Over the past few years, Bitcoin has risen in popularity to the point where you can’t avoid hearing about it. Many are calling it digital gold due to its value and scarcity. Since cryptocurrency is all internet-based, it’s easy for you to buy, sell, and trade it. Many companies are also now recognizing bitcoin as an actual form of currency.
The question is, is that a good enough reason to invest in it? Gold vs. bitcoin, should you go with the tried and true or head the digital route? Which is the better investment? We can help you weigh your options. Check out this guide to learn more about these two powerhouses.
The first contender is gold. It’s been around forever, and for good reason. Gold was a source of security during horrible economic times such as the Great Recession. It’s recognized by federal organizations and banks. Its high value is due to the fact that you can’t manufacture it. You have to mine it out of the earth, meaning that it’s in limited supply.
Despite its price, gold investing is accessible to the common man. You’ve most likely seen the commercials shouting at you that they’ll take your gold. If you have any jewelry sitting around your home, you can use it to get your investment portfolio going.
Bitcoin is a digital currency that’s only recently started taking the world by storm. It hasn’t pulled people through any economic crisis, but that doesn’t mean that you can’t invest in crypto.
Like gold, cryptocurrency is in limited supply. There are only about 21 million bitcoins floating around out there. That sounds like a lot, but with the high demand, it’s not.
Bitcoin isn’t an official currency of the federal banks, and its legality can be shaky at best in some states, but with the coin shortage, many people have been going the digital route. Companies have begun seeing it as an official form of currency.
With the run on the bank making everyone nervous many are looking for alternative investments to put their money in rather than using the bank. Banks use fractional reserve banking, meaning they only have a certain amount of liquidatable currency on hand at any given time. Read on to learn more about what a run on the bank is and what it could mean for your financial future.
This means if something were to happen in the economy and people panic, they will likely all try to remove their money at the same time, this would cause a hardship on the bank but more so it may cause a hardship on the banking customer when they can’t withdraw all their money.
With this fear of a run on the bank, investors are starting to hedge their bets by using other investment vehicles that are more safe, like Cryptocurrency, NFTs, Gold, and art investments. Since the bank doesn’t control the cryptocurrency like they control cash or funds in the bank it would be safer protection to hedge and diversify their investments like this. For all these reasons, many are looking for alternative ways to hedge their bets, and gold or Bitcoin are excellent options.
So, now let’s get down to business. We’ve talked about the merits of both forms of currency, but which one is the best? When weighing bitcoin vs. gold, you have to think about security.
Gold has been around a lot longer, so people trust it more than bitcoin, which makes it the safest choice.
Bitcoin takes a certain level of tech-savviness to invest in because it’s all digital. At the same time, with bitcoin ATMs popping up all over, you can buy and sell digital currency easily. your choice boils-down to your investment goals.
Gold Vs. Bitcoin: What Is the Better Investment?
When it comes time to start up your investment portfolio, you have two important choices to make. Gold vs. bitcoin, which one should you dump your assets into.
They both have their own merits. You can go the safe route with gold, or take a few risks with bitcoin. It’s all up to you and your goals.
If you’re looking for more financial advice that will help you make the right investments, consult an advisor where you do your banking.