When Satoshi Nakamoto created bitcoin, he envisioned a peer-to-peer digital currency that would allow people to send money without the need for financial institutions. However, bitcoin’s use as a store of value overshadowed its original goal, and people started referring to it as “digital gold.”
But is it?
Bitcoin as Digital Gold
As you think of bitcoin as digital gold, the first thing you notice is the golden colour circling its symbol. If you go back in history in the times before bitcoin, developers were keen to create a currency that would be the digital version of gold. For instance, the inefficiencies of conventional financial systems and the use of gold as currency inspired Nick Szabo to create Bit Gold.
So, that could have been the thinking of the time: marrying the pros of digital currencies with the benefits of precious metals. That could explain why a yellowish-orangey colour circles the bitcoin symbol. Also, bitcoin is often illustrated as a golden coin.
Nevertheless, the association between bitcoin and gold does not end with the logo.
Digital Gold vs. Physical Gold
Bitcoin and gold have several similarities.
- They both have a limited supply, which boosts their value.
- You can divide both assets into smaller units and they will not lose per unit value. The smallest unit of bitcoin is the satoshi. 100 million satoshis make one bitcoin.
- Gold is stable, and so is bitcoin. Although the latter is volatile in terms of price, bitcoin’s underlying technology, the blockchain, gives it stability.
- They are both easily recognisable.
Bitcoin is more superior to gold because you can move it to any place of the world in minutes, it is impossible to counterfeit, and it facilitates online payments.
Furthermore, bitcoin is more accessible and easy to hoard. Exchanges and peer-to-peer marketplaces like Paxful are making it easier for people across the globe to own cryptocurrencies. For instance, with a smartphone and an internet connection, anyone in the world can buy bitcoin.
Therefore, saying bitcoin is digital gold is an oversimplification. Bitcoin is superior than gold in terms of features and potential impact on economies. However, viewing bitcoin as digital gold is a strategy beginners can use to easily understand the cryptocurrency.
Bitcoin as a Store of Value
After Satoshi released bitcoin to the world, the response was probably better than the unknown creator could have hoped. The cryptocurrency attracted a loyal community that started using bitcoin as a store of value because of its scarcity, safe-haven characteristics, and the fact that it is impossible to counterfeit. As a result, many people are holding bitcoin as a long-term investment because they believe in its long-term value. Moreover, the population of bitcoin supporters is continuously growing.
The debate on whether bitcoin is a store of value or not has been raging for years. While bitcoin “HODLers” believe that bitcoin will one day make them wealthy and shield them from a financial crisis, others believe that bitcoin, which is also partially money, cannot be a store of value as well.
That said, bitcoin has made several people into billionaires, proving that it is a practical store of value. Gold is a store of value as well, and it offers financial freedom and protection during economically tough times. However, governments could deny citizens from owning gold. On the other hand, governments would have a more difficult time blocking citizens from owning bitcoin.
Where Does Bitcoin Get Its Value?
The answer to this question is simple. The decentralised nature of bitcoin gives it a lot of value. As the first digital currency that is not under the control of any government or organization, bitcoin is extremely valuable. Therefore, anyone that is against conventional financial systems will find bitcoin very attractive.
Gold is also a decentralised asset. However, the fact that it is not easy to move or hoard, makes bitcoin arguably the more valuable asset.
The Money of the Internet
Although bitcoin as money was overshadowed for some time by its store of value feature, this is changing. The introduction of the lightning network and its continuous growth is facilitating bitcoin as the money of the internet.
The Lightning Network (LN) is a payment protocol that uses smart contracts to facilitate fast bitcoin transactions. LN is built on top of the Bitcoin blockchain as a second-layer application. LN is supposed to solve Bitcoin’s inability to process more transactions per second. The network promises to handle millions to billions of transactions per second compared to bitcoin’s seven. Currently, you can enjoy the speed of LN by getting wallets like Zap, Breez, and Eclair. However, these wallets are still in development and could have bugs.
LN is taking time to grow, and it has not come through on its promise yet. Also, researchers observe that LN is becoming more centralised and, therefore, more prone to attacks.
Scalability issues aside, bitcoin has the potential to change the payments sector. Major companies like Microsoft, AT&T, and Namecheap are accepting bitcoin as payment. Additionally, platforms like Paxful are enabling businesses to accept payments from anyone in the world through bitcoin.
As such companies set the stage for bitcoin as the money of the internet, it will take time for the world to uniformly accept bitcoin as a payment method. That means that its money functionality will remain underutilised for the time being.
