Earlier, people thought that the barter system was the simplest way of receiving goods of interest. However, when people realized that they were not receiving the exact value for the goods exchanged, a more common and standard way of exchange system was introduced in the trading world. This included the use of gold and its usage dates back to even before 500 B.C.
Yet again, with gold being very expensive, precious, & rare and with the demolition of monarchy and introduction of democracy, a more standard and accessible means of exchange system was introduced by the government. This led to the creation of Dollar, the most widely accepted means of payment in all kinds of businesses.
However, in a world that is digital and where connections are made almost instantly, the need for a more decentralized currency was required. This led to the birth of cryptocurrencies, with Bitcoin being the first of its kind. This suggested web page will tell you why Bitcoin is now the preferred choice of currency for many.
Why is Gold not preferred over Bitcoins?
- The use of gold should be backed with a complete supply to meet the increasing market demands, which is highly impossible, as gold as a resource is always limited.
- The expense incurred in the storage and protection of gold is both an expensive and a risky affair.
- Gold as a currency is not used to carry out all kinds of transactions and does not fit well in this digital world.
- Moreover, gold and its reserves are useless when natural calamities or human disasters strike a nation.
Why is Dollar not preferred over Bitcoins?
- The authority that controls the creation and distribution of Dollar is limited to the control to the hands of a small group of people and this has an impact on the increasing level of corruption in the world.
- The dollar is highly subjected to market instability, that is, its value is not stable during times of inflation or deflation.
- Although the dollar is the most preferred and used currency across the globe, it is subjected to vulnerability when compared to the gold standards.
Hence, why Bitcoins are preferred?
- Bitcoins can be easily stored, handled, and used.
- Every transaction that is carried out using Bitcoins is valid and publicly accounted for, maintaining user anonymity.
- There is no scope for counterfeiting, corruption, or manipulation with Bitcoins, as it cannot be regulated but is divisible into many smaller units, unlike gold and Dollars.
- Every transaction carried out using Bitcoins is transparent, instant and irreversible.
Thus, it is quite evident that the value of digital currencies will always be superior to both gold price and Dollar value, despite the current market volatility of Bitcoins.