Bitcoin and Gold: Similarities and Differences
At a time when the market is uncertain, it is time to make the right investments. Have you identified the right investments for your financial goal yet? Start acting fast! Crypto and Gold, are two of the hot topics today. Both are completely diverse, right? Not really! Both gold and crypto are the best investment decisions in today’s scenario. Before you join any OTC trading platform or Gold trading site, know the things that are common and different for these two popular assets. Accordingly, invest in the right asset.
Both are safe-havens
Gold is a safe haven for several centuries, crypto is the new inclusion in that list. During the economic crisis, both crypto and gold will safeguard your wealth. Gold is an age-old safe haven. On the other hand, Bitcoin is a present and durable investment. Off late Bitcoin has become a good option for investment, many flocks to it at the time of financial crisis. What better than the present pandemic led to economic turmoil?
Both come with limited supply
A limited supply of gold and crypto makes it a hot property. Also, it is the reason behind the consistent price increase. The last Bitcoin will be mined somewhere around 2140. This makes digital assets similar to precious metals. Gold may not run out like Bitcoin, but the latest reports suggest that gold production will decline post-2050. Reason is all easily available gold is in circulation. Now we need to dig deeper for more nuggets. Hence, gold is also a limited asset similar to digital currency.
Both gold and digital asset are speculative investments. As profit depends on the price fluctuation of the market, one can make high gains in a short time. Presently the Bitcoin market is almost stable, both are almost the same. Investors buy gold and hold it until there is significant gain, the same with cryptocurrency. Hence many consider cryptocurrency the ‘modern-day gold’.
Bitcoin is a network
In the last decade, Bitcoin has emerged as the next big thing in the financial world. It has grown into a trustworthy and reputed payment mode. Using the OTC trading platform one can make investments and trade. More businesses and institutions are accepting Bitcoin as payment. Definitely a good sign for the crypto community. However, Gold is unacceptable as a form of payment. At times as bartering services, but no one uses it to purchases day to day essentials or services. On the other hand, Bitcoin is.
Bitcoin is a modern and innovative
Gold can now be tracked through a global tracking process. This makes it tough to forge or steal. Similarly, Bitcoin is a global payment system that can be traced. In this digital age, Bitcoin can be stored in a digital wallet. Though it has no physical existence like Gold. Through OTC trading platform like Ausfinex, assets are traded. For tech-savvy world digital currency is the modern-day gold with more possibilities.
Both have different storages
Gold is a precious metal that has physical existence; it needs to be stored in safety deposit boxes and secure vaults. Today most financial institutes and banks store gold for people, in exchange for fees. On the other hand, Bitcoin has no physical existence. It is a virtual currency that is stored in Blockchain. Users can access Bitcoin through individual digital wallets using private keys. These keys are unique and held by the owner.
For today’s tech-savvy world, Bitcoin is a more convenient and easier option. With proper safety norms and genuine wallets, Bitcoin can serve a purpose for a long time. Unless Bitcoin owner shares private keys or ignores the basic safety norms, cryptocurrency is tough to steal. Blockchain the underlying technology of Bitcoin is hack proof and transparent, making it the best option for the 21st century.