You have to be careful here, similar to comparing apples and pears. In theory, anyone can store their gold under a mattress. However, this is not very advisable and also quite uncomfortable in the long run. That’s why most people use the services of a bank, which keeps the deposited gold.
A fundamental value proposition of Bitcoin, on the other hand, is its independence from any intermediaries who may charge fees for their services.
The same applies to Bitcoin loophole
In the case of Bitcoin loophole, the amount of storage costs generally scales with the quantity of gold. Those in possession of large quantities of physical gold would do well to entrust a bank with the custody. But this costs space and money.
To hoddle Bitcoin costs, except nerves, actually nothing. A hardware wallet is a one-time purchase and, although it makes sense, it is not even obligatory. The independence with which Bitcoin can be hodled can be illustrated using the example of the Brain Wallet. If you can remember your 24-word seed, you don’t even need a paper wallet to store your Bitcoin. Admittedly, a risky undertaking and not recommended for everyone.
If you don’t own a hardware wallet yet, you can take a look at our BTC-ECHO shop here.
Better value for the news spy
Among Bitcoin maximumists there is the news spy quite popular that Bitcoin must first establish itself as a value store before the crypto currency can really take off as a means of payment. Read more about it: https://www.forexaktuell.com/en/the-news-spy-scam/ But how can Bitcoin still be described as a veritable value storage medium if the crypto currency has fallen in value by almost 85 percent since the beginning of the year?
A look at the growth rates of the circulating supply can illuminate here.
The rate at which the quantity of physical gold grows annually can only be determined inaccurately. On average, the annual quantity of newly mined gold is around 3,200 tonnes. This corresponds to a growth of about six percent. However, it is completely unclear how long the growth rate will remain so constant.
Compared to this, Bitcoin is the scarcer commodity. As shown in the graph, Bitcoin’s money supply grows at a decreasing rate over time. Every 210,000 blocks, the Coinbase Reward, i.e. the primary pay of the miners, is halved, and so is Bitcoin’s inflation rate.
From a market economy point of view, Bitcoin is also so interesting because money supply growth can be predicted exactly for all eternity. A clear advantage over gold.