Three recent incidents proving that Bitcoin is better than gold

• Bitcoin has beaten the gold in terms of investment performance in its 11 years of existence.
• Now, cryptocurrency is taking over the largest hedging asset due to its limits in the 21st century.

The Bitcoin market is on the move again. Cryptocurrency has seen its price rise more than 150% from its March lows. Meanwhile, it has increased by just over 34% over a cumulative period. If Bitcoin were a stake, the "company" would have more value than Airbnb and Adobe at its current market capitalization of around $ 175 billion.

But cryptocurrency is fighting gold, a giant worth a few trillion dollars, more than individual stocks. Analysts have found similarities in the Bitcoin and Gold business model.

First, the two behave as safe assets against geopolitical and macroeconomic risks. Second, they are both speculative investments. And finally, the two tend to present themselves as scarce assets against the problems of inflation. However, many gold bugs have accused Bitcoin of being a sham, even though the cryptocurrency has increased by 8000% in 11 years of life.

But the rapidly spreading coronavirus pandemic proves that these claims are false. Because the virus is forcing people into their homes to practice social distancing, it has shut down businesses in all major sectors. The global economy is expected to decrease by 3.2%

in 2020, according to the United Nations.

The demand for gold is increasing as the oldest refuge in the world. However, the yellow metal turned out to be a heavy element for some, leaving many bitcoin enthusiasts to play gold bugs "what if". Here are three incidents that prove it.

# 1 This non USD oil deal

Last month, two countries affected by US sanctions joined forces to open a private trade and financial route. President of Venezuela Nicolás Maduro sent about $ 500 million in gold to Iran thanks to planes in exchange for help to revive their battered oil industry.

As Bitcoiner Stephen Cole pointed out, Maduro had to spend a fortune to move 9 tonnes of gold across the Atlantic Ocean and the Caucasus. If it were an online Bitcoin transfer, the socialist politician could have paid just under $ 3 in fees.

Source: Twitter

The use case has shown that Bitcoin is much cheaper to transfer and probably saves the environment from unnecessary carbon footprints.

# 2 give me back my gold

The coronavirus pandemic has placed an additional economic burden on some countries. While Venezuela sent its gold reserves to Iran, it also asked a third party to sell its yellow metal to raise funds. But unfortunately, the country has never seen a single gram of its property.

In retrospect, Venezuela kept part of its gold reserves in safes owned by several foreign financial institutions, including the Bank of England. But the bank has refused since 2018 to return 31 tonnes of Venezuelan gold to its president Maduro. Western superpowers do not see Maduro as a legitimate leader of the Latin American country.

Struck by an accident on the oil market, Maduro literally begged the BoEs to sell their gold. at the United Nations. But demand fell on deaf ears again.

This left another lesson for central banks in emerging countries: what belongs to you is not yours until it is in your hands. Bitcoin is of course better. The cryptocurrency stays with its master, locked in a digital wallet protected by a 16-word code. If Venezuela had had Bitcoin, all it would do would be to open the digital vault and sell it online.

# 3 Faster recovery

As noted, bitcoin has recovered faster and more widely than any other traditional asset after the global market liquidation in March. To date, even Gold's profits have appeared to be reduced to just 15%.