If you are looking to invest in gold but wish to explore the prospects of buying Bitcoin simultaneously, it is best to have a wider understanding of both gold and Bitcoin.
When it comes to the question of whether gold is better than Bitcoin, there are two schools of thought on this matter. There are arguments that the physical value of gold, with a rich history, outweighs that of Bitcoin's digital one. Others would make the case for Bitcoin having several benefits over gold as a digit currency of the future.
What Makes Gold a Better Investment?
The precious yellow metal is rare, durable, and highly flexible. The main benefit of gold comes from being a true, tested form of an asset over history. This commodity has been around to withstand the test of time. Sure, gold prices have seen their fair share of fluctuations, but that has not taken away the value of what it means to investors to store gold.
Investors who buy gold bullion know the true appeal of precious metals. It can be purchased in any amount, from a tiny segment of a gram to 1-ounce and even 1-kilogram bars. Gold is highly malleable and almost non-corrosive, and its flexibility allows the commodity to have applications in both primary and tertiary sectors.
But the biggest takeaway gold has over Bitcoin is market value. Sure, a single Bitcoin may be worth far more than the price of gold per ounce, but the value of Bitcoin is not steady, undependable, and most importantly, unpredictable. There has and always will be a liquid market for gold. Furthermore, gold is known to perform during a financial crisis and even is a strong hedge against inflation. Bitcoin is yet to pass the test of how it performs during crisis periods.
How Is Bitcoin Better Than Gold?
There are many pundits, particularly tech enthusiasts, who have nothing but high praise for cryptocurrency, hailing it as the currency of the future. The appeal of Bitcoin comes from its widespread marketing and unique value. From the moment of its inception, a single Bitcoin was worth over USD 30, slowly growing and hitting USD 60,000 mark. In recent times, the price has sharply fallen to almost half the value. A single Bitcoin is worth far more than gold in terms of value.
At the same time, aside from being similar to fiat currency, transactions through Bitcoin can happen without a central bank oversight. That means the cryptocurrency can be transferred electronically from user to user.
Furthermore, the supply of Bitcoin is finite. As it is based on technical computer mechanics, Bitcoin cannot be tampered with so easily, making it a volatile asset.
There can be many arguments as to which is better for investors in the long run. But in the end, it comes to historical value based on past and present data. In such a case, the outlook of gold seems better than that of Bitcoin.
It is early to say that we can write off cryptocurrency. For investors who would prefer to convert cryptocurrencies into gold, SwissBullion.eu accepts payments for precious metals in a range of cryptocurrencies, including Bitcoin.