Bitcoin vs Gold ( Part 1)

9개월 전

Bitcoin Vs Gold

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Which One is Better for Investment?

You have $50,000 which you wish to invest in something worth it. Also, on the
other hand, you have only two options to invest, either gold or bitcoin.

Which one will you choose?

Hard to decide right? How about analyzing a few factors on which is the best
investment and then deciding on the same?
Sounds good? Then, let’s begin.

Investment in Gold:

Gold is a strong safe-haven asset! How?
Suppose you decide to invest in gold, you can consider it a stable investment. The
gold prices increased consistently in recent times. The price usually rises in time of
recession which can be counted as an advantage for you to invest.
Gold has long existed in the world and people have been using it as a currency
across the world since ancient times. The utility, beauty, and scarcity of gold have
made a way for ideal baseline trading. Ultimately, during the difficult times, Gold
performs well as it is an asset that remains static while others alter. Also, as more
and more people invest in gold, the prices also increase accordingly.

Investment in Bitcoin:

Now, that you have an overview of investing in gold, let me give you a brief idea
of investing in Bitcoin. It is also considered as a safe-haven asset because of
various reasons described below.
Bitcoin is a Blockchain-based digital currency having properties that are similar to
gold. Moreover, Bitcoin is called “Digital Gold” due to its weak relationship with
other assets like stocks. Transactions using Bitcoin are much easier as they can be
transferred easily from one person to another and can also be sold in USD value.
Suppose you have a mobile wallet app, then you can use it as a payment way to the
stores that accept Bitcoins. It's been 12 years for the launch of Bitcoin and as it is
new in the market, there are chances that the price will increase gradually. The
supply of Bitcoin is also limited to 21 million tokens and the Bitcoin protocol
ensures that the final bitcoin won’t be issued until 2140.

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Similarities Between Gold & Bitcoin:

While you are comparing both the assets, it is also important to know if there are
any similarities in them. If yes, then what are they?

Scarcity:

The maximum supply of Bitcoin is limited to 21 million bitcoins, of
which 18.68 million have been already used. The supply of Gold depends on the
efforts that are put to dig gold and how much is found.

Durability:

Bitcoins and Gold are perfectly durable. Bitcoin survives on the
internet, so as long as the internet is available, Bitcoin will be alive. Bitcoin and
Gold both require miners. Gold is used for commerce, design jewelry, and other
uses. Bitcoin is useful in creating smart contracts, voting, betting, and various other
uses.

Divisibility:

1 Bitcoin can be divided into 100,000,000 Satoshis. Gold can also be
divided but not as easily as Bitcoin.

Duplicity:

You cannot cheat and create any amount of Gold or Bitcoin. Also, you
cannot have duplicates of the two assets.

Liquidity:

Both Gold and Bitcoin are easily convertible to any fiat currency.

It was for today's part. I will come with more information about gold vs Bitcoin soon.
Till then.
Stay home,stay safe.
Thanks

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