Gold vs Cryptocurrency: A New World
Updated: Dec 30, 2020
It's the year 2020 and a global pandemic has taken over the world. Affecting every
aspect of the way we live. The economy has taken a drastic hit leaving people jobless
and in financial fear. This all sounds like an end of the world apocalypse movie, but
unfortunately it’s not, this is the reality we live in. In times like this people search for
security and safe havens. Gold has always been one of these investment securities but
nowadays people are debating whether they should invest in gold or cryptocurrency.
Below, we’ll compare what it means to invest in either of these.
In the long haul, gold has demonstrated to be a solid and rational investment. It has
demonstrated to increase in value over time, especially when the economy is in crisis. It
has been used as currency around the world and across many time spans. Its scarcity,
utility and beauty are reasons why it became an ideal standard for trading all around the
world. There is no risk of gold ever becoming cheap due to these factors, especially
since it is highly unlikely that enormous amounts of it will be flooding the market.
Another pro about investing in gold is that's its tangible and can be safely stored away.
In times of uncertainty people tend to gravitate towards tangible items rather then other
assets. It gives them a sense of security and control over their investments. Not to
mention gold has been able to survive circumstances that currency has not been able to
in the past for example: stock market crashes or legislative breakdowns. So in the long
run gold is a safe investment and will always have value. Gold coins, antique gold
jewelry, scrap gold, etc all have value regardless of their condition. It’s a great time to
cash out and consider investing in other channels.
Before investing in Bitcoin or any another cryptocurrency it is important to understand
the logistics and what exactly cryptocurrency is. In simple words cryptocurrency is “a
type of currency which uses digital files as money.” There are many different kinds of
cryptocurrencies available today, initially they were made to be independent of
government-issued currencies. In this article we will focus more on Bitcoin since it is the
most used and safe investment when it comes to crypto. A huge benefit when it comes
to investing in Bitcoin is that it has the highest liquidity in crypto spaces. Its very easy
and convenient to sell or purchase bitcoins since it is all done digitally. There should be
no issue buying or selling and its safe to say someone will meet your offer when you
want to sell. Having a digital wallet with crypto means you can also make purchases on
the spot, many companies and business are now taking crypto as a form of payment.
Some of the concerns people have with investing in crypto is that it’s fairly new, with it
only being around for the past 10 years. That's why people tend to invest in gold instead,
its more familiar. As well as the fear of being hacked and having money stolen. Don’t let
that discourage you though, because for the next couple of years it seems that Bitcoin/
Crypto will have large payoffs down the road. This year alone Bitcoin has gone up to
$28,755.58 as Dec.30,2020 and is expected to keep going up! Just like every other
asset or investment this is based on demand, economy, etc.
This is just a brief synopsis of both the gold and cryptocurrency worlds. Before selling,
buying or trading any of these investments make sure to do extensive research. Prices
of gold and cryptocurrency fluctuate depending on many different factors and
circumstances. There is no definite answer when it comes to gold or crypto and which
one is better to invest in. During these hard times they both have advantages and
disadvantages over one another. Its easy to save and spend crypto in a digital world
and at the same time if a recession were to hit gold will always remain valuable. While
it’s not suggested to sell all your gold for cryptocurrency, it wouldn’t hurt to add
cryptocurrency to your portfolio. When selling your gold be sure to do so with trusted
merchants. If you live in South Florida Global Jewelers, is known to be the most
trustworthy of gold buyers.
For more information on how the Covid-19 has affect the gold industry check out our
article COVID-19 Pandemic and Its Affect On The Gold Industry.
The information provided here is not investment, tax or financial advice. You should
consult with a licensed professional for advice concerning your specific situation.