Here Is Why Investors Are Moving Away from Gold and Into Crypto
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An increasing number of investors globally seem to be finding Bitcoin investments more lucrative than Gold these days. The COVID-19 pandemic has shifted the price of Gold in a relatively downward direction, while simultaneously pushing cryptocurrencies into an upward trend, especially Bitcoin. Most importantly, investors are now starting to build their trust in Bitcoin and other crypto-assets to meet their expectations.
This means, with a smart, well-calibrated investment strategy, you could be in for some very high returns from your investment in digital assets these days.
Reasons for The Shift of Interest of Investors from Gold to Crypto
The following is a rundown of three of the crucial factors that are generally considered to the main driving force behind the shift of interest from tangible assets to intangible assets.
Investors Are Moving to Digital Assets
Investors are now more interested in investing their money in digital assets compared to Gold. With that, the idea that cryptocurrencies will lead most other conventional asset classes in the upcoming decade is gaining more traction. Yes, the chances of price fluctuations are there, but along with it, the growth rate is also very high. Many industry experts are convinced that eventually, it will become one of the leading asset classes and replace tangible assets like Gold.
The best part of cryptocurrencies is that it will allow you to get higher returns on your investments quickly. Over the past six years, the price of gold has only marginally increased as compared to, say, Bitcoin which has grown from approximately $300-$400 in Dec 2014 to more than $28,000 per BTC in 2020. Therefore, if you maintain the old thought process that Gold will deliver you better returns, then it could be considered a miscalculation on your part based on current data.
Trading Volume of Bitcoin
The trading volume of Bitcoin is increasing on a year-on-year basis. Let’s get down to some statistics to understand the trend in a better manner. In 2015 $12 billion was the notional trading volume of Bitcoin. In the year 2016, the trading volume of Bitcoin was $31 billion, and in the year 2017, the trading volume was $870 billion, and in 2018 the trading volume of Bitcoin was $2204 billion.
From these statistics, it is evident that the trend is upward rising, and you will get better returns in the upcoming years. On the other hand, Gold’s trading volume is declining sharply over the past few years. This is why investors are shifting their attention to Bitcoin and feeling less interested in Gold.
On Gold’s Notional Value the Price of Bitcoin Is Dependent
We are now advancing towards a 100 percent digital format of investments. Many expert investors believe that Gold will lose its importance over some time. The reason is if you compare Gold with Bitcoin, then Bitcoin is superior to Gold currently. Currently, the cost of one Bitcoin is approximately about 27,000 US dollars approximately.
You can buy anything using Bitcoin as it can be used as a medium of exchange, but you cannot purchase anything by exchanging a gold bar. You’re daily necessary items you cannot purchase using the gold bars, but you can buy your essential items using Bitcoins.
It will help you to fulfill your daily requirements. In simple words, you can say that Bitcoin has a better exchange value compared to that of Gold. Therefore, you can use Bitcoin more quickly compared to Gold.
Conclusion
Now, the reason for the shift of the interest of the investors from Gold to Bitcoin has become clear. One interesting fact is the upcoming year, the value of Bitcoin will rise high, and the scope for earning more will increase from your end. If required, you can refer to the information on this website Bitcoin System to get a better insight into it. Therefore, you need to make your choices after doing proper research on the current market scenario. A rash decision can ruin your gains from your investments.
- Disclaimer: All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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