It is clear by now that bitcoin provides more benefits than gold. Therefore, referring to it as digital gold is an understatement. Bitcoin has a lot to offer, and with time, it could become a widely accepted payment method.
Why Cryptocurrencies Are Going to Be the Future of Gaming
Do you know that many predict that online gambling will depend on Crypto in the future? Of course, this makes a lot of sense since digital currencies have become a universal asset in recent years. By the way, we can also say that casinos have benefited greatly from cryptocurrencies.
Aside from the fact that the gambling scene has expanded horizons, it has also bragged of unimaginable game lovers in no time. From this, you should have known that there is still another reason behind these gaming assumptions. But you know what? Sit with us!
Let’s look at the major reasons digital currencies will be the future of the betting industry.
Why Are Cryptocurrencies Going to be the Future of Gaming?
1. Players earn more
Today, cryptocurrencies serve as a way for players to make big bucks. Therefore, it is no longer news that the future of games is a digital currency. Thanks to cryptocurrency, the days when players had to make deposits to play their favorite games without a chance to win are over.
Moreover, digital currencies have continued to function as a major source of income for all punters. For example, it has a special way of rewarding players who have completed certain gaming tasks. These rewards are exceptionally offered by purchasing in-game items with in-game cryptocurrencies, contributing to crypto status.
2. Fast transaction
With fast trading via cryptocurrencies, there is reason to believe that betting sites with local play payment options such as Neteller, Skrill, and bank transfers have little future. This is because it takes time to confirm these payment options.
Speaking of cryptocurrencies, you don’t have to wait long to receive payments. Your account will be credited in a blink of an eye. So tell us! Would you like to leave the crypto-based betting platform for the traditional betting platform? We are doubtful of that! Believe us, it’s coming to the stage where only cryptocurrency game forums exist.
3. Ability to play anywhere
Cryptocurrency eliminates the need to be able to play only in physical casinos. Consequently, it’s a bonus point for the development of online gambling. With this, players can easily access multiple casino games, like a huge catalog of bitcoin slots, and gamble anywhere without fear of being cut off from their betting experience.
Imagine depositing and withdrawing funds from anywhere in the world without restrictions. This means that instead of using other currencies, you can use cryptocurrency tokens to play games in any location. Besides, we all want a stress-free life, and cryptocurrencies have made things easier than we thought. Therefore, there is no upper limit; digital currencies thrive in the gambling market.
4. Gamblers are better safe with Crypto
With the introduction of blockchain in the gambling industry, gamblers are much less likely to constantly fear being victims of data privacy breaches on gambling platforms. As far as we know, cryptocurrencies have the highest level of security to protect players from unforeseen circumstances.
Besides, you don’t have to reveal your financial and personal details on the gaming sites if you wish. That’s because, with crypto gambling, you can play anonymously and still have access to unlimited offers on the sites.
Of course, the technology behind casino games and digital currencies is practical, but you can’t deny that they fit like gloves. You can also buy and sell these digital assets for the benefit of gambling. So no doubt! Over time, the game world will become more eye-catching, and ultimately there will be no gambling forum without cryptocurrencies.
The History of Bitcoin, the First Cryptocurrency
Bitcoin (BTC) has taken investors and the rest of the globe on a wild ride from its modest origins in 2008. The Bitcoin price fluctuated for over a decade, eventually reaching tens of thousands of dollars. Read on to learn about the history of Bitcoin.
Bitcoin is a decentralized electronic trade between individuals. In layman’s terms, individuals may transfer money to one another without going through a bank or intermediary. Bitcoin was created to facilitate financial transactions without dependence on the government or large financial institutions. Bitcoin users may deal with one another through the blockchain, which tracks transactions and the bitcoin price using a “proof-of-work” technique.
Some believe Bitcoin will someday replace fiat money. Despite Bitcoin’s shortcomings, venture investors remain hopeful about the progress in the Bitcoin price achieved since the cryptocurrency’s inception. The emergence of Bitcoin has gathered a group of individuals thrilled about the advent of cryptocurrencies and the possibilities they will provide for companies and investors. Furthermore, Bitcoin has spawned dozens of alternative digital currencies.
When Did Bitcoin Start?
During the 2008 Great Recession, the role of banks in the financial sector was investigated. This was when Bitcoin was created, and a Bitcoin price was established. People claiming to be Satoshi Nakamoto published a white paper about the problems with centralized money management and the importance of trust when dealing with other people’s money.
