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Bitcoin vs. gold: Crypto exchange Coinbase sees great benefits in bitcoin



BTC versus gold is the only one that is truly accessible worldwide and does not have to rely on the physical supply chains.



11.May.20 10:20 AM
By Shawn Highstraw
Photo Coinbase

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Bitcoin vs. gold: Crypto exchange Coinbase sees great benefits in bitcoin
Despite the fact that bitcoin (BTC) and gold are seen by crypto exchange Coinbase as fundamentally comparable in terms of scarcity and globally accessible units of value, bitcoin has a clear advantage.

According to the exchange, Bitcoin versus gold is the only one that is truly accessible worldwide and does not have to rely on the physical supply chains. Reference is made to the disruptions that occurred during the pandemic, causing a price dislocation for gold.

Coinbase further argued this by also referring to news articles about gold written by the Los Angeles Times and the Wall Street Journal. The LA Times referred to the New York gold market, which was pressured by COVID-19 because physical trading routes were affected by the outbreak. WSJ wrote about the serious shortages of gold bars and coins that are selling out sellers.

With the next halving, which will take place on May 12, bitcoin's new offering will drop from about 3.6% p / y to about 1.7% p / y. In addition to continuing to function as initially designed, the core protocol will now become as scarce as gold.

The costs are also seen as an advantage. The production costs of the 'digital gold' would be much more transparent than traditional gold, but bitcoin is also a lot cheaper in the field of international transfers.

While Bitcoin's hash rate may drop temporarily immediately after halving, Coinbase expects the same resilience shown in recent market volatility where it also outperformed gold and the S&P. Despite the temporary decline, the price is expected to eventually see an upward trend and rise to perhaps an unprecedented amount. All's well that ends well.



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