Leading US crypto exchange, Coinbase, reported that Bitcoin offers a distinct advantage over gold by its lack of dependence on physical supply chains. Gold’s recent supply squeeze, resulting from the impacts of the coronavirus pandemic, has highlighted Bitcoin’s superior global accessibility. Bitcoin does not rely on fragile physical supply chains and is truly globally accessible. The report also notes a roughly 4.5% divergence in the price of gold in New York and London. This divergence resulted from a lack of gold bars that are used to settle Comex’s futures contracts.
Coinbase notes that while gold refineries, miners, and supply chains have been disrupted, Bitcoin’s core protocol continues to function as designed.
Further, the report asserts that Bitcoin will be approximately as scarce as gold. Bitcoin’s current rate of new supply will soon drop to 1.7% on May 12th, setting it on par with gold’s historic scarcity.
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