Transaction costs can add up in the traditional financial system when a transaction can be undone or changed by a third party. The goal of bitcoin was to eliminate the need for a middleman in commercial transactions. Instead of depending on banks and other institutions outside the network to verify network integrity, the Bitcoin system employs cryptographic proof.
The first block was mined in 2009, marking the formal launch of the blockchain. A week on, the first test transaction was done. The only individuals who could obtain it for the first several months were miners who could check the Bitcoin price on the blockchain. Miners would exchange Bitcoins for no other purpose than to have fun. Miners are individuals who utilize very powerful computers to solve complicated mathematical problems to discover new Bitcoins and ensure that previous Bitcoin transactions are honest and accurate.
For another year, there weren’t any major transactions involving the new medium of exchange. Shortly thereafter, in 2010, a Florida resident offered some 10,000 BTC in a bid to have the priceless $25 commodity come home. His name was Pizza John. With this deal, the world had its first genuine Bitcoin prices set at some four Bitcoins for every penny. On average, this haul of Bitcoin compares to approximately $400 million in modern money. Interestingly, crypto enthusiasts have set aside May 22 to mark the groundbreaking occasion, known as “Pizza Day.”
The Price of Bitcoin in the Past
One feature that distinguishes Bitcoin price is its volatility. Because Bitcoin is a novel asset, there is a lot of speculation about it, and its value is widely discussed. Despite fluctuating prices, Bitcoin’s value has skyrocketed since its inception in 2009. Bitcoin’s history has been chiefly one of fast growth, punctuated by a few dramatic price declines here and there. Bitcoin surpassed the $1 milestone in February 2011.
Bitcoin price was less than $2 initially, but then it went up. It had its first bubble in June 2011, rising to above $31 before falling into the single-digit price range. After more than two years, Bitcoin finally reached $200 in April 2013. It was worth more than $1,000 by November of the same year. In November 2017, the fee was raised to $10,000. In November 2021, it reached a high of close to $68,990. That doesn’t mean the journey was without incident.
Bitcoin was called a bubble in 2017 because investors paid more for it than the Bitcoin price was worth. According to Furo, the 2017-2018 bubble was largely caused by an increase in initial coin offerings or ICOs. Some experienced investors compare the Bitcoin bubble to the end-of-the-century internet boom.
Everyone was talking about Bitcoin or other cryptocurrencies, a new network or protocol, from wealthy hedge fund investors to your neighbor. The ICO craze boosted the cryptocurrency market by billions of dollars. The beginning of 2018 saw a significant drop in the Bitcoin price due to psychological and technical issues. When the price of Bitcoin fell, a “mature market” developed around it.
Because of these changes in the Bitcoin price, the Bitcoin market has matured considerably. Established efficient and intelligent exchanges are taking the necessary steps to create a self-sustaining and viable market for investing and trading in Cryptocurrencies such as bitcoin, and key institutional-grade participants are following suit.
Right now, the Bitcoin price is around $37,000. It’s far away from its all-time high and post-peak low. Earle claims that no one knows the inventor- Satoshi Nakamoto. This topic can be discussed, speculated, and may lead to conspiracy theories.
One of these theories holds that Bitcoin is a “skunk work” or top-secret project of a company like Alphabet Inc. or an intelligence service. Others believe it is a “trap-door project” that will be taken over by a bad person waiting in the wings. Earle considers Bitcoin’s present to be more important than its past. He argues that the predominant evidence points to two primary, widely held ideas. The first is: Like anything else, money is actually a good. Secondly, money results from a given market process.
Cryptocurrencies have almost wholly supplanted conventional money, but the Bitcoin price is still maturing, and Bitcoin is becoming a value store and unit of account.
So, what is the future of Bitcoin as a cryptocurrency and the Bitcoin price? Nobody knows, but Furo believes it would be lovely and intriguing.
New, low-cost, and simple investment options are becoming a reality. The Bitcoin price will make acquiring bitcoins even more accessible to many individuals. Such access would be comparable to that of well-known markets. Keep in mind that no investment is without risk.
Weekly Roundup: Binance Announces Zero Bitcoin Trading Fees to Celebrate 5th Anniversary & More
In this week’s news roundup, you’ll read about Binance announcing a fee-free spot trading on various Bitcoin trading pairs, Celo launching a Web3 fund geared towards African startups looking to transition from Web2 to Web3, US commodities regulator filing a civil charge on a South African Bitcoin scam for fraud, and more.
Binance Announces Zero Bitcoin Trading Fees to Celebrate 5th Anniversary
To celebrate its fifth anniversary, Binance has announced that it will eliminate trading fees on a variety of Bitcoin spot trading pairs.
