Investopedia
Crypto observers say that gold has lost its shine after bitcoin got introduced. In past years, gold became the only asset that has grown tremendously, but after 2017, the story has changed. Gold’s value has declined by 9%, and the value of other investments like the dollar, real estate, and cryptocurrencies have increased.
During the recession period, mainly the investors invest in gold that acts as a hedge against volatility in the stock market. But with the invention of cryptocurrencies, investing strategies are changing. Bitcoin is the first cryptocurrency introduced in 2009. And it started a new era in the history of cryptocurrencies. Many exchanges have developed worldwide that allow investors to own bitcoin and profit from it. You can become a bitcoin champion by trading bitcoin through https://bitcoin-champion.com/.
Bitcoin being a leading digital currency, has many features that are the same as traditional currencies. But, at the same time, some distinct features make it different from traditional currencies. However, it depends on the investors to decide whether bitcoin makes a good investment source during a hard time in the financial market or not. Today, gold is moving sideways, and digital currencies have experienced a tremendous surge in the past few years. So the main question that arises here is, does gold make a better investment or bitcoin?
Gold – A Haven Asset
The existence of gold has been for thousands of years, and in these years, it has been proven to be a reliable and safe asset. The main reason why people invest or trust gold is that it is a source of protection. When bitcoin was not there during the financial crisis, gold became the only asset that investors used to hedge against inflation. Pension funds, central banks, shrewd wealth management offices, and government organizations always invested a significant portion of income in gold.
Is Gold’s Value Dropping?
The price of gold fluctuates a lot like the stock market, but it is a precious metal, and its value has remained steady in all these years. When the financial market is volatile, investors find it essential to invest a portion of their income in gold and diversify their portfolios. During inflation, the price of gold will increase, making it the best investment that acts as a hedge. But when the price of gold increases, the actual worth of traditional currencies decreases. On comparing bitcoin with gold, bitcoin is a digital asset growing slowly but can provide benefits and profits to both long and short-term investors.
If we talk about India specifically, it is the country that has the most investors of gold across the world, and India has experienced an immense boost in the bitcoin industry. In addition, some top-notch crypto exchanges allow investors to have access to digital currencies like bitcoin and invest in them from their homes.
Bitcoin – The Digital Version Of Gold
Bitcoin is one of the most significant and most valuable digital currencies globally in market capitalization. Unlike the stock market, traders can trade Bitcoin 24/7, and there are no restrictions and risks in trading cryptocurrencies. A trader needs to find the best trading platform to trade cryptocurrencies and earn massive profits. The reason why bitcoin is considered a digital version of gold is because of its limited supply. The supply of bitcoin is finite as there are 21 million bitcoins that can be in circulation. The limit of bitcoin cannot be changed, which is the primary reason for its tremendous increase in value over time.
Many features of bitcoin are similar to gold as both the assets are independent of banks and governments. Bitcoin is a peer-to-peer decentralized cryptocurrency that miners mine using powerful hardware, and in exchange, they earn block rewards in the form of bitcoins. Both bitcoin and gold are rare, but miners will continue to mine gold, but the supply of bitcoin will end after a specific period. In addition, Bitcoin is a decentralized system and encrypted, which makes it impossible for anyone to manipulate the network. The case of gold is also similar as it is difficult to counterfeit the metal.
