The situation with the us dollar and its economy has led many to wonder: what should I invest? Does gold or Bitcoin? So here we will talk about the two options.
Indecision: do I seek refuge in Bitcoin or gold?
The debate between the gold and the Bitcoin is not all that recent, but it remains current. In fact, the Bitcoin is known by many as digital gold.
Gold, for its part, has always been known as the perfect refuge for investors. However, it seems that he found his opponent’s perfect, and that has put in doubt his potential.
However, the trade-off between the two assets becomes more relevant to recent economic events, political and social, being honest, we have worried at all. Then, what is better?
To be able to compare them, we must take into account several factors, including the market valuation and the performance of both.
If we look back, to be more precise in march, the price of Bitcoin has received a hard blow in the wake of the newly declared pandemic for that time.
Graph where we see the valuation of the gold and the Bitcoin over time. Source: Yahoo! Finance
So, while Bitcoin received a beating by the COVID-19, Gold experienced a steady growth in its price. However, since then, the price of BTC has recovered, and the gold has reached new record highs.
Currently Bitcoin is trading at US$ 11.305, according to the tool Crypto Online CriptoTendencia. Meanwhile, the gold has a current valuation of US$ 1.990 according to Yahoo! Finance.
Do you have similar characteristics?
The question is very difficult. The truth is that, although Bitcoin is referred to as the digital gold, it is a debate that endures and that is modified according to the behavior of the assets.
For example, after the Black Thursday in march, many were sentenced the death of Bitcoin once more. In fact, many were disappointed then that was not the safe haven they expected. However, it then turned again in favor of the criptomoneda.
Certainly they have many similarities, but also have a marked difference.
The gold in the past was used as a method of payment, although was discontinued by the cumbersome process. Bitcoin, for its part, can be used for rapid transfers of money and of low cost. However, it has not yet been adopted as a method of payment conventional.With respect to the shortage, both are scarce but the gold have a total offer really unknown. On the contrary, BTC has something to please and is that we know the maximum supply.A feature that will play against the gold is so easy that can be faked and reduce its purity. Whereas, Bitcoin is totally transparent.Have you ever seen someone carrying a gold ingot on the street and make transactions with it? I do not and that is, to make a transaction with gold, it can take weeks. Whereas, BTC can be transferred from where it is and when it is through a cell phone.And not to mention the divisibility, can you divide an ingot of gold in various parts from home? The answer is no. Meanwhile, Bitcoin is completely divisible.
Okay, I think that it’s clear that Bitcoin has a number of advantages over the gold. But, in my opinion, you can’t point to any of these assets and say “no, you don’t run”.
Both gold and Bitcoin have something to offer, and in your balance of pros and cons you can define which suits you best. So it would be very imprudent to assert that gold is not a good option, in The end it is a highly complex problem that requires a study of particular investment.
In this sense, gold and Bitcoin seem to be investment attractive to you if you want to maintain the value of your money over time. So the conclusion is: don’t underestimate the gold or the Bitcoin!
What do the experts think?
As mentioned before, the search for a active shelter is not unique to a person, nor a recent one. The events that have arisen in the world have generated concern and, therefore, has been generated to analyze the question: Where do I invest to save my money?
Let us remember that Paul Tudor Jones, the founder of hedge fund Tudor Investment Corporation, revealed not long ago that Bitcoin was within its investment portfolio.
That happened on the 7th of may, when Bloomberg reported that Jones took on Bitcoin with the aim of protecting your investments from the inflation that could be generated as a result of the printing of money by central banks.
A beautiful moment for Bitcoin! But, it has not been the only one. Recently an investor lover of gold, ” Dennis Gartman, assured Bloomberg that he had taken the decision to distance themselves from the gold market was too full.
“Suddenly, there are too many people involved in the gold market,” he said. And that is, certainly, the gold has too much time to be considered as a safe haven and, therefore, has been the first choice of many.
Before the comment of Gartman, Robert Kiyosaki, author of “Rich Dad, poor Dad”, he pointed to silver and Bitcoin as options if you want to get out of the gold market.
In this sense, we recommend all our readers to make a study appropriate to your investment options to make the best decisions. I never get carried away by what others say!