The post Bitcoin vs Gold: Why Woo Believes BTC Will Outshine Gold by 2030 appeared first on Coinpedia Fintech News
Which is the best investment option Bitcoin or Gold? Every investor, especially the one who is living with a special love for cryptos, may have come across this question at least once in his/her investment career. Though not many crypto enthusiasts have a confusion regarding the same, the general public normally prefers Gold over Bitcoin, claiming that no asset is as stable as gold – especially when there is uncertainty in the global market. Recently, a crypto enthusiast, identified as Willy Woo, in his X handle, presented some bold arguments capable of challenging the pro-Gold thinking. Eager to know What those were. Then, Dive in to learn.
Gold Production Analysis: A Simple Study
The soul of his argument was his prediction that the production of Gold would increase significantly in the 2030s.
The Gold Production Data, published in Our World in Data, supports his argument. The data shows the commencement of a sharp upward momentum in 1850. In 1976, the production was 668 tons. By 1971, it reached 1,603 tons. Post the disintegration of the USSR, in 1992, it hit around 2,241 tons. In 2015, it was nearly 3,100 tons.
Woo opined that rising demand for Gold was the reason that motivated gold miners to increase its production. Additionally, he presented the recent technological advancements made in the gold production process as the factors that helped miners to respond promptly to the market expectation.
When the price of gold increases, it becomes more profitable for gold miners to extract more gold from the earth.
Bitcoin Vs. Gold: An Analysis
#Gold's bull run is once again kicking miners into high gear to expand the supply.Note #Bitcoin is the only asset that is inelastic to demand which makes it unique.What I find interesting is that this chart is printing higher lows as technology gets better. IMO this chart… pic.twitter.com/q6K3IvT5KW
— Willy Woo (@woonomic) August 24, 2024
Woo supported Bitcoin over Gold, as an investment option. He justified his support for Bitcoin pointing to the inelasticity of Bitcoin. Unlike Gold, Bitcoin does not follow the general supply and demand theory. Bitcoin has a fixed supply cap or a predefined supply cap. The supply of BTC is controlled by its underlying code. It is its code that decides how new Bitcoins are created. And, the number of new BTCs produced is reduced to half every four years. Not a single Bictoin can be produced once the 21 million market cap is reached.
In conclusion, Woo strongly appealed for Bitcoin, exposing the possible reduction of the value of gold due to the continuing, as well as unchecked, rise of its production supported by production technology advancements. Woo’s arguments may encourage traditional gold investors to relook their present investment strategy.
Also Check Out: Crypto Market Today: Why Bitcoin Price Could Hit New Highs in 2024
