With Bitcoin halving event drawing closer, Coinbase recently said bitcoin will become closer to digital gold in 93 days.
On Feb. 7 Coinbase tweeted to promote an accompanying blog-post that why the halving and subsequent supply rate reduction will further cement that link.
In May 2020, #Bitcoin will experience its third “Halving.” Bitcoin is a digital asset with a fixed & predictable supply, unlike dollars. Bitcoin is designed to be scarce, like gold. Here’s what that means and why it matters in historical context: https://t.co/CLXp7Okb04 — Coinbase (@coinbase) February 7, 2020
Since the gold standard was broken in 1971, the dollar’s value declined and gold’s value, in dollar terms rose over 4000%. Gold has more value than similar metals such as copper due to its relative scarcity and difficulty to acquire. Bitcoin has been designed to be scarce like gold and is artificially difficult to acquire through the Proof-of-Work process of mining.
However, it also has an advantage over gold in being transferable through a communications channel.
“Armed with a myriad of technological advantages, accelerating development, and maturing global market, Bitcoin is a store of value to rival gold in the digital age.”