Famous Libertarian politician Ron Paul, who was formerly a representative in the House and ran for President on both Libertarian and Republican tickets, posted an interesting poll on Twitter. The poll asks that if a wealthy person gave you $10,000, but the caveat is that you have to hold that $10,000 for 10 years, in what form would you keep that $10,000?

Just over 77,000 people voted, and Bitcoin (BTC) won by far with 59% of the vote. In 2nd place was gold with 33% of the vote, with cash and 10-year treasury bonds trailing with 2% and 7% of the vote respectively. 

The reason cash was only voted for by 2% of participants is likely because of fiat inflation. Basically, cash loses some of its value each year due to inflation. At an inflation rate of 2.5%, about the average over the past decade, $10,000 would be worth only $7,760 in 10 years, assuming the inflation rate does not increase. 

Ten-year treasury bonds pay an annual interest rate, but at this time it is only 1.8%, less than the annual inflation rate. So even with an annual bond yield, a 10-year bond purchased today would only be worth the equivalent of $9,400 in 10 years. 

Gold is an asset that can go up in value, indeed gold has risen from roughly $1,200 to $1,500 over the past year. However, on a longer-term scale gold is generally flat. This year was particularly good for gold, but in the previous four years, the price of gold barely rose at all. 

Theoretically gold should rise due to fiat inflation, but the gold supply is not fixed, and sometimes increases in the supply of gold due to miners striking a rich gold deposit can suppress the market. More importantly, paper gold markets on COMEX constantly suppress the market, making it so gold does not rise in step with fiat inflation nor investors demand for gold. 

Aside from the gold market being suppressed by paper gold and miners possibly finding lots of gold, it is practically impossible to use gold for everyday transactions, and for large transactions there are heavy fees for transporting the gold while ensuring it is secure. 

Bitcoin (BTC) likely won this poll since it can be sent anywhere in the world instantly and securely for a fee of usually $1 or less, and the Bitcoin (BTC) supply will never exceed a cap of 21 million, unlike gold which can be infinitely mined.

Further, although paper Bitcoin (BTC) markets do exist, specifically the Bitcoin (BTC) futures on the Chicago Mercantile Exchange (CME) which are cash backed, the technical supply of Bitcoin (BTC) can never be increased beyond what actually exists. This is unlike gold where it is easy to increase the technical supply via paper gold and some accounting tricks, such as guaranteeing delivery for the paper gold but only having a tiny amount of gold in reserve. 

Thus, the Bitcoin (BTC) market has a much better chance than gold to rise long term since the market is not suppressed by sudden influxes of new supply. Also, Bitcoin (BTC) can be sent instantly and securely anywhere for a low fee, unlike gold. 

It seems the Twitter masses are aware of these facts, and this is likely why Bitcoin (BTC) won by far in Ron Paul’s poll.