Bitcoin used to be called digital gold.
On the other hand, gold has been a popular medium of exchange for thousands of years. This commodity may be traded under contract. It is long-lasting and limited. Gold has preserved its value even after governments collapsed.
It is not practical to carry gold around. That is why investors exchange them for certificates and became mainstream currencies. These are easier to keep and transfer compared to gold coins or ingots.
In 2009, bitcoin technologies emerged. This digital currency possesses the attributes of gold. It can be divided and transferred effortlessly transferable without third party intervention. The digital note can be checked openly compared to other payment systems. Trades can happen minus government intervention. The drawback is the unpredictable price of bitcoin.
However, digital currencies have come forward from imaginary to conventional. What is in store for the typical investor or consumer?
The costs are lower. Bitcoin is not covered or connected directly to laws, governments, enterprises, or banking institutions. Interest charges and surcharges on your credit cards and bank accounts will not affect the crypto-currency. Inflation can have an immediate effect on legal notes but does not impinge on the value of alternative currencies.
Bitcoin assures users full confidentiality since digital transactions do not divulge personal information. There is more privacy for bitcoin since it is based on public key encoding. Purchases are not connected to personal identity. The generated address for consumer purchases changes for every transaction. Users need not worry regarding sales taxes because these are not added to purchases. Third parties are not capable of identifying, monitoring and interrupting transactions denominated in this digital currency.
More and more people are thinking that gold and crypto currencies are secure. They do not even have to worry about bankruptcy. The money is yours for as long as it is listed in the tracking ledger. However, there are also risks because there are no regulators that will guarantee a refund if something goes wrong. The key is for gold and bitcoin investors to become smart all the time.