In the deadliest COVID 19 period, almost everyone is looking out for ways to regain their financial stability through any stable income process. Most of the investors will consider store of value assets such as Bitcoin and even gold bullion to preserve wealth. Gold has always been a great asset for centuries now, and it is considered a universally recognized commodity asset.
This metal has been compared to the cryptocurrency world, with Bitcoin being the main consideration. Over the last ten years or so, Bitcoin’s values have been skyrocketing, and this growth is here to stay, even during this pandemic scenario. Both these assets will promise benefits such as diversification, but they have their share of drawbacks to consider.
When it comes to trading bitcoin or other forms of cryptocurrencies, choosing to trade in bit trader can be a wise decision. However, before you proceed further, it is advised that you, at first, learn to invest between bitcoin and gold. Read till the end of the article to get a fair comparison.
Reasons To Invest In Gold
The points mentioned below will clearly show why investing in gold is always a clever option to consider. Keep an open mind while going through the points to make the right decision later.
- Always remember that gold cannot be manufactured. So, a company can always issue new shares, and the federal bank can always print dollars, but with gold, there is no such thing involved.
- Regardless of the growing demand, the supply always remains low. So, that makes gold even more profitable if you are willing to sell it later when the market is down.
- This yellow metal is always considered a valuable option like top-notch material for consumer goods like jewellery. But, it is not available in abundance. So, investing in gold will give you the top-level priority to sell at higher rates later when the time comes.
Which Form of Cryptocurrency Should You Trade In?
Once you have covered your points with gold, now, it is time to check out what the cryptocurrency market should be the right choice option for you to invest in. You should through the points minutely as that helps you make a proper decision later.
- Bitcoin is considered a blockchain cryptocurrency, sharing some of the properties much like gold.
- You will be surprised to know that Bitcoin was previously considered “digital gold” because of its weak relationship with other assets, mainly stocks.
- Much like gold, Bitcoin is known to have a limited amount. So, if you can purchase some right now, the price will hike up. So, when the rates are high, you can sell your bitcoins and earn better deals in the end.
Focusing on the regulations:
Gold has a new establishment system for weighing, trading and tracking. So, stealing or faking gold can be pretty tough. Since the beginning, gold is also considered to be a regulated asset. Some countries fail to cross the border when carrying gold without any regularity permission. If you are trying to invest in gold, you can only purchase it from registered brokers and dealers.
On the other hand, Bitcoin is also very difficult to fake or steal because of its decentralized and encrypted system. Most of the time, it is legal to use bitcoin across the borders of multiple countries, with some of the few exceptions down the lane. However, the regulatory infrastructure that will showcase the users are safe is not yet in its place. It becomes quite challenging to regulate bitcoins because of their anonymous nature.
Final Words
Compared to gold, bitcoin has proven to have 100 times more improvement. The world is well-aware of this point and shifting its investment module from gold to bitcoin these days. Even though Bitcoin has jumped multi-fold over the last couple of months, it will continue appreciating in US dollars in the upcoming years as well. By the time 2030 comes, Bitcoin’s market cap can easily surpass that of gold at this current pace.
Remember that bullion gold and bitcoin have their share of pros and cons to consider. It depends on the investor’s discretion on where they might want to invest their hard-earned money.
