Gold and Bitcoin: The Dissimilar Brothers

Gold bar embossed with the Bitcoin logo
Image: Johannes Lutwin / adaptation Dmitri Broido

Gold and Bitcoin are investments for people who do not trust banks and central banks enough to want to leave their fate to them alone. Do they ultimately do the same?

ARight off the bat, they seem different in a way that couldn’t be more different. On the one hand there is gold: a shiny precious metal that was known even before antiquity, which can be extracted from the ground with great effort and processed into all sorts of beautiful jewelry. Around which many legends and sagas have been entwined since time immemorial, about King Midas, where everything he touched turned to gold, or about the Rhine gold of the Nibelungs, to which Richard Wagner dedicated an opera: “Oh, your louder shone in the depths Trash. ”Today an investment product that can look back on a great history like no other.

And on the other hand, Bitcoin: a child of digitization. Invented around 2008, its history spans only 13 years. A form of investment that is as little physical as a thought: Bitcoin only exists in the form of data in computers; all coins minted with a capital “B” are symbols only. Of course, jewelry cannot be made from Bitcoin. Once bought, you can only hold it or part with it again. No wonder that the typical Bitcoin investor also represents something like the opposite of the gold investor: young, facing the IT world – a true representative of the digital age.

Leave a Comment