Throughout the years, there have been several comparisons between Bitcoin and gold, as both types of monetary value share some similar traits on the surface. Neither Bitcoin nor gold has intrinsic value, they are both scarce, and mining is part of the process for both types of currency. But that is where the correlations end and banks tend to bash Bitcoin because it can’t live up to the “gold standard”. That is not too surprising, considering how both of currency are completely different.
Also read: The Retail Sector Foresees the Rise of Bitcoin by End of Decade Banks Are Legitimately Afraid of Bitcoin
While banks will never fully embrace Bitcoin as we know it today, there is no reason for blatant disrespect of this popular digital currency either. Bitcoin has become increasingly popular over the past few years, and that has been a thorn in the side for banks, as digital currency is direct competition for the centralized banking system.
Comparing Bitcoin to gold is great, but in the end, ultimately futile, and based on a few misunderstandings. While it is true the total supply of gold cannot be manipulated by central banks, the majority of this precious metal is stored in bank vaults. Moving funds out of that fault requires time and a lot of paperwork, giving banks a way to exert control over the availability of the current supply. Bitcoin, on the other hand, can never be controlled by financial institutions, and is vastly different from gold in that regard.
Oddly enough, banks are not for digital currency price volatility either, but if there would ever be such a thing as the “ Bitcoin Standard ”, having no volatility would lead to flat trading markets. Reduced volatility on the market would be beneficial to economies in […]
