Bitcoin or Gold: Which Option is a Safer Investment?

Bitcoin is still up more than 10% so far in 2021.



Let’s revisit the hottest debates in the Wall Street: bitcoin or gold, which is a safer investment? Bitcoin and gold, two very different investment tools with very different risk profiles. Some people believe bitcoin will be the future of money, while others think it’s just another speculative bubble waiting to burst. However, gold has always been one of the safest ways to store your wealth over time.

Bitcoin or Gold: Which is a safe haven option?

Today, our primary focus will be observing both sides of the gold or bitcoin debate. But, in the end, you should get insights into what seems like the best option for you based on your needs and priorities.

Bitcoin or Gold Debate Wall Street

As we gradually approach a cashless society and digital currencies prevalence becomes stable, it will be essential to consider whether a new asset class like bitcoin is worth the investment.

GOLD

Gold has been a valuable investment tool for centuries. There are three main reasons to invest in gold in today’s world: it is scarce, valuable, and does not rust or tarnish. Gold is scarce because the Earth’s crust only contains about 50 parts per trillion of the metal. This scarcity makes gold valuable as investors know that supply will never exceed demand due to its finite nature. Gold also does not corrode or tarnish which means that even if stocks plummet and investments lose value, your gold will still be worth something down the line!

-LONGEVITY

Gold has been used for business transactions since the beginning of time. In fact, many countries use gold as a method to regulate their currency’s value. Gold is also an excellent investment option because it does not lose its worth over long periods and can be easily exchanged in almost any country. With millions upon millions of ounces mined every year, it is no wonder that gold has been a popular choice for business transactions over the years.

-SAFETY 

If your gold is stored in a metals IRA, its storage would be in a safe vault carefully overseen by one who will manage your account. In addition, these accounts are usually insured to a certain amount, much like a local bank account, so you can relax knowing your investment is safe.

-Can it be used as a currency?

In unexpected events like an economic crisis where local currency is no longer viable, gold can be used in its place as a currency. However, currently gold is not a viable means of buying things. While some gold coins are recognized as currency, the gold value is often worth more than the face value. 

BITCOIN

-VOLATILE NATURE

As an emerging investment, it’s highly volatile, meaning its susceptibility to significant price fluctuations in a short period is on the high side. Any volatile investment has every potential to return richly and can crash just as heavily.

-SAFETY

It is good to know that while bitcoin is entirely digital, you would still need a place to store it, whether on a mobile wallet or web platform. There are benefits and setbacks to each storage option. For example, web-based wallets are prone to be hacked, and your bitcoins could get stolen.

-Can it be used as a currency?

A mobile wallet app allows you to pay with bitcoin, as long as you have one. Bitcoin, as it is, can also be used as a digital currency to purchase goods. There are certain limitations on what you can buy with the cryptocurrency, but it’s still an interesting idea that may help popularize virtual currencies more broadly. While it’s true that each bitcoin carries within itself some information about who “owns” it, this is not particularly different from how dollars work.

Bitcoin or Gold: Our Verdict

If you’re pondering which asset to choose, bitcoin or gold, it all depends on your investment goals. The bitcoin case is speculative, given that its utility isn’t much yet. Because of bitcoin volatility, investors may want to have an entry and strategy exit if the price fluctuations are a risk. It’s also essential to consider the known merits of gold. Because of gold’s less volatile nature, it can be considered a price-stable asset, and unless you decide to change strategy on your investment plan, you need not transact with it. As we gradually approach a cashless society and digital currencies prevalence becomes stable, it will be essential to consider whether a new asset class like bitcoin is worth the investment.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

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