Should you invest in gold or bitcoin?
The world has always been an uncertain place. But the last decade or so has seen an explosion of new uncertainty, centred on financial markets and—more recently—on geopolitics. This is why gold and cryptocurrency have gained such traction as alternative investments. The idea is that the old-fashioned haven of gold can be augmented with something more modern and more flexible: cryptocurrency.
So what is a cryptocurrency?
Cryptocurrencies are digital currencies that exist only online. They’re based on a technology called blockchain, which allows users to make transactions anonymously. They are typically traded on an open market. The two main cryptocurrencies in circulation are Bitcoin and Ethereum. Both these currencies have steadily increased in value over the last few years. Cryptocurrency is not just a new investment opportunity, but it is also one of the safest havens for your money.
Is gold better?
- Gold is scarce and has been throughout history. According to some estimates, the entire gold ever mined would be enough to fill two Olympic-sized swimming pools, which isn’t much considering how long people have been using the yellow metal in jewellery and ornaments.
- The other reason why gold makes such a great investment is that it didn’t lose its value over time. Inflation takes its toll on paper money, meaning that it continuously loses its buying power due to the rise of prices. Contrary to paper money, gold has gone through almost zero inflation since being used by humans as a form of currency. You could track and confirm this by yourself. Simply look up today’s gold rate in Berhampur or any other city, for a few days or weeks. Within a few weeks you will have enough data to see for yourself the stability of gold’s price. Click here to know more. This condition is primarily because the supply of gold consistently remains lower than its demand. Even if the price of gold drops, it will still cost as much to produce one gram of gold as at any previous time due to the scarcity of the raw materials needed and their increasing amount.
- Unlike a company that can issue stock or the federal government that can print money, gold must be dug up right from under the ground.
Is bitcoin better?
Bitcoin shares many of these benefits with gold but its certain aspects certainly make it a noteworthy investment opportunity.
- Compared to gold mining, bitcoin mining is relatively cheap and can be conducted by an individual rather than a large organization.
- However, there is a limited amount of bitcoin. There are 21 million possible coins that can be made, and it’s believed that this will be reached in 2040. By the year 2140, there won’t be any more bitcoins added to the system. This makes bitcoin different from fiat currencies like the dollar and the rupee.
- Bitcoin can be divided down to eight decimal places.
- The bitcoin protocol also has several rules built-in to protect against the centralization of mining power. For example, there is a hard limit on the amount of computational power (hash rate) any one person or group can control. The decentralization of bitcoin’s network is one of the primary reasons why bitcoin has withstood so many attacks from government and private institutions. Its decentralized structure makes it nearly impossible for anyone to rewrite the underlying rules that govern how it works.
So as an investor whether you should keep track of today gold rate Satara or today’s bitcoin rate depends entirely on which of the following factors you like:
- Gold is more legal and transparent
- Both match up equally in terms of rarity and liquidity
- Bitcoin is immensely more volatile than gold
- Gold is more accessible
- Gold has had a long history of being relied upon by the central banks
Although gold is still considered as one of the safe-haven assets and it has been around for centuries, in the year 2017, we have witnessed gold being challenged by cryptocurrency. As per some reports released recently, cryptocurrency has proved to be a better investment than gold.
Bitcoin has been performing exceptionally well in the past twelve months and hence, many investors are betting their money on it.