Since the emergence of Bitcoin (BTC), its proponents have often regarded the cryptocurrency as a potential rival to the traditional store of value, gold. It’s worth noting that these two products belong to distinct asset classes, and as Bitcoin matures, proponents believe it may eventually surpass gold. This topic has sparked debates within financial circles.
In this scenario, Finbold sought insights from the generative artificial intelligence (AI) platform Google Bard, posing, ‘Which asset is a better investment: Bitcoin or Gold?’ The tool provided four compelling reasons why Bitcoin might have an advantage over gold as an investment.
Highly liquid and can be traded 24/7
The tool identified liquidity as the main advantage of Bitcoin. Unlike gold, which necessitates physical possession, Bitcoin can easily be traded and transferred 24/7, allowing investors to access their funds quickly and conveniently. This ease of access and high liquidity make Bitcoin an attractive option for those who value agility in their investments.
Easy to store and transfer
Unlike gold, which necessitates physical possession or storage in a secure vault, Bitcoin is a purely digital currency, existing solely in the digital realm. This characteristic makes it extremely easy to store and transfer.
All that is required is a digital wallet, which can be a software, hardware, or paper wallet, to Bitcoins securely. Investors can store their wallet information digitally or even memorize a passphrase, making it highly portable and easy to access.
Not subject to government regulation
Bard also identified another point in Bitcoin’s favor: its independence from government regulation. Gold has historically been subject to government oversight and regulation, which can impact its value and trade.
In contrast, Bitcoin operates on decentralized blockchain technology, making it resistant to government interference. This attribute appeals to individuals seeking a financial asset that operates outside traditional systems.
However, it is worth noting that there are ongoing global efforts meant to regulate Bitcoin, but entirely outlawing the digital currency has become a challenge.
Potential for high returns
Since its inception, Bitcoin’s staggering value ascent has magnetized investors looking for substantial returns. While gold boasts a track record of wealth preservation, Bitcoin’s price trajectory suggests the potential for significant gains within a relatively short span. This allure of high returns, however, comes bundled with cryptocurrency volatility.
On the other hand, the AI tool also offered some of Bitcoin’s cons, identifying volatility, new asset class, and risks of hacking and theft as the main undoing of the maiden cryptocurrency.
It is worth noting that Bitcoin represents a relatively uncharted asset class in comparison to gold. Yet, its underlying technology holds the potential to transform various industries beyond finance. As blockchain advances, Bitcoin’s utility and value may expand, making it a captivating investment.
In summary, Bard indicated that ultimately, when it comes to investment options, it narrows down to the individual and their preferences.
The post Bitcoin vs. Gold: Google Bard AI shared 4 reasons why BTC is better appeared first on Finbold.