From gold to bitcoin. A price multiplication awaits us, says a Slovak expert

Perhaps the best representation of the “digital age” we live in is currently cryptocurrencies. Virtual assets, the quantity, popularity and especially the price of which have experienced an astronomical increase in recent years and are gradually entering the lives of ordinary people.

However, NFT exchanges, where irreplaceable tokens are sold for hundreds of thousands, sometimes up to millions of euros, or huge daily volumes on cryptobourses would not exist without the “father of cryptocurrencies”, the first digital currency bitcoin.

The times of gold are over, the digital age is coming

It was born in 2008, and its main goal was to function as a global decentralized currency that would be independent of any government, bank or other entity. Bitcoin has shown the world how the world of money can be managed collectively, and thanks to it we are now witnessing the rise of the decentralized finance system (DeFi), which many also refer to it as the future of our finances.

You Might Want To Read This:   OKET Talks 2019 regional rally will be held in Tbilisi on September 7

Read also
INTERVIEW: The traditional system will collapse. This is the final product of cryptocurrencies, they will replace our finances

However, the backbone of world finances has been gold for centuries, which people have valued since ancient civilizations. repay its value in gold.

Despite the fact that it contributed to the collapse of the world economy in the early 20th century, world currencies led by the US dollar were pegged to gold until 1971, when the value of today’s most common store of value (dollar) was fixed at 1/35 of a troy ounce of gold. .

Cryptocurrencies have opened up new opportunities to hedge against inflation

However, more than 50 years have passed since the abolition of this system, during which gold was considered a traditional “competitor” for the dollar and its price has historically risen the most during economic recessions, when currency inflation has taken place. For example, during the peak of the financial market crash in September 2008, the price of gold moved below the level of 800 USD, but by the end of 2011 it reached up to 1900 USD.

You Might Want To Read This:   Abu Dhabi will post real estate cadastre on SmartHub blockchain

However, the traditional hedging asset has gained another large competitor over the past decade, which has a huge advantage over it in many ways. Whether and how we can compare gold with bitcoin at all, we asked Fumbi CEO Juraj Forgács, who deals with investing in cryptocurrencies.

Gold has been an integral part of the world’s economies for centuries. Can we compare bitcoin with it at all, even though it hasn’t been with us for two decades?

Startitup PREMIUM logo

This article is available to Startitup PREMIUM members

(You can cancel at any time)

Leave a Reply

Your email address will not be published. Required fields are marked *