Opinion

Gold or Bitcoin Investment; Which Options for an Investor?

Bitcoin investment - cfamedia

For centuries, gold has been considered, as a valuable piece of metal, not because of its high metallic lustre feature, but for the financial value, it carries.

In war situations, paper money can become worthless, especially, if you are, on the losing side. Purchases are, therefore, made in gold.

No government rejects a bulk of payment, made in gold.

This same position is found, among gold merchants.

Their instinct has no trust in paper promises and they are much happier to exchange, both their physical and digital currency, with gold.

This belief is centered, on the difficulty it takes, to fake gold, used in financial transactions, however, gold can be adulterated, for financial exchange.

One cannot be quite sure, sometimes, as an ounce of authentic gold, is like that, of fake gold.

Investment in gold comes with much awkwardness, as it is faced, with some security issues.

A ton of gold is, worth around $60 million. Imagine, you invested in tons of gold and in some unfortunate manner; your gold got swapped, for fake ones!

Many, who purchase gold in bulk of tons, do it in anticipation of bad times, with the belief that; its value will hardly drop.

The value in gold is a speculative asset and a lot of people, purchase it in the form of jewelry.

An average gold merchant buys the metal, with all hopes high that, the metal will keep appreciating in value.

In recent times, the precious metal has not gone up in value, as expected as, only in a few times, did it jump some hundred dollars up.

Cryptocurrencies, especially, bitcoin, since its invention, has taken the wheel of competition against gold, by encroaching on safe haven and flight capital, two of gold’s key use cases.

This, however, does not decrease the number of investments expected in gold.

The more people invest in haven assets, by bitcoin, the more attraction, to alternatives, that can offer the same service or value.

Indications, however, has shown that investors in safe haven, are more critical, of gold investment, than bitcoin.

This should, actually, be an issue for gold investment, taking into consideration that, bitcoin is like a new kid on the block, compared to gold.

Comparing Gold With Bitcoin

Annually, $200 billion of new gold gets absorbed, by gold merchants.

The gold in circulation, when recycled, matches what is needed, for consumption, therefore, any mined gold, is just extras.

This, apparently, shows that its price remains up there, with new supplies, coming into the market.

Bitcoin, on the other hand, has an annual new supply of $6.5 billion.

This is, just a tiny fraction of what gold has to offer, however, indications have shown that, a sudden spike in haven assets, will see bitcoin rise, a lot faster than gold.

Taking a look at both, from an angle of investment as an investor, you need to decide, if the recent slowdown on cryptocurrencies will make you still throw your money, into bitcoin investment, or, go for gold.


Featured Image: bitcoinexchangeguide


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