Bitcoin Better Than Gold
For thousands of years, gold has been one of the safest stores of value. Many people hold gold to reduce their fiat risk. Bitcoin has many advantages over gold:
Gold is not divisible.
You cannot easily cut up gold to give people small amounts. Bitcoin is easily divisible to 8 decimal places, the unit is called a Satoshi.
Gold is not instantly assay able.
You can’t instantly tell if gold is pure. You can instantly prove you have real Bitcoins.
You need a scale to weigh gold. You can instantly prove how many Bitcoins you have.
Gold is not transmittable over the Internet.
Gold transfer has counterpart risk. Bitcoins are easily sent on the Internet.
Gold can be outlawed and confiscated.
The US government can and has in the past made it illegal to own gold. Bitcoin is not controlled by anybody.
You can memorize your Bitcoin private key.
BITCOIN IS DIGITAL GOLD… Bitcoin Better Than Gold
Bitcoin trade in India grew exponentially and is at an estimated Rs 500 crores per year. There are around 50,000 Bitcoin wallets in India and around 700-800 Bitcoins are traded everyday.
RBI, in its recent report on financial stability, has appreciated the strengths of the underlying ‘blockchain’ technology.
India’s leading law firm Nishith Desai Associates and the Center for Internet and Society, both have published white papers stating that Bitcoins is legal in India under all existing laws.
After early adopters, Bitcoins is attracting a new class of users like professionals, HNIs and all institutions. As the Bitcoin community matures, we shall see an increase in the quality of analysis of Bitcoins price.
Users are now using bitcoin for eCommerce, airtime top up, paying bills, buying gift vouchers from popular online retail sites. Bitcoin transactions in India are about Rs 500 crores a year. We believe India will see an explosion in bitcoins over next 2 years.
China does a volume of more than Rs 10,000 crores per ‘day’ (no typos here) India is where US and China were in 2013. About 40% of the population across the country does not have bank accounts. Bitcoin wallets could be used in remote areas without the need for brick and mortar banks.
India is the world’s biggest remittance market at more than $70 billion. The majority of the remittance is small amounts of around $200. For small amounts especially, users end up paying up to 15% in fees to companies like PayPal, Western Union or to banks through transfer and exchange rate fees. Bitcoin makes it extremely easy to send a small remittance back home. This could save India upto $7 billion in fees paid to third party and add to country’s wealth.