Gold Vs Bitcoin: Which is the Better Option?
Market News – 20/08/18
Are you having trouble deciding between gold investment and Bitcoin investment? If so, you’re at the right place. In this article, we’ll provide you with the best advice to make a wise decision regarding your next investment. The main difference between Bitcoin and Gold is this: Bitcoin is an intangible digital form of currency, whereas Gold is a precious tangible metal. There’re still some people that prefer to invest in Gold rather than Bitcoin because they think it’s unsafe to invest in an anonymous asset that can collapse anytime without any reason.
The high volatility nature of Bitcoin is what keeps it from entering the mainstream financial structure. However, more and more financial bodies are accepting Bitcoin as a form of payment. Before proceeding any further, let’s have a look at what is Bitcoin.
What is Bitcoin?
Bitcoin is the decentralised digital currency that is independent of any financial central body. It was first proposed by a pseudonymous software developer Satoshi Nakamoto in 2008. There’re a number of ways you can earn through Bitcoin. To start trading Bitcoins, you first need to find and set up a crypto wallet. It’s maintained by a number of volunteer coders and run by a network of dedicated, powerful computers spread all over the world. Unlike fiat currencies (euros, dollars, yen, etc), cryptocurrencies have limited supply, and no central bank regulates them.
Is Bitcoin a better investment than gold?
According to many financial experts, cryptocurrencies are unsafe thanks to their high volatility nature. So, you should think twice prior to investing in any cryptocurrency, be it Bitcoin, Ethereum or Ripple. One of the biggest downsides of investing in cryptocurrencies is that they have no inherent value, and they aren’t backed by anything the way fiat currencies are backed. However, many prefer Bitcoin over gold because it can provide you with huge profits in no time. The profit earned through gold investment is quite low compared to the profits received by Bitcoin investment.
If you are not ready to take any risks, it’s highly recommended that you avoid investing in cryptocurrencies or Bitcoin. Gold is really a safe investment if you want to take advantage of price fluctuations without having to put your wealth at risk.
The current situation of Bitcoin is quite uncertain and no one seems to be willing to invest in it. Bitcoins don’t carry any personal information such as physical addresses or names, and therefore they can be used for a number of nefarious activities such as money laundering and tax evasion. Your government or state could ban bitcoin and other cryptocurrencies anytime without notifying anyone to counter illegal activities and there will be no one to reimburse you. When you’re working online, you can’t say for sure that your assets will be safe all the time. Hackers are always on the lookout for the opportunities to steal your digital wealth. So, you must conduct your due diligence before investing in any kind of cryptocurrencies.