Bitcoin is attracting more and more attention, and many people are trying to define its strongest qualities. Some see Bitcoin as a gold-like asset and a long-term store of value, while others see Bitcoin as a currency that should be spent in the real world. At Jubiter, we took a look at both sides of the argument and found some common ground.
Bitcoin Is Like Gold: It’s Meant to Be Held
Bitcoin and gold are alike in a few important ways. For one thing, both assets have scarcity. Bitcoin exists in limited amounts, and it must be “mined,” just like gold. Of course, Bitcoin is mined digitally, not in a literal sense, but the principle is the same. So far, about 18 million Bitcoin have been discovered, and about 3 million Bitcoin are left to be found.
Scarcity of supply ensures that both assets stay in high demand. This, in turn, keeps prices high, albeit not constantly. The price of gold has temporarily collapsed multiple times in the past. Likewise, Bitcoin crashed in 2017 before it largely recovered its value this year. Still, both assets have gained value in the long run: both are worth more now than ten years ago.
Many high-profile investors and figures have endorsed the idea that Bitcoin is similar to gold. Tyler Winklevoss, co-founder of the Gemini cryptocurrency exchange, has famously called Bitcoin “gold 2.0.” Meanwhile, Mike Novogratz, founder of the merchant bank Galaxy Digital, has also made similar comments and popularized the catchphrase “digital gold.”
Bitcoin Is a Real Currency: You Should Spend It
Unlike gold, Bitcoin resembles traditional currency in many ways. For one thing, Bitcoin is fungible: it can easily be divided, spent, and transferred to recipients all around the world. Bitcoin is also easy to store: although banks might need a vault to keep your gold safe, an unlimited amount of Bitcoin can be securely stored in just the smallest amount of data.
It should be noted that the price of the U.S. dollar is considered more stable than the price of Bitcoin. However, Bitcoin’s price fluctuations aren’t always a bad thing: whenever Bitcoin’s prices get higher, you’ll have a lot of spending power. Of course, nobody can guarantee high prices, but strategic spending allows you to make the most of your Bitcoin.
Many cryptocurrency advocates consider Bitcoin an extremely useful way to spend money. Satoshi Nakamoto, the creator of Bitcoin, envisioned Bitcoin as peer-to-peer electronic cash. Countless merchants and payment processors seem to agree: popular companies like Square and BitPay handle hundreds of millions of dollars of Bitcoin each year.
How We See Bitcoin at Jubiter
At Jubiter, we believe that both sides of the debate have merit, and we allow you to manage your Bitcoin as you see fit. When you sign up for a Jubiter account, we make it easy for you to store your Bitcoin as a long-term investment. We keep your Bitcoin safe with extensive security features, such as two-factor authentication and cold storage.
We also see Bitcoin as a useful currency, and we offer several ways to spend it. Above all, our prepaid Bitcoin debit card allows you to spend Bitcoin at virtually any store or website. This spending option is connected directly to your Jubiter account, so you can switch between storing Bitcoin and spending Bitcoin at any time―it’s your choice.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.