🔥Why is BTC called digital gold? Understanding history will make you more resolute!
Metallic currencies have been the primary #currency for over 2500 years, but in the end, it can be said that only gold has made it to the finish line!
Because the market will only choose sound money, choosing money that is hard enough!
Gold, silver, and copper all face the #soft currency trap of supply and demand, as well as centralized issuance and dilution, leading to survival of the fittest to this day.
But gold is hard enough to unite global economies under the gold standard, bringing about unprecedented prosperity in global capital accumulation and trade!
However, as #gold became heavily concentrated in central bank vaults, the issuance of paper currency anchored by it exceeded the gold holdings of banks, leading to currency devaluation due to over-issuance.
This secretly transferred some value from paper currency holders to governments and banks!
Paper currency met the over-issuance and funding needs of centralized organizations, effectively reversing globalization of the economy, payments, and unified currency, causing #exchange rate issues that impacted the overall integration of the global economy, creating direct trade barriers!
Now looking again, #Bitcoin is global, has unified payment and currency characteristics, is decentralized, hard enough (high #stock-to-flow ratio), and does not face issues like over-issuance and dilution.
🤔Will Bitcoin become the consensus currency for humanity in the future?
🤔Can it serve as #digital gold to spark a new global economic prosperity?
History tells us: gold has done this before!
And BTC is growing, possessing all the characteristics that may even surpass gold!
Let me verify the final answer through experience!
#Bitcoin Knowledge #WEB3 #Beginner
