- Gold witnessed its highest point this year on 8th January at $1884.
- Bitcoin, a digital currency has also had a good year with its highest point being over $64,000 before facing the current issues.
- Since cryptocurrencies have been adopted, the debate of gold vs Bitcoin has been held.
Since cryptocurrency has been adopted, the search for the store value of Bitcoin and gold has been going on. Financial experts exist on both sides of the debate, some experts are debating based on their emotions with regards to where they prefer to invest their money. The debate it seems has reached a stalemate.
Among these debates, a recent argument became popular that was between MicroStrategy’s CEO, Michael Saylor who is the first-ever CEO to invest his firm’s cash reserve in Bitcoin, and an investor who supports gold, Frank Giustra. Time has seen many debates that have been shared for both forms of investment based on market changes.
What Should You Invest In: Bitcoin or Gold?
Both assets have seen many arguments in their favor. While supporting gold, experts have argued that it is a safe asset that has been around for centuries and has also always been valuable. Bitcoin is a new form and has only existed for around a decade. Bitcoin has a hype to it but it still has a lot to prove.
When supporting Bitcoin, experts cite that it is very safe because it exists on Blockchain and cannot actually be stolen like gold or currency can be. It is very easy to divide Bitcoin, it can be shared amongst billions of people while keeping its value intact, while a gold bar cannot do that.
Bitcoin has recently doubled its worth with its market capitalization becoming more than $1 trillion. Cryportucrrencies, especially Bitcoin are being considered an opportunity to earn money faster. People who support gold believe that Bitcoin is a volatile currency and even though it has grown during the pandemic, it is not a great store of value. Gold, on the other hand, maybe slow but it is still the go-to investment for people looking for long term investment.
Also, Gold has the support of many governments while cryptocurrencies often face a ban or a threat from governments. For example, China is already working to close exchanges. However, Bitcoin supporters believe that because Bitcoin is decentralized, even government officials will be holding this asset and hence a complete ban will be difficult to execute.
Bitcoin and Gold both have their cons and pros even though each of their supporters only talks about how perfect they are. Bitcoin recently fell down a lot, reaching as low as $33000 this past weekend. Many profits were lost in one week. Bitcoin used to trade at $64,863 and now it is trading at $39,000.
What is The Future for Both Assets?
There is a future for both these assets in the market, however, the latest events have led to gold being considered more favorable. Gold has been a stable store over the past years, but Bitcoin’s volatile nature hasGold vs Bitcoin led to many issues for investors.