Gemini Owner: “Bitcoin Is Gold 2.0. It Matches or Beats Gold across the Board”

Gemini Owner: “Bitcoin (BTC) Is Gold 2.0. It Matches or Beats Gold across the Board”

Some crypto enthusiasts see Bitcoin three
directions; as a store of value or as a digital currency, that is a medium of
exchange, or as both.

For Tyler Winklevoss, the co-founder of
Gemini, a cryptocurrency exchange, Bitcoin is a store of value that has better
features than Gold. He also seems to conclude that with differing market caps,
Bitcoin is undervalued. In a tweet he says:

“Bitcoin is Gold 2.0. It matches or beats Gold across the board. Its market cap is approximately 140 billion; Gold’s market cap is approximately 7 trillion. Do the math.”

Making such comparisons on Twitter attracted
opinions from both Gold and Bitcoin supporters.

For instance, Mati Greenspan, a senior market analyst at eToro, chose to point the strengths in both Gold and Bitcoin.

According to Greenspan:

“Bitcoin is digital Gold and has advantages over regular Gold. However, physical Gold also has advantages over Bitcoin. It can be used to make jewelry or technology and can be used in the event of a total system meltdown. If the power goes out, you can’t use Bitcoin.”

Are there Similarities?

But do the two have a resemblance? Yes, to some degree. Comparing Bitcoin and Gold indicates that in terms of investment opportunities, both are speculative in nature. Additionally, both attract attention globally, they have a limited supply, they are impossible to counterfeit, and they are expensive to mine.

Another significant similarity between Bitcoin
and Gold is they are capable of helping their owners to sail safely through an
economic crisis. Due to the two being seemingly identical stores of value,
Bitcoin became digital Gold.

Despite being twins, they have qualities that
set them apart. Fortunately, their differences help propel Bitcoin to a higher
level than Gold. For instance, Gold is low risk followed by low returns while
Bitcoin is high risk followed by high returns. Also, Gold is controlled by the
futures market while digital Gold is not controlled by any government. Bitcoin
is hard to confiscate compared to Gold. Additionally, Bitcoin can be sent and
received with ease compared to Gold.

Gold wins, But it will be Short-lived

However,
Gold is not all trodden by Bitcoin. It wins on grounds such as volatility,
being physical, and having a longer history compared to Bitcoin.

There
is another reason why Bitcoin beats Gold across the board; its growth. Gold has
a 10 percent annual growth, but Bitcoin’s growth has been exponential and always
increasing.

In
2010, Bitcoin recorded
over 20,000 percent growth. In 2011, 2012, 2013, 2015, 2016, 2017,
and 2018, Bitcoin recorded an increase of over 1.9K, 117, 5.5K, 52, and 118
percent respectively.

While
quoting Bitcoin statistics from Coinmetrics and Gold transaction statistics
from IBMA, Kevin Rooke,
a twitter user, noted:

“Bitcoin has been clearing more TX volume that global Gold markets since early 2017. BTC is on pace to process $1.1 trillion in 2018 transactions. Meanwhile, Gold is on pace to process $0.4 trillion in 2018 transactions.”

On
a lighter note,
TuurDemeester, while replying to Winklevoss, noted:

“Still, unlike Bitcoin, a Gold shield will protect the wearer against nuclear radiation.”