Asteroid mining could inflate Gold’s supply, making Bitcoin a better store of value 🚨 This article is 6 years old...
Asteroid mining could inflate Gold’s supply, making Bitcoin a better store of value
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Updated: Nov. 7, 2019 at 2:52 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Gold is known as one of the best long-term wealth storing assets during economic crises because of its reliably rare supply, which makes it maintain its value without much depreciation. Only 2,600 tonnes of gold are mined per year expanding the above ground supply at a yearly rate of 1.6 percent. However, the introduction of asteroid mining could open the doors to an enormous supply of precious metals.
NASA estimates the total value of resources in asteroids could be worth quadrillions on Earth, which could bring to an end to gold as a store of value. As the world marches into the digital era, it may make it even more likely that Bitcoin, the decentralized digitally scarce cryptocurrency, becomes the world’s preferred store of value asset.
The Realm of Gold as a Store of Value
Of all minerals on Earth, gold seems to be one of the more useful ones. Its unique properties make it untarnishable, extremely malleable, one of the best electrical conductors, it alloys well with other metals, and is easy to work into wires or sheets. Gold is useful in a wide range of sectors—from applications ranging from electronics to aerospace, to medicine and dentistry. Yet, most gold still goes into jewelry and the vaults of central banks.
