Cryptocurrency vs. Precious Metals Which One Wins?
If, two decades ago, somebody had mentioned Bitcoins to you, you might have been left scratching your head in confusion as the concept of cryptocurrency was alien to the whole world. Fast forward to 2009, when this idea started to gain traction, and people started to invest in Bitcoin as an alternative means to paper currency.
Today, over a decade later, cryptocurrency stands to be one of the most debated subjects around the world as the investment avenue, despite its benefits, has had a fair share of scandals. On the other hand, investing in precious metals has been a tried and tested mantra of seasoned investors who, to this date, vouch for the abundance of benefits the likes of gold and silver have to offer.
If you have been thinking of investing in gold but are also lured by the prospect of digital currency such as Bitcoin, then here’s a blog to help you clear your mind. Let’s talk about the downsides of investing in cryptocurrency that make investing in precious metals a great idea, even in 2023!
Cons of Investing in Cryptocurrency
Here are some of the reasons why cryptocurrencies, such as Bitcoins, are less popular than precious metal investments.
If you look at the brief history of cryptocurrency, this digital currency has been extremely volatile. In fact, according to one report, a cryptocurrency lost 30 percent of its value within a single day. While we do not deny that the same digital currency has rapidly spiked too in some events, the volatile nature of crypto makes it a risk-prone investment.
More Risk of Theft and Loss
Like volatility, cryptocurrency is also more prone to theft or loss. This is because, like all digital currencies, crypto databases are susceptible to cyberattacks and breaches, resulting in losses of billions of dollars. Moreover, in 2022, $3.8 billion worth of cryptocurrency was lost by investors owing to market volatility or cyberattacks. This is a 58 percent rise from the year before that.
Because cryptocurrency is a new avenue, it’s largely unregulated. This further increases the risks of investing in cryptocurrency as digital money is often susceptible to being used in criminal activities or acquired through illegal means.
Rapidly Changing Technology
While investing in gold has been a centuries-old tradition, people are still new to investing in crypto. And what further complicates the matter is that crypto technology is changing every day and still remains underdeveloped.
More Options, More Confusion
There are thousands of cryptocurrencies out there. But not all of them are reliable. On the other hand, investing in precious metals is fairly simple, as there are eight types of precious metals that are renowned for their great returns, stability, and tangibility.
Difficult to Liquidate Assets
Buying and selling cryptocurrency may not be as easy as buying gold or selling silver coins. This is because cryptocurrency has its ups and downs very quickly, and for many, it remains a skeptical deal to invest in it.
Upsides of Investing in Precious Metals
On the other hand, investing in precious metals such as gold and silver has a wide range of benefits and upsides. Below are some reasons you should be investing in gold to make money.
- Stable in Nature: Unlike crypto, the precious metal market is less volatile and offers greater stability.
- Lesser Risks with Investment: Investing in precious metals is a lesser risky decision due to the predictable nature of the market.
- Long Withstanding Reputation: Gold has been around for 4,000 years, and most precious metals are centuries old. This further boosts investors’ confidence.
- Legal And Accepted Globally: Precious metals, unlike cryptocurrency, are respected and accepted worldwide. There are no loopholes to exploit when investing in gold or silver.
- Easy to Buy and Sell: Buying gold and silver or selling any precious metal takes minutes. You can even buy gold coins online and not worry about getting scammed!
Invest in Precious Metals, Secure Your Future!
While cryptocurrency may someday bring a paradigm shift in paper currency’s value, it’s hard for it to throw off precious metals such as gold and silver. So if you’re looking for a long-term investment, contact us at Orion Metal Exchange.
With over 50 years of experience in precious metals, we’re a reputable precious metal investment company. We also help our clients set up gold and silver IRAs and guide them on how to invest in gold for greater profits!