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Bitcoin: Is it the new hedge against inflation over Gold?

 


Gold and Bitcoin are the two major assets that do not adhere to any government interference. Both share some common aspects, in terms of being limited assets, and also their prices tend to unexpectedly go up and down according to demand and supply. Since cryptocurrencies are paving remarkable returns around uncertain regulations, it raises a question on whether Bitcoin would excel over gold?


Highlighting the same aspects of gold and bitcoin, the founder and director of an Exchange has said that like gold, the supply of the dominating crypto coin is also limited up to 21 million. Hence, this proves the point that BTC does share a similarity with the yellow metal in terms of scarcity. They are not like fiat money, where depreciation of bank deposits caused by inflation is monitored by the ruling authority. And both Bitcoin and gold are free from government rule. 


Another expert from a blockchain development company has also shared his view regarding the topic. According to him, Gold has indeed been a hedge against inflation for most of the time. But it bears the vulnerability of theft, and is required for the storage, and should also be maintained. The yellow metal had been the reliable investment asset for old money. 


But now, investors are seeing Bitcoin as the digital gold. It is a decentralized asset and does not ask for any maintenance and storage. But terming Bitcoin as a new hedge against the inflation above gold will not do full justice. It can be called a lucrative asset on earth. 


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