If I ask if you have $120000 and you have to invest that amount, what medium will you choose for investment – Cryptocurrency or popularly known as Bitcoin or will you invest it in gold?
Still in doubt which one is more optimal for investment? Let’s figure it out.
Since ancient times gold is considered to be the best medium to invest in. Investors believe that gold is an investment that diversifies risks. There is no doubt gold is something that never goes out of trend when we talk about future contracts and by-products. Gold is assumed to have the best market, and is a safer choice.
Maybe this is the reason our ancestors used to invest into gold articles. But one point worth pondering over is that gold is driven by the policy of Demand and Supply, including speculative demands. This is the reason why it’s saving and disposal plays a crucial role in affecting its price than its consumption. On the other hand, we have ‘Cryptocurrency’ – which is quickly becoming the modern way of investment and currency of the online generation. Unlike gold, this is not a tangible currency, but is just a digital asset that emphasizes promoting secure transactions and to control the creation of an additional unit of currencies.
Cryptocurrency is sometimes preferred over gold, reason being that the supply level of digital currency is fixed and transparent, and that removes dread of inflation. Fear of diminished value of the asset due to overproduction of currency is avoidable. We know gold is a sneakily inflationary asset. It is apparently said that with the digital revolution the value of the digital currency will continuously grow.
However, we cannot deny the fact that gold is an ancient method of investment. This is the reason Bitcoin faces issues such as a lack of trust and reliability. Gold has more than a thousand year history, and this is why people are willing to invest into it. Gold is considered to be ‘tried and true money’. Also gold is not dependent on any kind of internet service, thus it is protected from any kind of internet breakdown. Gold is immune to any kind of technical interruption and fraud. Gold is tangible, and people trust in physically existent assets.
But one thing we also know that value of gold is volatile. We also know that cryptocurrency is pseudonymous, that is it is not tied to any real world entity. This is the modern way of the transaction, and we are moving towards a digital society which is why digital money is something fascinating and more appealing for generation Y.
Still, different people have their own perception on this matter. It is a matter of choice, principle, and your belief in each currency, and there is no denying each comes with their own sets of pros and cons.