Bitcoin is drawing comparisons to gold as a stable investment vehicle. But which is better, and where should you put your money?
Although they’re similar, investment-wise you should know the difference between gold and Bitcoin, and when to invest in either.
Bitcoin is easily the most popular cryptocurrency in the market. Its value has risen tremendously over the last few years, fueled by spectators and those who want to get in on the bandwagon.
Bitcoin is also gaining ground as a respectable investment medium. Investors can get an immediate edge when they know when to buy and when to sell the digital currency.
Bitcoin Pros and Cons
Bitcoin is a highly liquid asset, which means you won’t have any problems converting it to cash when you need to. It’s popular, and people are always looking to buy it no matter the current value. What’s more, there are a number of cryptocurrency exchange websites where you can buy or sell Bitcoin no matter the time of day.
There’s something very appealing about Bitcoin’s decentralized nature. It can be used as a currency to purchase goods and services, and thousands of merchants both online and offline have begun accepting Bitcoin as payment.
The potential value of Bitcoin is unlimited, which means it has a high ceiling. Time and again Bitcoin prices have soared and exceeded market expectations. Investing in Bitcoin is a wise move especially if you have the capital. Download the official app and you can trade Bitcoin like a pro.
However, Bitcoin is more volatile compared to gold, and you can easily lose money if you’re not careful. Since it’s a digital asset Bitcoin is prone to hacks and security breaches, and you can lose your investment this way.
Gold Pros and Cons
Buying gold can now be done online, but you must exercise caution and purchase only from reputable and established sources.
Gold has held its value throughout history and is considered one of the most stable forms of investment. It’s not dependent on the economy, which means it will retain its value even during the face of a global recession.
Gold is a physical material and can be stored in vaults and banks. You can get insurance for it to cover instances such as theft and others.
Unfortunately gold has a notoriously low liquidity, and investors will often have to seek out ways on how they can convert their gold into money or other assets. It’s virtually impossible to exchange gold directly for purchases. Most likely, you will have to turn it into fiat currency before being able to buy a product.
Bitcoin or Gold for Investment?
In a nutshell, gold is a more stable investment and may be stored long term without worrying about its value. Bitcoin, on the other hand has more potential for profit due to its volatility, but it’s a much riskier investment vehicle compared to gold.
Any wise investor will know that spreading your capital on several assets is a good move. That said, consider investing in both gold and Bitcoin so you can reap the benefits of both.