. It is the currency of the fourth Industrial Revolution which is taking place on the Internet and the Internet is the superhighway that connects all of our societies and creates a world community which is here to stay, and if this society crumbles and the internet shuts down and cryptocurrency disappears with it, we can all take solace in the biggest difference between gold and Bitcoin. We won’t be able to run around beating each other to death with bricks of Bitcoin.

Hope you enjoyed the read! As always folk, Peace out!