Preservation of Wealth has been one of the main focus of almost all individual. This is not a new trait but has been woven into out DNA by the generations and generations of thought process. In the early human life Wealth corresponded to Food sources with equated to the Forest and Water ares under the control of an individual or group then it moved to controlling the farming land which was the next generation of wealth and then came the revolution of Gold, silver and Fiat currency. People try to preserve whatever they can and whichever asset class they deem good enough which can be passed on to the next generation.

Till recent times Gold was one of the most sought out wealth preservation asset. Everyone had some based on the NetWorth they had.

But this is not the same time which was till the end of 20th century. This is the time of technology. Everything has changed whether it was for good or bad and so has the asset class for the preservation of wealth. Not changed but yeah it is changing. For both Millennials and the GenZ buying Gold has never been attractive because its old school and it cannot be hold onto your mobile phone. For us anything that we need comes with an App or Feature on a Phone, Tab or computer or else it is going to be left out.

Just to address the issue I have come up with the details on the next generation asset class Bitcoin and how it is the Gold of the current and upcoming generation. What all common traits Bitcoin has with Gold and also how it beats Gold in some of the areas.

Like Gold, it is inflation proof

First plus point what bitcoin has over traditional currency that it shares with gold, probably the biggest is - it’s inflation proof. The problem with traditional money is that when there isn’t enough to go around, governments start printing like crazy. It seems like an easy fix except one problem, more money is chasing around the same quantity of goods and services and that is bad. It means that money can now buy less. It’s gone down in value what we call inflation. Guess what, you have become poorer without even spending a penny of it.
For centuries gold has gotten around that problem and bitcoin goes as well.

They both have a limited supply

The great thing about gold and bitcoin is you can’t just make more of them. With money governments can just print more on worthless bits of paper but when it comes to gold and bitcoin, not a chance.
With gold it’s obvious, the amount of gold that can go around is limited by the earth’s chemical composition.
With bitcoin, the answer isn’t chemical properties but with the source code it’s written in. There is a limit to the number of bitcoin that will ever be released - 21 million - so far around 18 million bitcoins are in circulation. The closer the number gets to 21 million the slower they will be released. It’s estimated that the last bitcoin won’t be out until 120 years from now.

They are both mined

We all have at least an idea of how gold is extracted using mining equipment but what about bitcoin. Well, kind of like gold, it’s also mined.
It is obviously very different process but mining is the word that is used and bitcoin mining involves high powered computers or networks the bitcoin software throws complex math equations at them and when they solve them bitcoin gets released.
Remember, these are super-high powered computers. The point is bitcoin mining might not have much in common with gold mining on the face of it. But both make it difficult to put them into circulation and with both them it means the market won’t be flooded which means they won’t be devalued.

They both go up in value

So if traditional currencies lose value over time but gold and bitcoin steadily go up as the dollar, the euro, the yen or any other currency doesn’t.
True, gold has a heck of a lot more history than bitcoin but if gold wins for history the last few years have shown that bitcoin beats gold hands down somewhere else in price appreciation.
Just look at the last five years. If you you would have invested $100 in bitcoin at the start of 2016, you would now have approximately $5000 and yes bitcoin also crashed in early 2018, 2020 and even after the recent crash of more than 60%.
I think it’s a great indication that even if Bitcoin is volatile, it’s on a strong upward trend that isn’t stopping anytime soon. One that gold cannot come close to.

Both are used to diversify portfolios

For investors out there, I’m not saying you should just invest in one thing. The key is to diversify, hedge your bets in case one part of your portfolio goes down. Buy stocks too, maybe index funds for safety. Mix them up with some commodities like gold and I’m recommending you to buy some crypto and bitcoin, the so-called king of crypto is as safe a bet as they get.
Traditionally gold has been a key part of any well-diversified portfolio. Nowadays, bitcoin and other cryptos are coming in and moving into its space as a serious alternative and once again there is a good reason why.

They are both safe heavens in times of volatility

Bitcoin like gold is a safe heaven for investors. Smart people know that times of economic uncertainty are going to happen sooner or later.
Once government prints money like crazy and otherwise stable companies go into trouble. Yep, kind of like the times we are in now and smart people have known for a long time that if they have gold not only is it going to hold its value when everything else comes crashing down but when the markets go crazy everyone will start buying gold because it’s safe. And when they do that gold doesn’t just hold its value, it goes up. And in 2020 bitcoin just did that.

Bitcoin is even more verifiable than gold

A few other specifies that make bitcoin so great - how verifiable it is. In other words, how to prove it is legit.
With gold, like and said, you cannot just create if out of thin air but you can mix it will less valuable metals and then push up its value, but thanks to blockchain, the technology that bitcoin is built on. Bitcoin beats traditional money and gold. Every transaction thats ever taken place is recorded on an open source ledger. That means electronic records that are kept on the computer of tens of thousands of users who voluntarily store it and altering records on that many computers is almost impossible which means bitcoin is as legit or verifiable as it gets.

It’s more portable than gold

Something else that makes currencies useful is being portable, easy to carry around and store. Traditional money is very portable- whether it is cash or in the bank. You can access with a card. Gold not so much. It’s heavy and bulky and not so east to store. Let alone carry around with you.
Sure you can invest in gold without ever seeing it but that means you are paying someone to store it in a super secure vault and guess what there are storage costs for that.
Bitcoin gets the best of both worlds. Like gold, it does not suffer from inflation and like money it’s portable because it’s digital. All you need is an internet connection and you are good to store it, send it around like an email or access it whenever you want or need.

It’s easily divisible

Here’s another measure of how useful something is for investment or spending - you can divide it into smaller amounts.
With stocks, if you want to invest, you sometimes have to buy a whole stock which could be hundreds or thousands of dollars.
Investing in bitcoin, you can start small because there are lot of subdivisions, the smallest is called Satoshi which is a hundred millionth of a bitcoin. That’s about a fiftieth of a cent.

Bitcoin beats Gold for transactions

So, bitcoin is more portable than gold and very divisible too. Put those together and you get something that’s ideal for making transactions - multi-million dollar ones as well as just doing your groceries.
The fact that gold isn’t very portable or easily divisible is one reason why we don’t pay for things in gold and why cash became king but bitcoin gets around those problems and growing number of companies like Microsoft, At&t, Virgin Galactic and McDonalds accept it as payment. There is still resistance because it’s volatile but with times I’m sure that will wear off and in the near future we are going to see more and more everyday transactions in bitcoin something that has never been practical with Gold.

It’s got the best security out there

It’s true, there is no big powerful institution monitoring bitcoin but it’s extremely safe as well as being verifiable and practically impossible to forge. It is equally difficult to steal or make a transaction without the owners consent.

They are both decentralised but crypto still wins

Unlike currencies government cannot touch bitcoin and the price is determined by supply and demand much like gold has been for centuries except bitcoin is a bit more decentralised than gold. Because gold is being hoarded more and more by the central banks to back up their currencies and large investment banks. And it’s in their power to fix price of Gold.
In 2011, Barclays bank was fined for stopping traders from manipulating gold prices and in 2018, JP Morgan traders pleaded guilty to manipulating metal markets and Forbes has stated that when it comes to fixing gold price, it’ not a matter of if but of how much.