Are you planning to go for a wise investment option for your future? Did you hear about the way investors prefer investing in Bitcoin word and precious metals like gold? Are you in a fix regarding the selection of the wisest option between the two?
When most of the answers are yes, you can take great advantage of this article.
Will the Popularity of Digital Currencies be more than Traditional Currencies?
Today, wherever you go; in newspapers and news channels, you will come across a long list of discussions regarding digital currencies like Bitcoin. It seems a common trend today to invest in cryptocurrencies. Now, you must be wondering whether investing in traditional currencies like gold will be worthwhile or not. Both are highly valuable in their places.
Some investors are on their way to selling all their gold ornaments for purchasing Bitcoin. If you are also among them, then there are certain important points to remember to make the best decision:
- The value associated with gold and Bitcoin
- Uses
- Scarcity
- Value going up in forthcoming years
Liquidity Associated with Values of Gold and Bitcoin
As an investor, you must be looking for a great option that will provide you with impressive returns. Before deciding the best option between Bitcoin and gold, you need to consider the liquidity option. You need to make a difference between which one option will help in earning a good amount of money; gold or Bitcoin.
Generally, Bitcoin is a highly popular liquid asset. But, its value depends solely on the market and the total number you have. The Bitcoin Era has enabled traders to have a safe trading environment and get good returns. If the price of the crypto you are holding has a higher price than that of the daily limit; then it is advisable to sell them in the form of smaller increments daily.
The liquidity associated with the gold solely depends on the market value and type. Coming across a genuine buyer of gold bars is a time-consuming deal if traditional methods are followed. Still, you may convert your gold into cash by approaching a reliable and trustworthy dealer online.
Uses Associated with Bitcoin and Gold
It is a fact that items having a higher utility rate will always be in high demand. Higher use will ensure higher demand, lower use will ensure lower demand. If observed properly, gold comprises a long list of utilities that include the following:
- Dentistry
- Electronic goods
- Currency
- Proof as a safe haven
Whereas, Bitcoin being a digital currency comprises limited utility. It has enabled carrying out shopping and money transfer in a peer-to-peer form. As it is decentralized, no extra money is charged for carrying out transactions. It is expected that their utility will get expanded to a further extent in the long run.
Scarcity is another Vital Factor
Scarcity is another vital factor that will help in making the best decision between two elements in terms of investing. No doubt, none between Bitcoin and gold is infinite. According to the report for the last ten years, the availability of gold is increasing by 1.5% annually. Whereas, in the case of Bitcoin; it is increasing by around 2.5% annually.
The recent years have observed immense growth in the cryptocurrency space. With thousands of options available, one can easily purchase the desired number of Bitcoins as desired. That too through the online platforms!
Is there any Proof Regarding the Safe Haven of Bitcoin and Gold?
Last but not the least, it is the safety factor that creates a difference in terms of making a great decision. The safety associated with both gold and Bitcoin keeps on dwindling to some extent. In terms of consistency, the value associated with Bitcoin is in probability. The volatility associated is one of the greatest factors that helps in making a generous selection.
Wrapping Up!
From the above, it can be easily made out that it is a bit difficult to make out the best among gold and Bitcoin. Gold has a proven track record, whereas some facts about Bitcoin still remain a mystery. As a highly conservative investor, it is preferable to opt for gold. While, the ones who prefer going on a roller coaster, Bitcoin will be the right choice.
