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Bitcoin Vs Gold Vs USD - Investment - Nairaland

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Bitcoin Vs. Bitcoincash : What Is The Difference? / Bitcoin Vs Gold: The Paradigm Shift In The Store Of Value Narrative (2) (3) (4)

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Bitcoin Vs Gold Vs USD by Cathy1701: 9:47am On Jul 07, 2017
In many ways, these three is the triumvirate of the contemporary financial world. Each one of them demonstrates an age and each one of them has its own value. Bitcoin is the most recent and contemporary currency which usually called as a cryptocurrency. On the other hand, Gold has its own value from ancient time. USD is the currency that shapes significant amount of present economy.

Without any exception, these all three has numerous positive advantages, but there is no exception in disadvantages too. Let’s take a look at the positive and negative aspect of these currencies in contrast of each other.

Gold Standard

Gold is valuable from ancient time, it is rare and that’s why precious. In the contemporary time, the value of gold is kept in the center of all valuable goods, and with this, we have gold-backed currency. The currency that has been standardized on a fixed quantity of Gold, maintains stable exchange rate. Moreover, the gold-backed currency is immune to manipulation by financial institutions like world bank, governments, etc.

Unfortunately, not all the currencies are totally standardized and backed up by the gold. There is not any effective way to verify the gold exist in sufficient amount, precisely the audits can be corruptible. There is a certain way by which it can be manipulated.

Another major disadvantage of a gold-backed currency is regarding the future. It has been estimated that in the future the precious metals including Gold will not be rare and available in large amount. Many companies like Planetary Resources possess a huge amount of fortunes and they are planning to mine asteroids.

USD

USD has significant importance in the international economic system. The currency has enough physical availability, and it can be withdrawn easily from the bank next to you. USD used to be backed by the gold, but now it is completely fiat, which is a pro as it allows the metal to availed for the commercial purpose. Moreover, USD is flexible and digitally available.

The most notable disadvantage of USD is that the power of creation is acquired by a small group. It has significant interference by the government and political disorders. For instance, take look on the civil war and comprehend the fall of the dollar, moreover, you can also see the 2008 financial crisis.
Re: Bitcoin Vs Gold Vs USD by save4live: 1:09pm On Dec 12, 2017
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Re: Bitcoin Vs Gold Vs USD by LockDown69(m): 1:27pm On Dec 12, 2017
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