For the merchant bank, which has published a comparative analysis of the two assets, gold, which is more sustainable, less volatile and has intrinsic value, trumps Bitcoin, whose main asset lies in the portability.
Analysts at the merchant bank have indeed used several criteria to compare the most important cryptocurrency, Bitcoin, with gold. Apart from the durability and intrinsic value of these assets, they also looked at portability or the unit of account. And according to them, gold wins in all categories except “portability” (the ease with which it can be transferred).
“While both require expertise for proper long-term storage, gold wins because cryptocurrencies are vulnerable to hacking online wallets or the user’s computer or smartphone [for portfolios offline], and are subject to regulatory risk as well as network and infrastructure risk during a crisis, “they continued.
As a unit of account, the comparison turns largely to the advantage of the precious metal, which allows better to maintain its purchasing power, according to analysts, who note that the Bitcoin / dollar volatility is seven times greater than that of gold / dollar in 2017.
“Transferring bullion can be expensive, requires significant security measures, and is subject to high taxes in some countries, such as India. It is in contrast, much faster and cheaper to transfer Bitcoins, “they give as a single argument in favor of cryptocurrency.
Since the beginning of the year, while gold prices have risen by 12%, the value of Bitcoin has increased by nearly 600%. Its total capitalization, which exceeds 73 billion euros, is today greater than that of a company like Nike.