Gold was the main reserve asset that was considered a safe haven until the entry of digital gold, Bitcoin. BTC and Gold are scarce assets on earth. These are called scare because of their properties that it cannot produce or manufacture in the industry or in the laboratory.
Will Gold be scarce?
Gold is called scarce due to the low concentration. To get gold out of the ground it takes so much effort power and undergoes a process of a large amount of excavation to obtain it. Moreover, the quantity of gold on the surface is very low that there is eight times more gold in the ground, according to a survey carried out by the classical gold standard in 1970. So, more mining needs to be done.
There’s an interesting news coming from Russia, where approximately 40 million troy ounces were discovered in the Siberia region. This will increase the country’s earnings – by about 77 billion US dollars.
Gold as money
Gold is money. It has been that way for the last 5,000 years of mankind history. But because it is money there should not be a utilitarian purpose because with use it would end up by use and consumption of the counties and it will disappear that nobody wants to happen with their money, This was and will continue to happen in the world, while China faced this situation when farmers started making agricultural tools out of copper coins.
Even for today’s paper money, it is not the paper that makes it worthy, but the value of money that makes it worthy, because if it is equal to the paper of what will be consumed and used, it happens from time to time in banknotes become furnace fuel and wallpaper or story.
Will Bitcoin be scarce?
As for obtaining gold, we need to do mining, the same words that are used for bitcoin that is called Bitcoin mining, this digital gold is also a scarce asset like gold since daily a little gold enters the market, just like a new BTC joins circulation in approximately 5 to 10 minutes, the only difference between gold and bitcoin is that we don’t know about the amount of gold available on earth, but the total amount of bitcoins is limited to 21 million which sometime they will enter the circulation to reach that point, it will be the year 2141 or more according to an estimate in 2019 there are barely 17.95 million bitcoins in the market, which is almost 85% of the total number.
The very rapid adoption of bitcoin in the world by individuals and companies allows Bitcoin miners to start accumulating them. After looking deeply into wallets, we found that most of the bitcoins belonging to miners who do not. are selling, the first coin was found in 2019 by mining and it has taken more than 200 days to find the first million and in the previous single-day 18 million BTC were mined and there is a very low amount to discover that makes it the first scarce digital currency in the world. You can learn more about it on Bitcoin up website.
Using Bitcoin as money
There are six properties of anything that make it considered to be used for money such as portability, uniformity, durability, limited supply divisibility, and general acceptability. BTC has passed the first 5 properties, except the last one, which is not yet processed and the thing is coming next. PayPal’s announcement that they will provide services for cryptocurrencies, including Bitcoin along with others, buying or selling bitcoins is now very easy through the available platforms that use Ewallets.
It is very easy to buy and sell with bitcoin in exchange for other goods or services online and offline and the chain of merchants is expanding, even major and branded companies in developed countries are installing Bitcoin ATMs to attract customers, governments of different countries now started accepting BTC in the form of tax, but now it is very close to being as a common currency and will generally be accepted as US dollar or any national currency and many countries are now beginning to tax cryptocurrencies like Australia and Russia.