Bitcoin vs. Gold: Which Is a Better Store of Value?
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Since it was created in 2009 by the pseudonymous Satoshi Nakomoto, Bitcoin has skyrocketed in price, garnering worldwide attention. Since April 2021, Bitcoin’s market capitalization has crossed the $1 trillion mark. This has resulted in many investors turning to the popular cryptocurrency as a store of value when comparing Bitcoin vs. gold.
Traditionally, investors and commodity traders have stored their wealth either in property, stocks, bonds or gold. Gold has generally been a safe hedge against rising prices over extended periods, but digital currencies are a new asset increasingly viewed as a store of value, in addition to being a means of day-to-day transactions. Bitcoin has accordingly gained a reputation as “digital gold.”
Let’s look at the two most prominent options today as we compare Bitcoin vs. gold, and how they stack up against each other when it comes to preserving their value — and your wealth — over the long term.
What Is a Store of Value?
A store of value is an asset that can be reposited and retrieved without losing its value over time.