Although Binance has always offered and maintained the lowest spot trading fees in the cryptocurrency industry, this move will see the exchange establish itself as the global leader in pricing.
Speaking about the announcement, Binance Founder and CEO “CZ” (Changpeng Zhao) said: “In line with our user-first philosophy, Binance has always strived to provide the most competitive fees in the industry. At its core, Binance is an inclusive platform with accessibility in mind. Eliminating the trading fees on selected BTC spot trading pairs is another move towards that direction.”
From July 8, Binance users will enjoy zero trading fees on 13 stablecoin and fiat combinations including BTC/USDT, BTC/BUSD, BTC/USDC, BTC/EUR, BTC/TRY, among others. The new fees will be in effect until further notice. This means that users on the crypto exchange will be able to enjoy fee-free trading beyond the two weeks planned for anniversary celebrations.
Celo Launches a Web3 Fund for African Startups Looking to Migrate to Web3 From Web2
Celo, a mobile-first blockchain ecosystem geared towards building an all-inclusive financial system, has announced the launch of its Web3 fund that will support African startups developing across payments, remittance, related financial services, savings, and virtual assets.
Through its VC partners, the Celo Africa Web3 Fund will provide financial investments to African startups. In addition, the company will offer technical assistance via the Celo Developer Guild and its technical partners such as Ape Unit and Tatum. Both the financial investments and technical assistance offered will make it possible for Web2 founders in the African continent to adopt a strategy and grow their business to achieve deeper financial inclusion, lower transaction costs, and more affordable credit.
Celo, together with its various partners, has already made an open call for Web2 founders in Africa to apply for the Celo Africa Web3 Fund by July 15, 2022, and has pledged that they will support shortlisted candidates through their transition to Web3.
The fund will include an in-person workshop across five African countries with the first in-country workshop slated for July 26, 2022. Additional workshops are expected to follow in Ghana, Nigeria, South Africa, and Uganda between July and November 2022.
South African Company Charged by the US CFTC for Bitcoin Fraud Worth Over $1.7 Billion
The US commodities regulator, Commodity Futures Trading Commission (CFTC), has filed civil charges against Mirror Trading International Proprietary Limited (MTI), a South African company, and its CEO, for running a fraudulent Bitcoin commodity pool worth over $1.7 billion and over registration violations.
According to CFTC, the company and its CEO, Cornelius Johannes Steynberg, solicited Bitcoin online between May 2018 and March 2021, from thousands of people, including 23,000 Americans. Additionally, it said that the company instead of trading forex as it had registered itself as, embezzled pool funds, lied about using trading bots, faked account statements, misrepresented trading and performance, and used a fake broker in instances where the trade actually happened.
The Ponzi scheme is the largest involving bitcoin fraud the CTFC has handled. Moreover, the regulator also stated that Steynberg was a fugitive until he was recently arrested in Brazil by Interpol.
Cardano Accelerator Adaverse Funds Seso Property Marketplace to Boost Cardano’s Adoption
Adaverse Fund, a Cardano VC accelerator fund created to boost the development of Web3-based solutions in the African continent, has announced its participation in Seso Global’s fundraising.
Seso Global is an online real estate property marketplace that leverages blockchain technology to reinvent Africa’s real estate industry. The company utilizes blockchain to provide a marketplace that supports secure and risk-free digital land transactions between buyers, financial institutions, land agencies, property owners, and professionals that service the real estate value chain.
The funding round saw venture capital firms, Adaverse, Columbus Angel Network, Emurgo Africa, Kepple Africa Ventures, Moabi Group, and Rising Tide take part. In addition, Jamie Broderick, Albert Essient, and Ibrahim Sagna also took part as angel investors.
“This partnership is key for Seso Global as it provides us with necessary partners and experts to expand our Web3 offerings. We are now seeing the growth of Blockchain real estate solutions and with Adaverse, Seso will be a trailblazer for the industry in Africa. We are confident that Cardano will see strong growth in Africa due to its lower energy needs and cost of the Blockchain.” says Daniel Bloch, CEO and co-founder of Seso Global.
Adaverse was established in September 2021 as a joint venture partnership between Everest Ventures and EMURGO Africa to not only identify but also provide valuable support and resources to propitious African founders developing the next wave of Web3 decentralized applications (DApps) in decentralized finance (DeFi), gaming, non-fungible tokens (NFTs), the metaverse, and more on Cardano’s third-generation and environmentally-sustainable blockchain.
To learn more about Bitcoin, download the Bitcoin Beginner’s Handbook for free.
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