Gold Vs. Bitcoin: Which Is Worth Your Investment?
As the world has become more connected via globalization and advanced communication, economic and geographical issues in one country affects other counties. After the global pandemic in 2019, experts are concerned that the US is headed for another recession.
In times like these, investors want to hedge over inflations to lose as little as possible if it occurs. You might be wondering what investment option would be best to protect your finances. You have the option of investing in precious metals like gold. However, Bitcoin has also caught the attention of investors. Let’s compare both so you can make the right decision on which one to invest in.
Gold use can date back to early civilization, where they used it as jewelry and a status symbol for power. Evidence claims that Egyptians used it in 5000 BCE while other ancient civilizations also used gold as some form of jewelry or art piece. It was first used as a currency in the late 8th century BCE in Asia. Today, it is widely used in electronics and dentistry practices. The wide use of gold today has kept its value maintained.
Bitcoin is a cryptocurrency that was formed in 2009. Relatively being a newer form of digital currency, it has lesser use compared to gold. However, with the collaboration of financial technology, Bitcoin can be used for lending, borrowing, trading, and more. But as Bitcoin is a non-tangible asset, they also have the potential of becoming completely useless.
Both gold and Bitcoin are liquid assets. But gold is a more liquid asset than bitcoins and other cryptocurrencies. Bitcoin due to its value, is hard to liquidate. Cryptocurrency exchanges have a limit to how much a day you can liquidate. If you own a small amount of Bitcoin it will be a more liquid asset than gold. However, owning a large amount during a Bitcoin crash can be very risky.
Gold has lower volatility than Bitcoin as it’s more closely regulated. Over the years, the price of Bitcoin has seen significant changes. Its prices have gone from all-time high peaks to record-breaking lows due to media influence and uncertainty in the global market.
Choosing between gold and Bitcoin is up to you. Consider how much risk tolerance you possess and what investment goals you want to accomplish before investing in either of them.
If you’re looking for a trusted dealer to make the gold investment, contact Orion Metal Exchange. We are a trusted and reliable online precious metal storage company. We offer IRA investment services and help you identify what investment in the precious metal you should make. If you want to buy silver or gold coins online, get them at a cost-affordable price from us. Contact us to learn more about our services.