Dealing with cryptocurrencies has become a mainframe business for many people belonging to the financial space. This concept of virtual money that marked its presence with the launch of Bitcoin in 2008 has been in full swing and has managed to record some exceptional highs in its journey in the domain. Being introduced as a ‘paperless money,’ Bitcoin has faced it all during all these years of business and has successfully pooled a class of users favoring its potential.
When launched, Bitcoin was promoted as a currency that offered enhanced security, transparency, reliability, immutability, and stored value in a digital form. Being based on blockchain technology, the asset was free from fraud or dwindling of funds. While some investors applauded cryptocurrencies for their security, others showed a skeptical view.
Talking about security, gold observes the status of a versatile, safe-haven asset and is a trusted commodity for governments across the world. The authorities maintain a reserve of gold as a security against the fiat. The demand for gold is always on the rise because of the unprecedented value advantage it offers to its customers. The crypto coin is often addressed to as digital gold owing to its property of working as a store of value. They have their distinguished properties, which make them rule the financial space, and people choose either of them based on their requirements.
What Makes Bitcoin Better Than Gold?
- Transparency and Safety: Gold is a physical metal exploited from the natural resources found on the Earth’s surface. There is no systematic channel to test the purity of the metal or peep into its supply chain system. However, Bitcoin offers security and transparency to the customers as it runs on a blockchain network. The tracking of Bitcoin investments is as clear as water, and generally, these transactions are free from manipulation by hackers.
- Convenience: Bitcoin is nothing but a payment mechanism that runs on a blockchain without the requirement of a third party. Ease and convenience are synonymous with Bitcoin as the owners need not have to carry their money every time to execute their transactions. It is digital and is stored in crypto wallets that are fully in control of the user.
- Interstate Transactions: It is super convenient and speedy to send or receive cryptocurrencies from one part of the world to another today. The digital format is simple in its approach and helps the customers to transact securely without any hindrance. Interestingly, interstate transfers in gold can be a cumbersome process and are likely to attract legal procedures.
- Free from frauds: Sometimes, we hear cases where people are cheated by giving impure gold or gold mixed with non-precious metals, etc. It is difficult for a common man to test the purity of the metal quickly. The blockchain technology used in Bitcoin eliminates such risks as helps the users to keep track of their investments every time.
- Limited supply: The precious gold metal is found in abundance on our planet. Every year thousands of tons of gold is mined in different parts of the globe. Contrary to this, the supply of Bitcoin is limited to a fixed volume by the creator. This helps keep the asset’s value intact and allows it to maintain its place in the market against other investments.
Profitability – Bitcoin or Gold?
The global economy has seen one of its most severe downfalls in the past few months because of the ongoing coronavirus pandemic. The crisis has given a major jolt to industries, businesses, and capital markets from across the world. Gold and Bitcoin markets, too, have been affected by this.
During mid-March, the prices of gold and Bitcoin rose dramatically. Bitcoin’s capacity to work as a store of value encouraged people to invest in it. Where the price of gold rose nearly by a third, Bitcoin enjoyed a trebled value. The growth of gold began to go in the opposite direction, whereas Bitcoin continued to rule the investors’ hearts.
The pandemic opened a new class of traders for Bitcoin and other cryptocurrencies and helped boost the business exponentially. Some investors addressed Bitcoin as the new safe-haven asset, the status that was reserved for gold earlier. Thus, seeing the recent trends and the boom in its value, it might be a good decision to invest in Bitcoin presently. Invest or trade-in Bitcoin through the Bitcoin Code platform and maximize your profit.
What to Purchase – Bitcoin or Gold?
The reports suggest that the price of Bitcoin is likely to increase in the coming year and so purchasing Bitcoin can be a good investment. If you are a new investor, a small investment can be a good option for you to explore. The price of gold might not be at its peak right now, but past trends suggest that purchasing gold and investing it during highs has never been a losing situation for investors.
The finance domain is versatile, dynamic, and prefers to update itself frequently with new trends. Gold has been an iconic investment owing to its guaranteed market value. The advent of digitalization enhanced the popularity of Bitcoin and presented it as a strong competitor to gold. The currency is secured, transparent, and runs without any third-party involvement. The investment in Bitcoin and gold is dynamic as well as profitable; all one needs is patience to go in flow with the domain.