Gold vs Bitcoin: What’s The Better Way To Protect Your Investments?
Before Bitcoin exploded into the crazy figures we are seeing now, many people debated about whether it was better to park cash in gold or a mutual fund. Now the question is if it is better to buy gold or Bitcoin!
Bitcoin has a reputation as being volatile while gold is seen as the picture of stability. While there is a risk in either one, it is seen as more risky to park your cash in Bitcoin. Is that really the case, though? It definitely needs to be looked at more deeply to get a better picture.
In this article, we will go over whether it makes more sense to put your money in a Bitcoin investment or gold.
Bitcoin and volatility
There is no question that Bitcoin can be a bit volatile. In fact, that is what has led to the creation of several other cryptocurrencies called stablecoins. These are tied to things like gold and fiat currency. An example is Tether that is held in US dollars to keep it stable. If you are looking to park money then these coins are good to own and it is easy to sell USDT online when you think the crisis has passed.
However, it should be noted that if you had bought Bitcoin in 2017 when people were going crazy over it and held onto it past the crash, it would be worth about four times more now than then. If you had bought $100,000 worth of Bitcoin at that point when things looked bleak not long after, then you would have $400,000 today. And it shows no signs of slowing down.
There is a risk of losing money if you plan to keep it a short time, but over the long term it looks more stable.
Gold is stable
I mentioned in the last section how stablecoins can be tied to gold for stability. And that’s because gold rarely crashes. It has periods where its value drops, however so in some ways it is not that different than Bitcoin. One area where it differs is that it rarely reaches the stratosphere like Bitcoin has.
It is easy to buy in physical form, too, which people really like. If you are old fashioned, then god still makes perfect sense since you can tough it whereas Bitcoin doesn’t actually exist anywhere except in a complex encrypted code.
Another plus is that there are few countries that make owning gold illegal, although there are limits as to how much you can own in some.
There seems to be no limit to how much Bitcoin can be held in those countries that do allow it to be bought and traded.
They both have pros and cons, but there is a best option depending on your needs. If you are looking for something short term then gold is likely the better answer. If you don’t mind holding for a while then you will likely make more money while you protect your assets with Bitcoin.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.