Everyone is looking for the best investment opportunities. Gold, the yellow metal, has carried high value since time immemorial. The rarity of the metal has ensured that its price never flags. As such, gold has been the safest and more reliable instrument for investment for many people. Currently, there is a rival to compete with gold for the top spot among investment instruments. The bitcoin is fast catching up to the allure of gold. The recent surge in bitcoin value, where 1 coin now trades for $10,000, has invariably led to comparisons with gold.
So, should you invest in gold? Or should you explore opportunities with bitcoin?
There is no doubt that gold is the more accepted investment instrument. Investment portfolios include gold as an acceptable choice. Few investment companies, however, are looking at bitcoin as an investment. This may change in the coming few months, as bitcoin prices surge. There are other reasons investors are considering the investment options offered by bitcoins.
As far as price is concerned, gold has had a golden run in the last few years. Its price shot through the roof and people who never invested in gold were lured to investing in this tool. However, recently, gold has shown devaluation. The prices have been going down and investors cannot quite figure out why. One reason may be lowered demand from traditionally strong markets such as Asia. Gold’s loss has been the gain for bitcoin as investors, looking for profitable alternatives, turn to bitcoin, whose prices have been surging.
Gold has long been seen as a safe, stable investment choice. The prices were not very prone to fluctuations. Returns were almost guaranteed. However, the steep hike in gold prices in recent years and the growth plateau has made investors wonder if gold is as safe as they thought it to be. Bitcoin too has a checkered history. It has gained much value in the past year. However, there are doubts among many about the stability of the currency. In particular, blockchain allows for different developments. The rapid developments make investors wonder if bitcoin is a stable investment. Bitcoin has been around for many years. It has not gone out of favor, and its value has risen. As regulations change and the financial world wakes up to possibilities, investors are also looking at the long-term implications on bitcoin. It might offer more value in the long term.
It is easier to sell gold for established currency. Bitcoin is more difficult to trade, as it can be traded on select exchanges, for other digital currency, or select national currencies. This makes gold the investment of choice for many people. However, if you are not looking to immediately sell the investment, you might want to consider bitcoin. Holding on to the currency might offer good returns, as people who got the coins in 2012 can tell you.
The demand and supply theory tells us that the rarer a product, the more its price. Gold is one such product. The rarity of this metal is one of the reasons behind its high value. It is sobering to note that bitcoin is even rarer. There are around 2 billion bitcoins in the world. This begs the question – since bitcoin is rarer, will its price go many times over that of gold. Bitcoin can be mined, like gold. The process is considered difficult, similar to mining gold. However, right now, bitcoin has not attained that value, in comparison with gold. That said, there is always the option of investing in bitcoin, holding on to it or mining it, and then seeing the currency grow.
Gold and bitcoin offer different security measures. Gold can be traced easily, and this makes it less prone to theft. However, it also can make it unsafe for investors who want to keep their investments secret. The blockchain based bitcoin offers more security since the transactions cannot be traced. Also, blockchains cannot be tampered with. Thus, in a situation where the investor wants to be sure that the value of the currency has not been tampered with, bitcoin is the acceptable investment.
Bitcoin is also being accepted in different industries. There are several reasons behind the adoption of bitcoin. Lowered cost of a transaction is one. Also, bitcoin payments can be linked to all types of online activities which involve financial transactions. This increasing acceptance of bitcoin might be one reason for burgeoning popularity. This is still lower than the acceptance of gold since blockchain technology is hard to understand for people who are not technically adept. As promoters make efforts to help ease bitcoin use, this could change.
Gold remains more widely accepted. For investors looking to play safe, this might remain the safe bet. Investors, who can afford to take a slight risk, might want to invest in bitcoin, which has been steadily increasing in value, finding mainstream acceptance, and is attracting investors.
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