Characteristics of Bitcoin against the Euro and Gold
Bitcoin has a lot of potential to offer us now and for the future. How we can make payments through this is what revolutionized the traditional financial system. The leading cryptocurrency allows us to conduct unlimited cross-border transactions to anyone in a few minutes. And without waiting for anyone's approval. With the traditional system this is impossible. Since it is operated by banks, who really determine whether or not to approve the operations we carry out.
Storage and portability
The way bitcoins, euros and gold are stored and stored is completely different. For example, gold that is a physical asset requires, depending on the quantity, warehouses, vaults or safes. We can't walk around with a certain amount of gold in our pockets. The same goes for cash. Although it is true that it has much more portability than gold, we cannot carry large sums without implying some risk. On the contrary, Bitcoin being an entirely digital asset allows us to carry large sums of money and that hardly occupies a small space in our pocket.
The euro is the legal tender in the European Union. But despite this, it is hardly accepted in other countries as a value exchange currency. Gold, for its part, is world-renowned, but it is also not considered a legal tender for the acquisition of goods and services. At this point, cryptocurrencies offer a greater advantage. Although Bitcoin is not legal tender or issued by any country, if we can acquire goods and services with it in merchants that accept it. No matter where in the world they are.
Bitcoin is divisible by up to 8 decimal places. This offers great divisibility to make small payments. Furthermore, this divisibility can be adjusted if necessary. Conversely, we cannot say the same about fiat money. Coins and bills have their denominations and it is impossible to divide a 1 euro bill into something smaller. Gold, on the other hand, does have a high degree of divisibility, but it is not an easy process to carry out.
Store of value
Bitcoin issuance is controlled and defined in its protocol. There is no room for inflation and devaluation, making Bitcoin an excellent option as a medium and long-term safeguard for value. In contrast, with fiat currencies, governments and central banks manage inflation and devalue currencies as they please.
Bitcoins cannot be counterfeited. The system has a network of globally distributed nodes that are responsible for verifying each transaction that is made. And if they detect any scam or fraud attempt, they immediately reject it. Additionally, Bitcoin has suffered hacking attempts and various attacks throughout its history that have been unsuccessful. So it has proven to be 100% safe so far. For their part, fiat money and gold can be counterfeited.
This is one of the most significant differences between Bitcoin, Euro and Gold. Bitcoin can provide us with a lot of profitability, since it is an asset with high volatility. Although this factor can also become a risk. For their part, fiat money and gold are more stable. So they are less risky for investment, but logically offer less return.
Bitcoin has little time available in the market compared to the euro or gold. Although in recent years, its rise and adoption have grown exponentially. However, there are still many people who do not know this cryptocurrency and do not understand how it works. This results in lower market capitalization and demand, and is based on speculation. Many of the people who know the project aspire to acquire the cryptocurrency to retain it and speculate on its price.