Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

BTC vs gold – Which asset is a better investment?

2 min read

During the Covid-19 pandemic, many people lost their income, which led them to start thinking about saving and investing. The pandemic situation has resulted in safer assets such as gold. However, people began to register cryptocurrencies, which are the biggest competitor to gold and have recently been able to generate much higher profits. In this article, we will take a closer look at the duel BTC vs gold.

What are the benefits of gold?

Yellow metal is basically used mainly for the production of consumer goods, such as jewelry. It also occurs in limited quantities. Regardless of demand, supply is therefore extremely low. Gold cannot be produced, only mined, which is certainly a difficult process. Subsequently, this asset has yet to be processed.

What does it say in favor of cryptocurrencies?

The largest and historically first cryptocurrency is BTC. It is based on blockchain. There have been quite a few reports and statements in recent times that refer to BTC as “Digital gold”. This is because the two assets have some features in common. As with gold, we have a limited amount of BTC available. However, the offer is huge. Especially in times of bullrun. Leading analysts are still sticking to predictions that BTC will climb to $ 400,000.

BTC vs Gold

  • In terms of security, transparency and legality, gold is the clear winner.
  • In the case of value, these assets are approximately at the same level.
  • Liquidity is very good for both.
  • Volatility is what puts BTC at the forefront. Gold has long had very low volatility.
  • Compared to BTC, gold is more accessible to all sections of the population, regardless of economic and technological knowledge.
  • Perhaps the most important difference is that gold is the recognized currency of central banks. In the case of BTC and cryptocurrencies this is not possible yet, but it is only a matter of time.

The final verdict

The world is constantly aware that cryptocurrencies will set the trend in the coming years and that they should not be taken lightly. BTC has more than 100-fold appreciation compared to gold in terms of value retention. It is possible that the market capitalization of BTC by 2030 will exceed the market capitalization of gold. Both gold and cryptocurrencies have their advantages and disadvantages. It all depends on the investor’s discretion where he wants to invest. Ultimately, everyone has to decide for themselves.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

Leave a Reply

Your email address will not be published. Required fields are marked *