Gold or Cryptocurrency - Which is Better Investment?

For many years, gold has been the safe haven for people and it was thought to be the only investment option available. However, there are plenty of options available for investing nowadays. One such option is digital currency or commonly known as cryptocurrency. 

Gold has been in this world for years but cryptocurrency is relatively new as it was introduced a decade ago. Not only this, but cryptocurrency took many years to gain the trust of the people as compared to gold. Now there are many websites and applications which provide you with the platform to invest in cryptocurrency such as the british bitcoin profit software. 

There is an on-going debate whether cryptocurrency is a better investment than gold? Or simply, ‘which should you invest in – gold or cryptocurrency?’ Let’s draw a comparison between both and then drive a conclusion from the discussion:

Transparency, Legality, and Safety

People trust gold because of its transparency and safety. Neither it is easy to steal gold nor can anyone sell fake gold to someone. The use and knowledge of gold have become common and people can easily identify the difference between real and fake gold. 

On other hand, bitcoin is also safe from corruption due to its encryption. The decentralized system and complicated algorithms make it difficult for hackers to steal your bitcoins. However, the infrastructure for the security of bitcoin is still not in place. The Mt.Gox disaster is a very popular incidence that sets an example of the dangers of investing in bitcoin. In this disaster, a very popular organization went offline and lost $460 million worth of bitcoins. 

Rarity

Both gold and cryptocurrency are rare resources. Gold mining is in process for many decades but we know that there is a possibility that we can run out of it in future as it is a finite resource. Similarly, bitcoins are also finite resources because there are 21 million bitcoins in the world. 

According to research and predictions, all these 21 million bitcoins will be out in circulation by 2141. We are not sure when we will run out of gold but a scientist says that gold can also be mined from asteroids and many companies are working on this project.

Baseline Value

We all are aware of the baseline value for gold. It's excessive use in various industries and the most prominent use is in jewellery. Furthermore, it is used in dentistry, electronics, and many more fields. 

On the other hand, bitcoin also has a high baseline value because billions of people all over the world use it for buying things, and trading. There are many people over the world that are deprived of using banking facilities so they use bitcoin applications for sending money anywhere through one tap.

Volatility

The major concern of the people who invest in bitcoin is its volatility. Cryptocurrency is highly unstable and goes through rapid change which puts the investors in a doubtful position. If you go through the record of bitcoin prices over the last three years, you will realize how rapidly its prices change. 

At the beginning of 2018, bitcoin reached its peak value of $20,000 per coin but it went through a drastic change and by the end of the year, its price hit $4000 per coin. Records also show that bitcoin reacts to whims and news as well. Even a false rumors can greatly impact the value of bitcoin. On the other hand, gold is not unstable and can be relied on more than cryptocurrencies.

Conclusion:

You have an open choice of investing in cryptocurrency or gold but, if you are seeking a more stable and secure form of investing, you should opt for gold. There may be times when cryptocurrency can generate more profit than gold but investors seek stability when investing.