Many economics analysts and other people have forecasted a recession in the past few years. After a lot of years of a bull market, most investors also worried about the possibility. It’s because that may suddenly start looking for an approach to shift the way of their investments.
You can know about KeepABit which is a cryptocurrency trading platform, as it has quickly become the top platform, so you can safely invest on it.
Indeed, they’re in search of some more stable and safe-havens. Hedging toward stock fluctuations with gold will be the conventional pass. It has a successful tool in the past, but a newer solution threatens the old-school safe-haven. Bitcoin, launched in 2009, ushered in a new age of digital currency.
Bitcoin has much of the currency’s properties as the leading blockchain, along with certain special characteristics that might render it a viable refuge. Below, we’ll equate gold and bitcoin as options for safe-havens. So, before you look for Keep A Bit, let’s know about these two ways of investments.
Comparison of Gold and Bitcoin
Gold is dominating the safest investment for thousands of years. But, bitcoin launched not more than a decade. It got familiar widely in the last few years. We have compared these two things with different topics head-to-head below:
Transparency, Safety, Legality
Most investors think that gold is a proven trading system, along with tracking and weighing, is pristine. But it’s not very easy to steal. Also, it’s tough to trade fake gold. Similarly, it’s almost impossible to corrupt the metal.
Besides, because of Bitcoin’s encryption, complex algorithms, and distribution system, it’s also hard to corrupt. However, its infrastructure to make sure the safety is still not in place. In this case, the disaster of Mt. Gox would be the best example.
This is why bitcoin trading might be a bit of worrying. One of the popular exchanges went offline in this troublesome event. As a result, about $460 million bitcoins went missing from its users.
Rarity
The rare commodities are both gold and bitcoin. The halving of the Bitcoin mining incentive means that by the year 2140, all 21 million Bitcoins will be out of circulation.
Although we know there are just 21 million bitcoins in existence, it is unclear when all the gold in the world will be extracted from the planet. There is even hope that it is possible to harvest gold from asteroids, and several firms are also planning to do this in the future.
Baseline Value
There are uses of gold in many applications. These may include luxury to specialized items. Indeed, gold has used different sectors like jewelry, dentistry, electronics, and many more. Besides, apart from focusing on blockchain technology, bitcoin comes with a great baseline value.
Volatility
Its volatility is a big concern for investors looking at bitcoin as a stable haven commodity. It is only important to look at bitcoin’s price background for proof over the last two years.
At its peak point, Bitcoin hit a price of around $20,000 per coin around the beginning of 2018. The price of one bitcoin hovered about $4,000 almost a year back. A part of those damages has since regained, but it is not near the one-time high price point.
So, the choice is yours which one you’ll go with – gold or bitcoin.
Leave a Reply