How can you regulate a sphere of the economy that is not fully understood? The following is a comparison between bitcoin and gold that should be considered money. But at the same time, it should be understood that gold is based on fear, and bitcoin is based on greed.
1. Durability
Ideally, any money should be strong and durable in order to last as long as possible and not spoil. This is one of the reasons why many currencies are made from metals and other hard materials. Gold is one of the most suitable metals for minting coins, as it does not rust or tarnish. It can be bent and melted, that is, it is practically indestructible. Since the beginning of gold mining about 5,000 years ago, mankind has been able to extract from the earth during this time about 200,000 tons, which are still available and in use today.
Bitcoin can also be called a durable asset that can live for many more decades. This cryptocurrency exists in a digital space, a decentralized and encrypted network.
2. Mobility
For money to serve as a medium of exchange, it must be easy to transport. That is why land cannot be money, although it is durable and valuable in itself. But not every form of gold is mobile. For example, a bank ingot of gold weighs 12.5 kg, which means that it is impractical and impractical to carry it with you. Gold coins are much better for this because they fit in your pocket. Some 50 years ago, US dollars could be exchanged for a physical precious metal, but since August 15, 1971, this exchange no longer works.
Bitcoin is a very mobile asset as it doesn't exist in physical form. To transport this cryptocurrency, it is enough to have a smartphone and a wallet installed on it with Internet access.
3. Severability
Money must be divisible into smaller parts, otherwise part of the asset will have to be thrown away if you do not know the exact amount. Due to its softness and flexibility, gold can be easily divided into small pieces, namely 1/2, 1/4, 1/10 and even 1/20 ounce.
Bitcoin also consists of divisible parts that can be used to pay for goods and services. More and more companies in the world are accepting the world's main cryptocurrency as a means of payment.
4. Unification
Gold has a reliable level of unification. It does not matter which mint minted a 1 ounce gold coin. In general, it will be accepted in almost any market in the world and will have a single price.
Perhaps, in the future, traders will pay a markup on bitcoins that will be mined using "green energy" or for new bitcoins that are guaranteed not to participate in money laundering and other criminal activities.
5. Limitation
Gold is attractive as money, as its supply in the world is limited. According to some estimates, the peak of its production has already been reached. At this time, paper money is printed further without restrictions, which contributes to the growth of inflation, which we can already observe now. As for Bitcoin, its supply is also limited. According to the plan, as a result, only 21 million coins can be mined. Every year it becomes harder to mine (mine) bitcoins, and the reward for mining a coin is getting smaller.
6. Acceptance
It is very difficult to call any asset money if its value has not been determined in advance. Gold is the benchmark money, as almost every central bank in the world keeps this precious metal in their reserves. Some countries use gold to pay off their international debts.
Of course, not all Central Banks are happy with Bitcoin's existence. At the moment, only one country - El Salvador - officially approves this cryptocurrency as a means of payment. Interestingly, gold is nowhere legal tender. What's more, bitcoin can be sent anywhere in the world and still retains its value.