Hi,
In a world moving rapidly towards everything digital, AI, blockchain, and central bank cryptocurrencies, one traditional asset class continues to stand out: gold. As the fortunes of digital currencies wax and wane, gold has been quietly operating in the same manner as it has for the past 3,000 to 4,000 years—it preserves wealth, endures beyond any given technological or economic system, and has seen every technological innovation meant to displace it come and go.
Here are five reasons why gold may just live longer than every other cryptocurrency that exists or will ever exist:”
Gold doesn’t depend on technology.
All cryptocurrencies, whether Bitcoin or a brand new CBDC, are founded on a single principle: technology. It shouldn’t be mentioned that they aren’t capable of operating in the absence of electric power, hardware, and internet connectivity. A material like gold doesn’t require a password or a blockchain. It is tangible, universally recognized, and doesn’t require a word of code, whether you are in Toronto, Tokyo, or even Timbuktu.
A failure of systems or a blackout can render one’s digital wealth obsolete in a matter of seconds. On the other hand, gold is an ‘offline’ asset, meaning that it is unaffected by crashes, hacks, or algorithmic glitches.
Experiments with Digital Currencies Continue
The birth of Bitcoin occurred in 2009. Currently, a vast majority of central bank digital currencies remain at a pilot stage. Contrary to this, gold has established trust as a store of value and unit of exchange over 5,000 years. All civilizations, including Egyptians, Romans, and contemporary countries, have looked to gold when faced with a grave situation or a problem.
The convenience that may potentially be gained by digital money hasn’t, as yet, gained the trust that has been accumulated over the past centuries. It doesn’t have to, as gold has already proved its worth.
Gold Is Nobody’s Liability
One big reason why gold has managed to survive as a viable medium, as opposed to the potential volatility associated with all fiat or digital forms of money, is that gold doesn’t rely on the promise of payment by anyone.
All fiat forms of money, even the digital varieties, relate ultimately to a government or a bank or an institution, or even a system, if you will.
Gold is alone. It is a physical asset: It has intrinsic value, which is to say that gold is valuable in and of itself, rather than valuable as an entry in a database as a matter of record, so central banks continue to hoard gold even as they are experimenting with alternatives, knowing that gold will ultimately be their last resort.
Scarcity You Can Touch
Cryptocurrencies are replicable, forked, or replaced with an upgraded version. The availability of gold is measured by natural laws. It is a huge expense and labor to excavate each ounce of gold. The replicability, labor, or natural laws make gold invaluable all the while.
Conclusion: you can print code, but you can’t print gold.
Gold Bridges Generations
Gold is an investment, but gold is a legacy as well, something that can be handed down, something that will never go out of style or change as often as those new ‘currencies.’ A gold coin, even if produced 100 years ago, will remain valuable, while a new ‘currency’ may end up as yesterday’s news, or change pace, or both
Concluding Thoughts
Technology will continue to advance, and cryptocurrency will continue to reinvent itself. However, when the lights are out or the system is rebooted, gold will remain the same – unchanged, untainted, and universally trusted. As a company at AU Bullion, we assist investors in holding this kind of timeless value, whether through gold bars, gold coins, or gold bullion produced by the world’s leading mints and refiners. It is a fact that, while technology trends may change, gold continues to remain the same.
