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Bitcoin And Gold Bars On Balance Scale
Money; Shutterstock

Bitcoin was conceived as an alternative to the U.S. dollar. Increasingly, many crypto fans see it as the new gold.

For decades, gold bugs have exalted the precious yellow metal as the ultimate “store of value,” protecting their savings against the corrosive effects of inflation. Enter the Bitcoin bugs. In recent months, many cryptocurrency advocates, including billionaire Mark Cuban, are insisting that the digital currency can do a better job keeping pace with rising prices than gold. They argue that its existence entirely outside the conventional financial system will make it even more independent of the dollar and other mainstream assets.

“Bitcoin has been more of a store of value than a payment system in the U.S. It’s the digital version, essentially, of gold. It has limited supply. It’s not controlled by a central government or a central bank,” says Ben Weiss, chief executive of Bitcoin ATM network CoinFlip. “What you’re seeing is a lot of millennials, who would have bought gold to hedge against inflation 20 years ago, are buying Bitcoin.”

Cuban put it in a blunter fashion in a June tweet. Bitcoin is “BETTER than gold,” he tweeted.

How gold protects you from inflation (in theory)