Bitcoin is often referred to as “digital gold. ” The two investments certainly have many similar advantages, which make them excellent stores of value.

In some aspects, Bitcoin is even superior to gold, even if the necessary confidence in the cryptocurrency is lacking. The BTC is above all counterfeit-proof, and its mantra is “Don’t trust; verify. ” Gold, on the other hand, has been imitated many times to provide supposed financial security. One characteristic shared by the two is their scarcity. Here the rarity of the BTC is relative, not absolute. The ratio of the cryptocurrency between the existing amount and inflation, the so-called stock-to-flow rate, remains constant. This makes the value store very predictable. Bitcoin has a clear advantage over gold due to its portability. Within a few minutes, the currency can change its owner.