On Why Bitcoin Can’t Replace Gold Bullion

Physical gold is prized as “real” money in that in physical terms it is tradable for remarkably constant quantities of staples such as wheat or a fine set of clothes ,across cultures and down the ages.

Unfortunately, Bitcoin that is supposed to behave like gold-money shows nothing of this consistency.

Here’s what Bitcoin could have purchased you since in the last few years:

1 Jan 2010

Value of bitcoin : $0.08 : Rs 3.7
What you could buy: Small packet of biscuits

1 Jan 2011

Value of bitcoin : $0.31 : Rs 13.8
What you could buy: Toothbrush

1 Jan 2012
Value of bitcoin : $6.1 : Rs 325.1
What you could buy: Double McSpicy chicken + Medium fries + McFlurry

1 Jan 2013
Value of bitcoin : $13.3 : Rs 726.2
What you could buy: Branded pullover

1 Jan 2014
Value of bitcoin : $740.3 : Rs 45,824.5
What you could buy: Branded full HD LED TV

1 Jan 2015
Value of bitcoin : $313.8 : Rs 19,863.5
What you could buy: Smartphone

1 Jan 2016
Value of bitcoin : $433.9 : Rs 28,724.2
What you could buy: Laptop

1 Jan 2017
Value of bitcoin : $998.9 : Rs 68,025.1
What you could buy: Bike

7 Dec 2017
Value of bitcoin : $16,601 : Rs 10,72,424.6
What you could buy: Sedan

So, if predictability and the peace of mind it affords is a big part of why you wish to be wealthy, Bitcoin is not of much use and certainly can’t replace physical gold.

About Keerthika Singaravel

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