Winklevoss Capital, a firm owned by Gemini exchange has stated some key reasons why Bitcoin is better than gold as a store of value
In the report, Bitcoin was placed side by side with other instruments of the financial market including gold with the store of value been the main yardstick. In recent years, the assets mentioned above have done extremely well in the market but with inflation threatening the dollar, things are set to go sideways.
In the words of the authors, Bitcoin is the best asset that could help any investors in the face of the present inflation. Presently, the United States dollars has been losing value in the face of inflation that is threatening the market.
US loans stretching the value of dollar
To make a case of Bitcoin having a superior store of value, the report talked about supply, demand, storage in terms of gold and oil. Talking about the US dollars, the report talked about the current debasement and the funds borrowed by the government has put so much pressure on the currency.
Presently, the US government owes $26 trillion with 2020 boasting of 3 trillion out of the full debt. With the United States currently indebted, major governments and financial houses around the world have been buying gold as a hedge.
Bitcoin better than gold as a store of value despite gold having core qualities
Despite moves made by the government to boost the market, the report says things might go sideways in a market that has already been affected because of the coronavirus pandemic. If things go south, the effect will be felt in countries that hold dollars for a hedge against times of trouble.
The US Federal Reserve announced last week that the present inflation figure at 2% will be allowed to go up in a bid to help the market overcome difficulties. The Winklevoss twins talked about gold as a good store of value because of its scarcity and difficulty in making a counterfeit but argued that Bitcoin was better as Gold has some issues that Bitcoin does not possess.
