There are 21 million bitcoin, now more than 3,000 tons of gold are added to surprise the market
It is often argued that Bitcoin is superior to gold in multiple ways. It is more divisible, easier to transport and store, it is programmable.
Bitcoin is also scarcer than gold. In fact, since the issuance rate of the previous asset is at the cusp of a dramatic cut, the second is prone to massive inflation at any given time.
How scarce is gold?
According to a report in News18, a recent geological study has discovered more than 3,000 tons of gold in India. The Uttar Pradesh state government is looking to auction the gold before it leaves the ground.
The Geological Service of India and the Directorate of Geology and Mining of Uttar Pradesh reported that metal reserves have been confirmed in the village of Hardi in the Kone and Son Pahahi region in Mahuli. The survey placed almost 650 tons of gold in the previous location and more than 2,943 tons in the last.
According to a World Gold Council report, around 190,000 tons of gold have been extracted worldwide to date. The recent discovery in India, therefore, represents an instantaneous increase of two percent in the total circulating supply of the asset. Or he will do it as soon as the miners take him off the ground.
Bitcoin: more solid money than gold?
The discovery highlights the ease of gold and the superiority of Bitcoin in terms of an investment asset. Bitcoin, in addition to being cheap to divide, store and transport, is actually also much scarcer than gold.
Satoshi Nakamoto, whoever, she, they or whatever, designed an elaborate security model and incentive structure to ensure there were only 21 million Bitcoin. Gold, on the other hand, is relatively abundant in the universe.
There is a lot of gold many miles below each of our feet. According to an ABC Science article, there is enough gold in the earth’s core to completely cover the planet with a half-meter layer.
That does not consider the gold that certainly exists in the universe. As NewsBTC recently reported, NASA detected a massive asteroid containing about $ 10 billion of gold last year. The space agency also says it will go after the loot in 2022.
The gold value proposition could have looked solid as a rock 5,000, 500 or even 100 years ago. However, with the technological advances that allow an increasingly precise geological survey and the capabilities of space travel that allow trips to distant asteroids to bring home the riches of the cosmos, it begins to seem much more unstable.
That is fine too. Money is a technology after all and technology is constantly changing. While history makes it clear that hard money, such as gold or Bitcoin, is important, there is nothing to say that a technology closer to a perfect monetary asset cannot alter what has served before.
Blockchain-bitcoin technology has all the possibilities to improve the generation of wealth, money is an instrument for the purchase / sale of goods and services, bitcoin has a great structure in the network that makes it appealing to users and investors. There is a long way to go but it is already a reality in the finance industry, the coexistence of the two industries is not in danger, they are twinned, with criteria of difference that each user must know, financial education is the difference. It is expected by new announcements.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.