Bitcoin's scarcity and anti-counterfeiting properties actually outperform gold

Golden Finance News - Some people may think that the properties of precious metals such as gold far exceed the basic properties of Bitcoin, and Bitcoin's scarcity is not as good as that of precious metals such as gold. Moreover, over the years, many people have claimed how scarce gold is and how difficult it is to forge. However, there have been some cases that have proved to us that in fact, gold is not as scarce as we think, and soft metals are often replaced by counterfeit imitations.

Gold is not as rare as we think, and soft metals can also be replaced by counterfeits. Image source: Golden Finance

Gold’s Scarcity Compared to Bitcoin’s Scarcity

One of the most valuable properties of Bitcoin is that it accounts for 21 million units of the total value of digital cryptocurrencies. Bitcoin's scarcity is unique and a valuable trait for humans because economists believe it can protect against market behavior such as inflation. Most people believe that precious metals such as gold and silver are scarce commodities in the world. However, the scarcity of gold may have seemed a bit false over the years.

One of the characteristics of Bitcoin is that it accounts for 21 million units of the total value of digital cryptocurrencies. Image source: Golden Finance

For example, scientists have discovered that there are a lot of mineral elements in space, especially on asteroids. And asteroid mining, that is, extracting raw materials from floating space rocks, is a legitimate venture that we will most likely do in the future, mining gold, silver, iridium, palladium, platinum, and transporting these minerals back to Earth. Although for now, this process may be quite expensive, it may cost billions of dollars at the beginning, and many projects have been developed for this goal, including NASA's OSIRIS-Rex mission. An asteroid may contain hundreds of thousands of kilograms of gold, depending on the size of the planet. Google's Planetary Resources is also planning to mine asteroids.

Bitcoin's scarcity and anti-counterfeiting properties actually outperform gold

In fact, on Earth, compared to the scarcity of Bitcoin, there may be much more gold than we think. For example, under the seabed, new mining sites are discovered every few years. Just last week, on March 29, a mine with more than 382 tons of gold was discovered in Shandong, China. According to relevant reports, the value of the mine is estimated to be more than US$22 billion (equivalent to RMB 150 billion), which itself exceeds the current market value of Bitcoin. The report revealed that the mine is the largest gold reserve discovered in China, and potential excavation work is expected to be completed within two years.

A mine with a gold content of more than 382 tons was discovered in Shandong, China. Image source: Golden Finance

As we all know, Bitcoin cannot be copied or counterfeited due to its scarcity. The Bitcoin network will not accept counterfeit Bitcoins and will reject anyone who tries to spend Bitcoin above its market value. The scarcity of Bitcoin is fixed, although gold advocates argue that gold is also difficult to counterfeit.

Fool's Gold

Recently, in Edmonton, Canada, local law enforcement officials issued a public warning about a potential fake gold bar scam. Last year, merchants in Edmonton purchased fake gold bars, which investigators reported were "professionally packaged and certified."

"We tested the product for authenticity and quickly determined that the gold bars were simply copper bars with a gold coating," said Robert Welton, a criminal investigator with EPS.

In Edmonton, Canada, local law enforcement officials issued a warning about potential fake gold bar scams. Image source: Golden Finance

Additionally, last month, Chinese investigators released a report on an ongoing investigation into the forging of gold bars by Boyuan Mining Company. The counterfeit bars are said to have been used by investors and financial institutions in the region to secure collateral and pledge loans. The suspects used 62 percent tungsten when forging the bars, although the outer shell was pure gold.

Bitcoin’s scarcity benefits as sound money are greater than gold’s

Obviously, gold's reputation for scarcity and resistance to counterfeiting is somewhat misleading. On the other hand, Bitcoin's scarcity is stable because it will never exceed the 21 million supply cap. Therefore, it is extremely difficult to forge within the Bitcoin network. In addition, the number of Bitcoins in existence is much smaller than we think due to loss, theft, etc.

Regarding the attributes of sound money, in terms of scarcity and counterfeiting, Bitcoin's scarcity is superior to precious metals such as gold. In addition, in terms of sound money, Bitcoin also stands out in terms of divisibility, portability, durability, etc.