An excellent piece of steak can cost upwards of $100 but no one keeps money in steaks. Steaks go bad eventually. Gold does not go bad. Gold does not only maintain its form over weeks, months, years, and decades. It has proven durable over hundreds and thousands of years. A dollar bill can be burned. It can also be ripped. If it is ripped, it can be replaced. If it is burned, it cannot. That said, rarely are dollars ripped or burned. Beyond the dollar, which as the global reserve currency would seem to be the most durable fiat currency in the world, there is an established history of fiat currencies being rendered worthless in their entireties. A Bitcoin seems to be relatively durable, but since the whole network is only a decade old, it is difficult to rule out the possibility that a fatal issue could bring the whole system down. This is difficult to foresee but cannot be ruled out. Gold wins here but the difference between fiat and Bitcoin depends on which fiat one is comparing to Bitcoin and how confident one is that there is not an unknown unknown that could compromise the seemingly solid durability of Bitcoin.
Last modified 2yr ago