Should You Choose Bitcoin Or Gold?
It is a strange fact of nature that both gold and bitcoin are often sought after by the same kind of investor. These two alternative investment assets are so different and yet so alike that a newbie is always confused on what to choose.
To begin with, if you are looking to diversify your investment portfolio then you must make space for both of them because they are meant for different purposes in your portfolio. While gold and other precious commodities have been around for centuries bitcoin and its brood are infants still finding their ground. As we analyze each of these commodities it becomes more and more evident that gold and bitcoin can never replace each other; they both have their place etched out.
Features of gold
What makes gold so appealing besides it physical appearance is that it has been used as a means of transactions since ages. The unique properties of gold confer this special status on it.
- Limited availability: Anything that is limited automatically becomes more precious and a thing of immense value. Alchemists have tried and failed to make gold. This intrinsic nature of gold makes it immune to inflation.
- It can’t be faked: Gold cannot be counterfeited easily because of its unique features; at best it can be adulterated but with advanced techniques to test purity even, that is not
It is considered the safest natural hedge to turbulent economic times. Time is witness to the fact that down generations gold has never lost its sheen and it is still considered to be a safe investment.
Bitcoin is a digital currency with no physical form; it has only bytes to show its existence. It was created by Satoshi Nakomato to overcome the hardships of fiat currency. This currency does not require any middleman and is not governed by any governments and rules and regulations. Its ability to transcend borders has contributed to its rise to power.
One similarity that bitcoin shares with gold are that it cannot be counterfeited or copied. It works on blockchain technology wherein every single transaction is recorded and it cannot be duplicated. Another important part of bitcoin is that you can remain anonymous when you deal in it.
It is unfair to compare gold and bitcoin because they are not only different in age and performance but also in appearance and creation. Don’t choose between the two have them both in your portfolio. There are several automated trading robots online to get you started on cryptos. Read the review here before deciding which is safe and authentic.