The Bitcoin Advantage: Why Experts Say It Beats Gold Hands Down

As Bitcoin continues its price surge and wider financial adoption, one question remains hotly debated: is Bitcoin a better investment than gold? By current measures, using the existing market capitalization, gold remains the top asset with a market cap of $17.90 trillion, leading Apple and Nvidia, with Bitcoin at the 7th spot, with an estimated market value of $2.025 trillion. 

But for Saifedean Ammous, the author of The Bitcoin Standard, Bitcoin is the superior asset. The American economist argues that Bitcoin is better since it boasts a fixed supply, is digital and decentralized, and is a better store of value that can hedge against inflation. Ammous explains that it’s a revolutionary form of money, making it more reliable than gold.

Ammous Says Bitcoin Is Superior Because Of Its Fixed Supply

Since publishing his book The Bitcoin Standard, Ammous has consistently fought for Bitcoin and argued that it’s the best asset today. One of his favorite talking points is the ongoing comparisons between Bitcoin and gold. 

Ammous states that whole gold has traditionally been the top asset due to limited supply and store of value property, but Bitcoin has redefined this quality. According to the author, gold “isn’t as scarce as Bitcoin,” with a limited supply of 21 million.

Image: Firstpost

Ammous argues that an annual increase in gold’s supply ranges from 1.5 to 2%, while Bitcoin’s supply is fixed at 21 million. Bitcoin’s supply is fixed, and no other asset in the market has the same quality. The scarcity of top digital assets makes it deflationary, unlike the US dollar, which the US government can print at any time. Since there are a fixed number of Bitcoins, their store of value characteristics are stronger.

Bitcoin Is Better Since It’s Decentralized And Automated

Ammous also focused on Bitcoin’s operations and management. Bitcoin, he argued, is purely digital, meaning transactions are online without physical handling. The world’s top digital asset is automated and decentralized software.

He then compared Bitcoin to fiat currencies, which are subject to control and certain limitations. According to Ammous, fiat currencies like USD operate within a legal framework, which means these are subject to government rules and monetary policies.

Bitcoin, The Ideal Form Of Money Today

Ammous says Bitcoin has plenty of use cases in today’s economic landscape. For example, he cited its value against inflation. Unlike fiat currencies like USD, which lose their value over time, Bitcoin has a fixed supply, which makes it resistant to inflation. The government can print more money with fiat, leading to its devaluation. However, with BTC, no one can create another coin.

Bitcoin price breaking the $100k barrier. Source: Coingecko

The author then explained the debt issue and how it’s affecting the financial systems. He argued that when a government needs funds, it prints more money, which creates debt. The cycle of borrowing and inflation helps the government but impacts the lives of workers who watch their money lose value.

Bitcoin, he says, offers a solution by not resorting to this cycle. As such, Ammous argued that Bitcoin’s fixed supply and technological advantage make it a better form of money or asset today.

Featured image from Pexels, chart from TradingView