Imagine opening an envelope that was sealed a hundred years ago and contains the keys to a vast treasure. Who wouldn’t be excited? This could be the outcome of a life-long experiment by a Redditor that set off a heated conversation on a Bitcoin subreddit recently. The Redditor, Optimal-Dentistador (or OD for short), deposited 0.003 bitcoin, currently worth $100, and placed the information for both the private and public keys in a letter in an envelope. The Redditor then hid the envelope in a local public library.
A more mainstream investment
According to the Redditor, while 0.003 bitcoin is only worth AUD 100 today, it will be worth a lot more in 100 years. It is likely to be true as the value of bitcoin has increased by over 1000% in only 5 years. Many investors who previously looked to gold as a lifelong investment are now looking to Bitcoin and other cryptocurrencies. Bitcoin is now replacing gold as a long-term investment.
Gold has been an asset that many have used to grow wealth over thousands of years. Bitcoin in comparison is the new kid on the block. Like Gold, Bitcoin is a limited supply asset, making it even more precious. Its price appreciation over the years has continued to draw interest in digital currency. As more investors take up Bitcoin instead of gold, Bitcoin has become digital gold.
Bitcoin offers many attractive benefits for investors, including no dilution risks, unlike both gold and fiat currency. Bitcoin’s hard supply cap of 21 million ensures that it remains a purely limited asset. Unlike gold requiring a physical location for storage, Bitcoins are stored on digital wallets. There’s no need for investing in or seeking a highly secured physical location for safekeeping.
The rush for Bitcoin over gold is also being driven by the current economic downturn in many developed economies. The US, for example, has seen inflation rates of over 5%. The inflation rates are higher than what was experienced during the oil crisis of the 70s. The increased inflation rates have also impacted commodity prices which have been extremely high over the past few years. The money supply in the US has drastically increased to mitigate the impact of the global pandemic on the economy. The result has been a dilution in the investment markets, which has caused investors to look elsewhere for more significant gains.
Many investors are setting their eyes on Bitcoin and other cryptocurrencies as these markets have improved even during the pandemic. Many investors are looking to digital currencies to grow their wealth even as they prepare for potential turmoil moving into the year. That 0.003 bitcoin will most likely be worth millions in 100 years.
