Digital Coins vs. Physical Coins (Part 2)
There are arguments both for and against the use of digital coins. Although digital currencies and the whole concept of cryptocurrency are closely aligned with the digital revolution and technological advancements, the environmental impact cannot be ignored.
Let’s dive further into this argument and see what the future holds for digital currencies.
How is Digital Currency Beneficial?
Source for Hedging
Digital coins act as a great store of value. Over the last few years, their values have shot up rapidly to new heights. Bitcoin—unarguably the most well-known digital coin globally—went up by around 255% in value since last year. This can be a great store of value in case there are recessionary periods in the economy. It helps to bean effective inflation hedge as well.
Investment Purposes
Furthermore, it’s a very attractive investment option as well. Despite the high volatility levels that digital coins carry, the lure of high profits is unbeatable. As many as an estimated 46 million Americans now own Bitcoin.
Streamlined Payments
Another distinctive feature of digital coins is that they are straightforward to use due to low transaction costs. The transactions are also done quicker. Thus, the whole payment system is streamlined.
Security
Since digital coins exist entirely on digital platforms, they are risk of theft is lower than physical coins and cash.
Environmental Impacts
The mining process of digital coins often comes under intense scrutiny. The use of fossil fuels for the mining process has been termed dangerous for the atmosphere due to high carbon emissions.
It also uses a high amount of electricity to power the computers used.
Other Arguments against Digital Currencies
Apart from the immense carbon footprint and high consumption of resources, digital currencies are also highly volatile, more so than what asset classes usually are. This is because the crypto market runs mostly on a speculation basis, which can lead to price bubbles that can be dangerous.
Although many people are still doubtful about the concept of digital currencies, there is no denying that it’s one for the future. Regardless, if you still believe investing in gold and silver bullion bars is a better place to shift your investments to, you can get in touch with us at Orion Metal Exchange.
We offer a wide range of gold, silver, platinum, and palladium coins. Moreover, we also guide you on how to invest in gold. You are guaranteed to get the complete package!
