Hello everyone, I am your old friend Li Zhongyi, who has been dedicated to the cryptocurrency industry for nearly eight years as a securities analyst. I am an ordinary enthusiast who hopes to see the realization of the Bitcoin technology revolution and witness the future prosperity of currency with all coin friends. Thank you for your support and likes:

I have received many theories from coin friends, most of which compare Bitcoin to gold. Today, I will compare the similarities between Bitcoin and gold. The international gold price has been soaring recently, breaking through 700 yuan per gram. However, many people may not know that the digital gold Bitcoin has also surpassed 500,000 yuan per coin. Many years ago, when the concept of digital gold was proposed, almost everyone regarded it with suspicion. However, fast forward to today, Bitcoin is growing at an astonishing rate, finally beginning to challenge the unshakable position of gold over thousands of years. Bitcoin is called digital gold because it shares some characteristics with gold. However, many people still find it difficult to associate physical and virtual assets. Perhaps this can be traced back to the background of Bitcoin's birth. Thousands of years ago, gold had already adapted to being used as currency. It was first recorded as currency over 2,000 years ago during the Spring and Autumn Period and the Warring States Period, and has been in use ever since. People can use gold without any restrictions from individuals, institutions, or even countries, truly ensuring the inviolability of private property.

In 1717, Newton of England first proposed the gold standard, which was subsequently adopted by various countries. It wasn't until 1971 when U.S. Secretary of State Kissinger announced the plan to abandon the gold standard that the currency of the United States and other countries was no longer tied to gold, allowing for currency value to be no longer limited by gold reserves. This meant that the modern currency system could be devalued and inflated as needed. Then, in the 2008 global financial crisis, the United States printed a large amount of money to rescue banks. People found that the money in their pockets had been diluted, leading to strong dissatisfaction and distrust of the financial system. In this context, Bitcoin has certain advantages. The original intention of Satoshi Nakamoto in creating Bitcoin was to build a decentralized, secure, free, and stable digital currency system through technological innovation and a change in the concept of currency. However, Bitcoin has also faced a series of challenges and controversies in its development.

Satoshi Nakamoto is a well-known figure in the coin circle. When discussing the connection between gold and Bitcoin, it is necessary to start with this figure. Many people believe that Bitcoin is a response to the financial crisis of 2007-2008 based on the messages left by Satoshi Nakamoto before his sudden disappearance. In February 2009, he wrote an article introducing Bitcoin, expressing distrust of central banks and concern about assets. He said, "We have to trust them with our privacy. Don't let identity thieves drain our accounts. Their massive intermediary fees make small payments impossible." So, what are the similarities between gold and Bitcoin?

1. Decentralization: Gold is a natural resource spread across the earth, and anyone could potentially mine gold from some corner. Bitcoin is a public blockchain with network nodes spread globally, making it a resource that anyone can mine.
2. Mining: Gold mining requires workers, mining sites, equipment, and electricity, while Bitcoin mining requires block producers, mining equipment, and electricity.
3. Scarcity: Gold is a non-renewable natural resource, while the upper limit of Bitcoin is 21 million coins.
4. Durability: Gold's physical properties are stable and never rust, while Bitcoin is robust and secure in the network. E-commerce data is never erased, and it is tamper-proof. As the saying goes, real gold fears no fire, and Bitcoin is even more resistant to tampering. Although they are very similar in some respects, digital gold still has many advantages over physical gold, such as the convenience of carrying Bitcoin, the ability to verify it anytime and anywhere, anti-counterfeiting, easier divisibility for transactions, and fast on-chain transfers worth hundreds of millions of dollars, with transaction fees as low as a few dollars, something that gold and even modern banking systems find difficult to achieve in terms of truly transferring assets at such low costs and speeds.

After understanding the history of gold and the advantages and disadvantages of Bitcoin, this issue will truly explore the intrinsic connection between Bitcoin and gold. Why is it said that Bitcoin has opened up the corner of gold? There is evidence to support this. First, Grayscale has repeatedly advertised that even if Bitcoin replaces gold, this is a marketing activity for Bitcoin. Digital currencies like Bitcoin are the future trend, aiming to make Bitcoin a tool for storing value in the 21st century. Currently, BlackRock has become a Bitcoin giant holding nearly 30,000 ETC. Secondly, spot ETF funds are flowing into Bitcoin rapidly. JPMorgan pointed out that the demand for Bitcoin may erode the demand for gold ETFs, and a large amount of funds flowed into Bitcoin spot ETFs after they were launched. At the same time, there has been a significant outflow of funds from gold ETFs. Many financial commentators have pointed out that this is not a coincidence, and a large portion of the cash flowing into Bitcoin spot ETFs has come from gold ETFs.

Furthermore, Bitcoin has entered the top 10 global asset market values. As of April 23, Bitcoin's market value of 1.35 trillion is second only to silver, ranking ninth in the global asset market value rankings. Currently, Bitcoin's market value has already surpassed the total market value of the world's four largest banks, and some even say that Bitcoin's market value will eventually surpass the $16 trillion market value of gold. In fact, it is not surprising that Bitcoin is gradually eroding the market share of gold. The relationship between digital gold and gold is similar to that between digital payments and paper money. As the times progress, the use of paper money is decreasing. The ancient gold may not necessarily meet everyone's needs, so Bitcoin fills this gap. As for whether Bitcoin can gradually surpass gold, that will be determined by history.

At present, the attributes of Bitcoin are mostly virtual, and at least at this stage, wanting to compare it to the gold market does seem a bit like a fantasy. The current situation of Bitcoin is not optimistic. Its concepts are all about future investments, and the most uncertain thing about the future is the unknown. With the rapid development of technology at this stage, it is uncertain when an alternative to the Bitcoin market can be officially released, or when a market disruption or even a surpassing existence of Bitcoin can emerge. Bitcoin can be replaced at any time. The word "future" is full of unpredictable risks, and the overall definition still belongs to the speculative market, whose survival cycle is basically foreseeable. For us, as long as the coin circle still exists, there is a reason for its existence. Existence is reasonable!

Being in the coin circle is also considered to be walking with the consensus. Thank you for your support of the coin circle over the years, whether it's profit or loss, we have all crossed mountains and seas over the years. Investment insight: In the coin circle, understanding the way to survive in the long term is the only way to truly succeed. Otherwise, everything is just a passing cloud, and no matter how much profit you make, it will all be returned to the market in the future. When the clouds clear, you will understand the true essence and connotation of investment! Investment is about making your own money, making money that you understand; it's not about seizing every opportunity and making all the profits. The money in the coin circle is endless, but it can be lost completely.

This material is for learning and reference only and does not constitute investment advice. Any buying or selling based on this material is at your own risk!

Original article by: Li Zhongyi. Please contact the author for deletion if there is any infringement.

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