3. Bitcoin has become accepted as a store of value
Most individuals believe gold is a store of value. When Warren Buffet says gold has intrinsic value, he means the asset itself is valuable.
Buffet doesn’t believe Bitcoin has intrinsic value. But it does because BTC investors, and the nation of El Salvador, has decided it does.
El Salvador made Bitcoin legal tender. Nations back up their native currency with gold, silver, or other precious metals. El Salvador backs up their currency with Bitcoin.
Gold indeed boasts an intrinsic value of remarkable purity. It emerges as an investment archetype that approaches near-perfection when it finds its place within an individual's portfolio. Yet, the exalted worth of gold is somewhat overshadowed by its decidedly non-portable physical form, which, regrettably, could potentially imperil its possessor. The physical security layer, in its current construct, fails to match the robustness of its technological counterpart. This disjuncture implies that the specter of pilferage looms over the gold holdings of common citizens, not only jeopardizing their material wealth but also endangering their very lives.
In stark contrast, Bitcoin presents itself as a digital asset, cloaked in a security matrix of considerable intricacy. This novel asset model boasts an accessibility that transcends geographical confines, save for the encumbrances posed by governmental regulations. One can carry the quantum of their BTC holdings with ease, encapsulated within a smartphone or enshrined in a portable physical wallet. Yet, when it comes to toting tangible gold, one cannot help but entertain concerns about safety in the public domain. While digital manifestations of gold have arisen, they often entail the involvement of third-party intermediaries, undermining the pure investment intent.
In essence, both Bitcoin and gold are adorned with their distinct virtues, each standing tall within its own realm of excellence.
Bitcoin has revolutionized as an innovative technology, gold, on the other hand, has existed for decades, but when comparing them you can see the potential of both to be extremely profitable as an investment, it is true that they have their own qualities that make people interested in them, but I believe that bitcoin has had a greater impact despite being new, and the latter is exactly what has impressed and makes it have a certain advantage against gold, the fact that in such a short time this asset has reached having such a high demand and value in the market may be the main reason why it is being desired by many, the other reason is obvious, and it is the purpose for which it was created, many seek to be able to manipulate their money without the need to have restrictions from banking entities on how and when to use what belongs to them, bitcoin guarantees them that freedom.