Bitcoin or gold? What is the future of investments


Has gold lost its luster? The past 20 years would certainly show gold as an asset that has just grown over time, but 2021 is another story. Gold is down 9% while other classes like real estate, stocks and the dollar have risen. What is surprising is that the value of the dollar generally moves in tandem with the precious metals, but even the greenback has risen 3% this year.

During a recession, the typical course of action would be to use gold as a hedge against stock market volatility. However, a more recent approach challenges this proven safe-haven strategy, which has proven effective in previous cases. Bitcoin, introduced in 2009, marked the start of a new era in the history of digital currencies. With many exchanges like
CoinSwitch Kuber
Simplifying cryptography, Bitcoin has gained popularity among retail investors.

As a dominant cryptocurrency, bitcoin has many characteristics of a general currency, as well as some distinct characteristics that can make it a viable safe haven. However, it is up to the individual investor to decide whether bitcoin is an appropriate safe haven in times of market turbulence.

With gold moving sideways and cryptocurrencies experiencing a massive resurgence over the past couple of years, we are preparing a case to understand which is the better investment – gold or bitcoin?

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Gold: the safe asset of all time

Gold has been around for thousands of years as a safe and reliable asset. One of the main reasons people respect gold is that it is a reliable source of protection that has stood the test of time, whereas Bitcoin did not exist during a great crisis. financial crisis such as the Great Depression (although it was created specifically to prevent such a crisis).

Central banks, major government organizations, pension funds and shrewd wealth management offices have always had some of their assets invested in gold.

The value of gold slows down:

Even though gold prices have fluctuated in the short term, just like the stock market, the value of the precious metal has remained relatively stable over time. Given that we are living in a period of high market volatility, it may be prudent to invest part of your portfolio in gold.

The price of gold can rise due to inflation, making it a good inflation hedge investment. When prices increase, the value of fiat currencies decreases, but the value of gold also increases normally. That being said, however, Bitcoin is slowly growing as an asset with incredible potential for both short and long term investments.

India, which is one of the world’s largest gold investors, has also seen a huge boom in its bitcoin industry. Thanks to crypto exchanges like CoinSwitch Kuber and others, more and more people are investing digitally in cryptocurrencies like Bitcoin, right from the comfort of their homes. This begs the question: is cryptocurrency really the future of investing?

Bitcoin: digital gold
Bitcoin is the world’s most valuable cryptocurrency, measured by market capitalization.

Unlike the stock market, which is only open for transactions throughout the week from 9:30 a.m. to 4:00 p.m. EST, cryptocurrency exchanges are open 24 hours a day, seven days a week, allowing traders to trade Bitcoin and ‘other digital products. or assets 24 hours a day.

Another important feature of Bitcoin is that it has a limited supply, which means that there will only ever be a total of 21 million Bitcoins in circulation at any given time. This means that if your bet on Bitcoin turns out to be positive, its value will only increase over time.

Bitcoin is similar to gold in that it is not issued by a central banking system or a federal government. Bitcoin is a decentralized cryptocurrency that is produced by the collective computing power of “miners”, individuals and groups of people who work to verify transactions that take place on the Bitcoin network, and are then cleared with bitcoins in exchange of their time, computing power, and effort.

In order to prevent the market from being oversaturated, the Bitcoin protocol specifies that these rewards are regularly halved, ensuring that the final bitcoin will not be awarded until around the year 2140. Now, if you are looking to invest, here are a few. tips to help you in your decision making:

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Compare the two:

Gold will always hold its value for many years and will increase over time. If you’re looking for a comparison between the two, here are a few to get you started:

  1. Transparency: The old trading, weighing and tracking systems are flawless. It is difficult to steal, counterfeit or alter metal. Bitcoin’s encrypted and decentralized system and its complex algorithms make it difficult to manipulate, making it one of the most secure systems developed for the future.
  2. Scarcity: Gold and bitcoin are both scarce. So, by 2140, the 21 million Bitcoin will be in circulation thanks to the halving of the mining reward. While we know there are only 21 million bitcoins, we don’t know when all the gold will be mined. Some companies are looking into mining gold from asteroids in the future.
  3. Reference value : Gold has long been used for a variety of purposes, from jewelry to dentistry, electronics and more. In addition to refocusing attention on blockchain technology, bitcoin has significant intrinsic value.

    Millions of people lack basic banking and financial services like credit. These people can send money around the world for free with bitcoin. Bitcoin’s real potential as a non-banking alternative has yet to be fully realized.

  4. To flow: A fairly liquid market exists for both gold and Bitcoin.
  5. KING : Gold, however, has not seen much growth this year. If you had invested Rs. 10,000 each on January 1, 2021, your Bitcoin investment would have returned approx. Rs. 39,000 today! (Source)The same investment in gold would have remained largely unchanged.

Which is the best investment for 2021?
Ultimately, the question comes down to: what should I invest in 2021? Gold or Bitcoin? Let us help you figure this out:

Bitcoin gained a massive $ 1,000 billion market cap at the start of 2021. However, the market collapsed and most of the gains were wiped out around May. It still managed to rally and is now valued at ~ Rs. 34 Lakh / 1 Bitcoin, a big increase from its January price of Rs. 21.38 Lakh.

If we follow this data, 2021 appears to be the year of Bitcoin. Despite a stock market crash in May 2021, it has recovered to stabilize at a respectable pace this year.

With these tips in mind, you can make a smart decision and invest in Bitcoin if you haven’t already started. It has a face to gold, and with emerging trends, bitcoin and other cryptos will continue to grow over time, even if the volatility factor is high.

In addition, the availability of crypto applications and exchanges such as
CoinSwitch Kuber
makes it all the easier to go ahead and make investing a straightforward process, making bitcoin an asset you should consider.

Disclaimer: The above content is not editorial and TIL hereby disclaims all warranties, express or implied, relating thereto. TIL does not necessarily guarantee, guarantee or endorse any of the above content, nor is it responsible for it in any way. The article does not constitute investment advice. Please take all necessary steps to ensure that the information and content provided is correct, up-to-date and verified.


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