Precious Metals vs. Cryptocurrencies: Which One Wins?
During the current economically stressful times brought about by the COVID-19 pandemic, investors are looking for safe-haven investments. If you’re one of them, there are two dominating investment choices to help you float through these challenging times.
The ultimate selection lies between choosing gold and silver, the precious metals that have retained their value throughout the years or bitcoin, the cryptocurrency that brought a revolution in the financial world. If you’re confused between the two, here are some ways you can decide which one wins:
Transparency and safety
The system set in place for gold’s selling, purchase, weighing, and tracking is almost flawless. While its current counterpart, bitcoin, also known as the ‘digital gold,’ also shares some properties with the precious metal, the process ensures its safety hasn’t been devised yet.
Although the encrypted and decentralized system, along with sophisticated algorithms, provides some semblance of protection to the digital currency, bitcoin traders should be aware of the possible security breaches.
In a highly turbulent event, bitcoins worth approximately $460 million went missing from user accounts. Something like this is very unlikely to happen to gold, a physical asset that you can keep safe in a locker.
Perhaps one of the most significant concerns that arise when you’re looking to buy bitcoins is their volatility. During the last few years only, bitcoin has seen dramatic ups and downs in its market value.
One bitcoin, which stood at a rate of $20,000 at the beginning to 2018, soon plummeted to a mere $4,000 twelve months later.
At the same time, gold has retained its value over time and rarely ever rises or decreases significantly. This is because gold has a static supply, which keeps its market value somewhat steady. Hence, the precious metal seems like a more favorable investment in terms of market volatility.
While gold has limited applications outside of being used as a physical currency, bitcoin offers a new and improved way of transferring money across the globe.
Whether you want to gift someone the exclusive cryptocurrency or purchase something with it, you can do so with a few clicks on your computer screen. For those who like this kind of convenience, bitcoins are a more suitable investment.
At Orion Metal Exchange, we have a stunning collection of high-quality gold and silver coins and bullions that can significantly improve your investment portfolio. We also offer a buyback commitment on all our products.