Bitcoin or gold? What is the future of investment?by Mobiloitte Technologies Marketing Manager
Has gold lost? The last 20 years would have shown gold as a recently grown commodity but 2021 is a different story. Gold decreased by 9% while other classes including housing, finance, and the dollar increased. Surprisingly, the value of the dollar generally goes hand in hand with precious metals, but even the greenback has grown by 3% this year.
In a time of recession, a common practice would be to use gold as a hedge against stock market volatility. However, the new approach challenges this proven and safe real estate strategy, which has proven to be effective in the past. Bitcoin, launched in 2009, marked the beginning of a new era in the history of digital finance. With many exchanges like the CoinSwitch Kuber that simplifies crypto, Bitcoin has gained a lot of grip among trading investors.
With gold moving aside and cryptocurrencies seeing a major rise in the last two years, we are drawing the case to understand which investment is better - gold or bitcoin?
Gold: Safe goods for all time
Gold has been around for thousands of years as a safe and reliable commodity. The main reason why people respect gold is that it is a reliable source of protection that has been around for a long time, and Bitcoin never existed during a major financial crisis such as the Great Depression (although it was created specifically to avoid that problem).
Major banks, key government agencies, pension funds, and astute economic management offices have always had part of their assets invested in gold.
Gold price drops:
Although the price of gold has changed in the short term, much like the stock market, the value of precious metals remains strong over time. Because we live in a time of high market volatility, it may be wise to invest some of your portfolios in gold.
Gold prices may rise due to inflation, making it a good investment in inflation. As prices rise, the price of fiat money decreases, but the price of gold usually goes up with it. That being said, however, Bitcoin is growing slowly as an asset with an amazing ability to invest in the short and long term.
India, one of the world's largest gold investors, has also seen significant momentum in its bitcoin industry. Because of crypto trading like CoinSwitch Kuber and its popularity, many people are investing digitally in cryptocurrency like Bitcoin, from their homes. This begs the question - Is cryptocurrency the future of investment?
Bitcoin: Digital Gold
Bitcoin is the most important cryptocurrency in the world, compared to market capitalization.
Unlike the stock market, which is open for trading only during 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 exchange Bitcoin with other products or digital goods day and night.
Another important feature of Bitcoin is that it has a limited amount, which means that there will only be a total of 21 Bitcoins to be distributed at any one time. That means, if your bet on Bitcoin turns out to be good, it will only increase in value over time.
Bitcoin is like gold because it is not issued through a central banking system or a provincial government. Bitcoin is a low-cost cryptocurrency generated by a combination of “miners,” individuals, and groups of people working to secure transactions in the Bitcoin network, and then compensated with bitcoins in exchange for their time, computer power, and effort.
To prevent the market from becoming overcrowded, Bitcoin's rule of the law stipulates that these prizes will be halved regularly, ensuring that final payments will be made until about 2140. Now, if you want to invest, here are some tips to help you make your decisions:
To compare the two:
Gold will retain its value for many years and will increase over time. If you want to compare the two, here are a few of the first:
Openness: The ancient systems of trade, measurement, and tracking are infallible. It is difficult to steal, lie, or otherwise defile the metal. The encrypted, distributed Bitcoin system and sophisticated algorithms make it difficult to manage, making it one of the most secure systems for the future.
Scope: Gold and bitcoin are both rare. Therefore, by 2140, all 21 million Bitcoin will be distributed through the mining industry. Although we know there are only 21 million bitcoins, we do not know when all the gold will be mined. Some firms are exploring gold mines from asteroids in the future.
Basic value: Gold has long been used for a variety of purposes, from jewelry to dentistry, electronics, and more. Aside from re-focusing on blockchain technology, bitcoin has an important internal value.
Millions of people lack banking and basic financial services such as credit. These people can transfer money worldwide for free with bitcoin. The real power of Bitcoin as an alternative to banking is not yet fully realized.
Flow: The liquid-containing market exists for both Gold and Bitcoin.
ROI: However, gold has never seen much growth this year. If you have invested Rs. 10,000 per Jan 1, 2021, your Bitcoin investment would have returned approx. Rs. 39,000 today! The same investment in gold would remain relatively unchanged.
What is the best investment for 2021?
Finally, the question is - what should I invest in 2021? Gold or Bitcoin? Let us help you find out:
Bitcoin acquired a large market capitalization of $ 1 trillion in early 2021. However, the market crashed and most of the profits were washed away in May. It was still able to integrate and now has a total of ~ Rs. 34 Lakh / 1 Bitcoin, the largest increase from its January price of Rs. 21.38 Lakh.
If we go with this data, then 2021 looks like a year for Bitcoin. Despite the market crash in May 2021, it met to stabilize at a decent level this year.
With these tips in mind, you can make a wise decision and invest in Bitcoin if you haven’t already. It holds its face compared to gold, and in emerging ways, bitcoin and other cryptos will continue to grow over time, even if the volatility level is high.
Also, the availability of crypto-currency trading and trading platforms like CoinSwitch Kuber makes everything easier to get out and monetize a simple process, making bitcoin an asset to consider.
Created on Sep 14th 2021 05:00. Viewed 55 times.