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With Bitcoin’s recent pullback, while gold has taken an upward path, some traders are once again considering moving their capital into the precious metal. But Bitcoin analyst and supporter Matthew Crater warns that it is not yet time to sell BTC.
This news is only informative and does not mean a recommendation to buy and sell a particular currency. Dear users, it is their responsibility to research and investigate the validity of currencies.
Crater believes that Bitcoin is a better long-term option than gold to preserve the value of capital, with features such as scarcity, portability, divisibility and digital proof.
The supply of gold increases annually and roughly doubles every 47 years. In addition, the discovery of large and sudden deposits of gold can quickly affect its value.
He also emphasizes that gold is not suitable for digital transfers and it is difficult to move significant amounts of gold in terms of cost and security. Gold-backed tokens also face risks such as issuing more than the actual balance or the possibility of government confiscation.
According to Crater, these characteristics of gold make it inefficient for use in the digital economy, and Bitcoin is better suited to serve as a store of value and an intermediary for digital transactions.
Due to these factors, this analyst advises that Bitcoin holders should not rush to sell and enjoy the long-term benefits of BTC instead of transferring capital to gold.
Cointelegraph
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