Bitcoin is a cryptocurrency, which dates back to 2009. To date, we do not know whether a single person or a group of people was behind its creation. It is commonly understood that its creator is the ‘mythical’ Satoshi Nakamoto. The name itself is derived from open source software and peer-to-peer networks, private keys are used to authorize transactions, and can be stored on a personal computer in proprietary software or on a smartphone app. Each Bitcoin is divided into 100,000 smaller units, called satoshi.
Gold has been an investment form known for thousands of years. It is clear that thanks to its value, it has always been an important element of monetary policy in many countries. Both in the libertarian and conservative economies, the presence of gold is not merely of a commercial character, since gold coins have been replaced and converted into banknotes after a time. We are currently seeing banknotes being replaced by ego.
Gold itself has very important advantages in the functioning of global finance, as it is a reference and a security to the value of money. Its features are:
– stable value — for thousands of years, supply has been stable (about 1–2% per year), shaped by non-political factors. It was a factor in organizing and stabilizing the economy during that period,
– the inability to create gold inflation. No authority can add gold or change its value by use of political pressure. This is to ensure the stability of a gold-backed economy,
– great and durable material — it is a form of capital which is durable, almost indestructible, and acceptable in every age.
There is now a connection between gold and Bitcoin. According to analyses from Coin Metrics, the 60-day correlation between gold and Bitcoin price is extremely high and is above 0.5.
Such behavior has a clear impact on the perception of modern forms of investment.
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