Bitcoin or Gold: Where should you invest?
The cryptocurrency market is expanding and its applications are also on the growing path. The initial resistance against Bitcoin had made the path to success difficult, but Bitcoin evolved to become one of the leading and most valued cryptocurrencies. Many investors are considering Bitcoin equivalent to gold. But is it true? Will bitcoin value become the new gold?
Gold investment- If we have to pick a safe choice of investment, then gold tops the list. Across the globe, most people believe that investing in gold will give them a long-term return and hence it is the safest option of doing so. What has made people question the investment in gold is that gold prices are down by 9%, whereas an investment in other assets like real estate equities and dollars has steadily risen? In fact, with a search for cryptocurrency, there has been a considerable shift in the interest of traders. Many investors still consider gold to be the safest option.
Cryptocurrency/ Bitcoin- whenever we say cryptocurrency, it is often synonymously used with Bitcoin. It is the pioneering decentralized currency that was introduced in 2009. Since its launch date, Bitcoin has undergone a drastic shift in pricing. Starting at less than a dollar, this cryptocurrency is now holding a value of more than 30,000 U.S. dollars. This has clearly enticed many investors in traders. What is most surprising is that even the millennials are now showing keen interest in investing in Bitcoin. So, what makes Bitcoin so popular?
It is the key features of this cryptocurrency that has made it garner a lot of attention in the present time. In addition, interest from big businesses like Tesla PayPal has also been a key driver of the growth of cryptocurrencies. Unlike the earlier times, today, Bitcoin has multiple applications. It is used for making payments, making hotel bookings, and you can even pay for your coffee. There is also a rise in the number of Bitcoin ATMs, and the growth of cryptocurrency trading is not hidden from anyone. Hence if you are keen on making an investment in cryptocurrencies, this is the right time to start.
Platforms have made it easier for traders to register daily and start the trading journey.
Finalizing the best cryptocurrency exchange platform
With thousands of cryptocurrencies circulating in the market, choosing the best one can be an overwhelming decision. Hence it becomes significant that you shortlist the best one. There are certain key aspects that you must take into consideration when planning to make an investment in cryptocurrency or Bitcoin:
1. Do the basic market research and fundamental analysis – Before making an investment decision, it is important to do the fundamental analysis in the market. This revolves around the history of the cryptocurrency, Present trend and the scope in the future.
2. Choose the right wallet – It is important to choose the wallet before you start your trading journey. Whether you choose a hot wallet or a cold wallet, you must keep the keys to the wallet secured.
3. Join the Bitcoin community – The best way to understand how the market is performing is to join the communities by reading it and GitHub. These are the places where you will find Bitcoin stalwarts sharing their point of view on the trend of cryptocurrencies and their future.
Summary of Bitcoin and Gold Comparison
|Regulation||Many countries have introduced regulation. While some don’t have it.||Some restriction exists|
|Use||It is witnessing a growing use as smart contracts. and many retail stores are accepting Bitcoin now.||Applications across the different industry is not established|
|Liquidity||Varies from market to market||Depends on the type of asset|
|Volatility||Highly volatile. Abrupt rise and fall in the value||It is not that abrupt.|
We have covered the details of gold and Bitcoin; while gold is witnessing a downfall, it still remains the most trustworthy trading option for many. Bitcoin, on the other hand, offers a promise of a prosperous future. Hence when it comes to choosing to invest between the two of them, it depends on the risk-taking capability of the individual investor.