Greet the new king?
For the past 4,000 years, gold has been globally recognized as a haven of value. From being used to preserve the wealth of Egyptian pharaohs in the afterlife, to remaining as ingots in modern vaults, gold has been the solid money upon which civilization was built.
Until now.
There is a new money in town, Bitcoin.
Bitcoin is a new kind of money
The code of life is written in an organism from its beginnings. Satoshi carefully designed Bitcoin's DNA, or genetic code (its computational code), to be the best money ever created. We can think that the #Bitcoin code represents instructions that have been written to encourage the organization and coordination of its cellular function.
This genetic code is manifested through traits (characteristics of an organism) that may or may not be visible.
In biology, a trait is a characteristic of an organism. According to Charles Darwin's theory of evolution by natural selection, organisms that possess traits that allow them to better adapt to their environment compared to other members of their species will be more likely to survive, reproduce, and pass on their genes to the next. generation.
The #dinero is no different. Money has traits that allow it to survive and prosper. Bitcoin is a new species that has traits far superior to its predecessors.
Shortages: How much of the supply exists and how much will there be in the future?
With #oro we don't know how much has been extracted and we don't know how much will be extracted. But we know that there are enormous amounts of gold in the ocean and on asteroids. One asteroid alone, Psyche, has several metals worth a gigantic sum of $10,000 trillion. As we can easily see, the foreseeable shortage of gold is very low.
With Bitcoin, we have a precise measure of supply: 21,000,000, which anyone can audit with their home computer.
Verifiability: can you trust it's real?
Gold requires expensive machinery to validate it at a reliable level. However, this still comes with verification errors, as we saw in China, where 83 tons of fake gold bars ($2.8 billion) were gold-covered copper. In addition, other contracts had been made on top of this gold, which caused a series of additional losses.
The supply of Bitcoin, each transaction made, and new transactions that occur can be easily verified using a home computer running a Bitcoin full node.
Divisibility: How small can you make it?
Gold can be divided into smaller pieces, but they must be cut prior to the transaction and are cost-prohibitive to verify.
Bitcoin is divisible up to 1/100,000,000 parts which are called “Satoshis” and as mentioned above can be easily verified with a home computer.
Portability: Can you move it?
Gold is extremely heavy and is difficult to physically move. And since it is not digital you cannot trade with it on the Internet.
Germany recently repatriated its gold reserves of $31 billion, or 743 tons, from Paris and New York, which took 5 years at a cost of $9.3 million. The process was crazy:
The gold was probably moved to Frankfurt at a very high cost.
Road transport was avoided because it would increase the number of drivers and the ingots are too heavy to move in any considerable volume.
The lawyers had to review the contracts to make sure it was insured during the move (in case it was lost or stolen). Many insurers only pay in dollars, rather than the precious metal, which could catch the central bank off guard if the price of gold rises between the signing of the contract and the safe arrival of the bars in the Bundesbank vaults.
All bars had to be examined by a team of 5-8 people who used X-ray machines and other techniques to evaluate the purity of the metal.
Bitcoin would have required minimal power consumption and 10 to 60 minutes depending on your trust in Bitcoin confirmations.
Finally, gold will never exist natively on the Internet in digital form.
Seizure resistance: can it be stored safely?
Gold must be stored in large vaults with guards and security equipment. When transporting, you must take out additional insurance and hire special security.
Bitcoin can be securely protected using a small hardware device for $50, writing its keys on a piece of paper or metal plate, or being memorized.
Bitcoin is the main predator of money.
Bitcoin has been finely honed for its environment through its exceptional genetic code and the manifestation of that code in the form of higher traits.
Bitcoin is the ultimate predatory money and its existence is the precursor to the extinction of gold.
