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Bitcoin vs. Gold: Which one to choose?

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The situation with the US dollar and its economy has led many to ask: What should I invest in? Gold or Bitcoin? So here we will talk about the two options.

Indecision: Do I take refuge in Bitcoin or gold?

The debate between gold and Bitcoin is by no means recent, but it remains in force. In fact, Bitcoin is known to many as the digital gold.

Gold, meanwhile, has always been known as the perfect haven for investors. However, it seems that he found his perfect rival, and that has questioned his potential.

, Bitcoin vs. Gold: Which one to choose?, Forex-News, Forex-News

However, the dilemma between the two assets becomes more relevant in light of the latest economic, political and social events that, to be honest, have us all concerned. So what is better?

Price

In order to compare them, we must take into account several factors, among them the market valuation and the performance of both.

Looking back, to be more precise in March, the price of Bitcoin took a hard hit in the wake of the newly declared pandemic at the time.

, Bitcoin vs. Gold: Which one to choose?, Forex-News, Forex-News
Graph where we see the valuation of gold and Bitcoin over time. Source: Yahoo! Finance

So, while Bitcoin was taking a beating for COVID-19, Gold experienced steady growth in its price. Since then, however, the price of BTC has recovered and that of gold has reached new all-time highs.

Bitcoin is currently trading at $ 11,305, according to CryptoTrend’s Crypto Online tool. Meanwhile, gold is currently valued at $ 1,990 according to Yahoo! Finance.

Do they have similar characteristics?

The question is very difficult. The truth is that, although Bitcoin is called as digital gold, it is a debate that lasts and is modified depending on the behavior of the assets.

For example, after Black Thursday In March, many sentenced the death of Bitcoin once again. In fact, many were disappointed that it was not the safe haven they expected. However, then they turned again in favor of the cryptocurrency.

They certainly have many similarities, but they also have a very marked difference.

  1. Gold in the past was used as payment method, although it was discontinued due to the cumbersome nature of the process. Bitcoin, meanwhile, can be used for fast, low-cost money transfers. However, it has not yet been adopted as a conventional payment method.
  2. According to the shortageThey are both scarce but gold has a truly unknown total supply. On the contrary, BTC has something in favor and that is that we know the maximum supply.
  3. One characteristic that plays against gold is how easy it can be counterfeit and reduce its purity. Whereas, Bitcoin is totally transparent.
  4. Have you ever seen someone carry a bullion down the street and make transactions with the? I do not and it is that, making a transaction with gold can take weeks. Whereas, BTC can be transferred from anywhere and whenever via a cell phone.
  5. And not to mention the divisibilityCan you divide a gold bullion into various parts from home? The answer is no. Meanwhile, Bitcoin is completely divisible.

Okay, I think it is clear that Bitcoin has a number of advantages over gold. But, in my opinion, you can’t point to any of these assets and say “No, you don’t work”.

Both gold and Bitcoin have something to offer and in your balance of pros and cons you can define which one suits you best. So it would be very unwise to claim that gold is not a good option. In the end it is a fairly complex problem that requires a particular investment study.

In this sense, gold and Bitcoin seem to be attractive investments if you want to keep the value of your money over time. So the bottom line is: Let’s not underestimate gold or Bitcoin!

What do the experts think?

As we mentioned before, the search for an active refuge is not unique or recent. The events that have taken place in the world have generated concern and, therefore, has generated an analysis of the question: Where do I invest to save my money?

Remember that Paul Tudor Jones, the founder of the hedge fund Tudor Investment Corporation, revealed not long ago that Bitcoin was listed within its investment portfolio.

That happened on May 7, when Bloomberg reported that Jones was acquiring Bitcoin with the aim of protecting his investments from the inflation that could be generated as a result of the printing of money by central banks.

A beautiful moment for Bitcoin! But, it was not the only one. Recently a gold-loving investor, Dennis Gartman, he assured Bloomberg that he had made the decision to distance himself from gold because the market was too crowded.

“Suddenly, there are too many people involved in the gold market”, said. And it is that, gold certainly has been considered as a safe haven for too long and, therefore, it has been the first option of many.

Given Gartman’s comment, Robert Kiyosaki, author of “Rich Dad, Poor Dad”, pointed to silver and Bitcoin as options if you want to get out of the gold market.

In this sense, we recommend to all our readers to make a timely study of their investment options to make the best decisions. Never get carried away by what others say!



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