Infographic: Bitcoins Vs Gold

Bitcoins have finally emerged into the mainstream in recent months, largely on the back of the Cyprus’ troubled banking sector. In this infographic, we put the new digital currency and the oldest form of currency, gold, head-to-head to see which comes out on top.

Bitcoin, in its present form, has a stark resemblance to gold. Both are backed by no one. Both are, relative to fiat currency, inconvenient for day to day use. Gold coins or bitcoins won’t do much good at the grocery store as both lack intrinsic value.

Bitcoins have finally emerged into the mainstream in recent months, largely on the back of the Cyprus’ troubled banking sector. In this infographic, we put the new digital currency and the oldest form of currency, gold, head-to-head to see which comes out on top.

Bitcoin, in its present form, has a stark resemblance to gold. Both are backed by no one. Both are, relative to fiat currency, inconvenient for day to day use. Gold coins or bitcoins won’t do much good at the grocery store as both lack intrinsic value.

Related: Bitcoins: The Politics of A Virtual Currency

But Bitcoins, also known as digital gold, are a very interesting development in the creation of money, especially given their decentralised nature and the fact that no central bank is in control of their growth. In that sense they are a true ‘free-market’ phenomenon.

However, the digital currency has only been around since 2009 and does not have the same kind of long-term credibility and monetary base as gold. Are we able to make any valuable comparisons between the two currencies, and if so, how do they stack up?

via Gold Made Simple