Similarities between gold and bitcoin the similarities between gold and bitcoin start from the process to obtain new units of the asset bitcoin conception occurs through a process called mining. That makes bitcoin over 60 times smaller than gold or 1 62 of gold s current market cap. 206 billion bitcoin vs 12 7 trillion gold given the respective prices of both bitcoin and gold the total market cap of circulating supply for each asset comes in at 207 billion for bitcoin and 12 7 trillion for gold.
In gold s case it is a part of this earth we inhabit while bitcoin is an open source software that is maintained by a network open to all and which can survive as long as even just one person remains dedicated to the cause. Gold and bitcoin have no owner or central entity keeping it together. Another key advantage bitcoin has over gold is that its supply level is fixed and transparent eliminating fears of the typical inflationary pressures associated with overproduction that could.
This has been seen in gold in previous centuries. With a sufficient stock to flow ratio and enough people who want something this culture of desire spreads more easily than it shrinks and is well insulated against market shocks. The intrinsic value of gold vs bitcoin if something is desired it will become valuable.
While we know that there is only 21. The halving of bitcoin s mining reward ensures that all 21 million bitcoin will be out in circulation by the year 2140. Both gold and bitcoin are rare resources.
