The most well-known cryptocurrency, bitcoin was launched in 2009. It earned a reason to compete with gold because it holds a store-of-value, an investment feature just like gold. Bitcoin further carries a hedge of protection against volatility and currency devaluation. However, there is always one pertinent question as to which is better bitcoin vs gold, and this rivalry is commonly seen in the market.
A few years back, many commodity market researchers and other analysts in the realm of finance foretold a market slump or recession. After several years of the market being in a bull position, investors worried that this instance might abruptly begin, and hence they sought a way to move their investments or ventures into a more steady and safer position.
The conventional and the most popular transit would be to safeguard investments against this stock volatility. This could be done by investing in gold. In the former era, this was the prevalent and most effective way for a safer investment. However, the launch of bitcoin emerged as a haven, and it further led to a novel age of digital currencies.
Being the most prominent cryptocurrency, bitcoin holds many characteristics of a currency. However, some distinctive traits also present it as a viable investment option. Although it is entirely the call of investors to decide which amongst bitcoin and gold is a more feasible option, many investors carry out their evaluations based on bitcoin vs gold market cap.
Unocoin is the country’s largest bitcoin trading platform. This platform enables investors to trade and buy bitcoin most comprehensively. Unocoin is constantly working towards creating a better ecosystem for traders to easily trade in cryptocurrencies from any place across the globe.
Difference between bitcoin vs gold
While numerous factors make gold the most viable and safest investment option, the main cause for its value is, regardless of the demand for gold, the supply of this commodity remains extremely low. Unlike shares and physical currencies, gold cannot be issued because this is an asset that is grounded and processed after mining.
While on the other hand, bitcoin is regarded as a cryptocurrency based on a blockchain. It is further known as digital gold due to its unique features. Like gold, bitcoin is also not issued by any agency like the Federal government or Central bank. Rather, bitcoin is extracted by miners using the latest computing technology.
Even after some of the similarities, bitcoin vs gold market cap differ based on certain factors mentioned below.
- Difference between bitcoin vs gold price based on transparency and legality
While differentiating gold and bitcoin based on transparency and legality, one can say that investing in gold is usually better when it comes to transparency and legality. Gold is better in terms of transparency because gold’s set method of selling, measuring, and tracking is natural.
It is extremely difficult to misappropriate gold, to transfer false gold, or to contaminate this metal otherwise. Apart from this, the legal procedure of investing in gold is much easier when compared to bitcoin, as even after being the most traded cryptocurrency, bitcoin remains hard to track if there arise any fraudulent activities.
2. Difference between bitcoin vs gold based on the baseline value
Since it is regarded that both bitcoin and gold are precious resources, the parting or mining of bitcoin recompense warrants that each of the 21 million bitcoin will come out in the market by the end of the year 2140. At the same time, it can also be comprehended that there can be just 21 million bitcoin that would ever exist, and can ever be mined.
However, it is unknown when will all of the earth’s gold be dug. In addition to this, there is further a consideration that gold can also be dug from asteroids. There are indeed certain corporations looking to mine gold from asteroids in the future.
Apart from this, gold has historically been utilised for numerous purposes, from extravagant objects like ornaments to functional employment in electronics, dentistry, and many more and holds a great baseline value. In accession to leading in a novel locus on blockchain technology, bitcoin itself hold a colossal baseline value.
Millions of individuals worldwide are deficient in banking base and infrastructure along with conventional ways of finance and banking, like loans and credits. With the assistance of bitcoin, these people can transfer value over the world for close to zero fees or charges. Bitcoin’s real potential as an investment method for those without access to conventional banks has conceivably yet to be thoroughly developed.
3. Difference between bitcoin vs gold based on liquidity
It might not be wrong to state that both bitcoin and gold comprises an extremely liquid market. By liquidity, it implies that both bitcoin and gold can be easily and readily converted in the cash form, or it can further be asserted that it holds a higher exchange rate.
4. Difference between bitcoin vs gold based on volatility
One of the greatest concerns and anxiety for investors looking up to bitcoin as a secure and safe asset is its volatility. Individuals need to watch only the rate archives of bitcoin in the preceding two years as proof. At its most crucial point, near the commencement of the year 2018, bitcoin touched a value of approximately $20,000 per coin.
Only around a year later, the price of a single unit of bitcoin wavered approximately near $4,000. Since it gained a share of those losses, it is still nowhere adjacent to its one-time steep value point. On the other hand, it can be said that the prices of gold can become volatile in the short term. However, when looking upon the benefits in the long term, it can be explicitly asserted that gold is less volatile than bitcoin.
5. Difference between bitcoin vs gold based on safety
When differentiating bitcoin vs gold price or value based on safety, people must note that gold can safely be stored in vaults and further guarded by custodians obligated to safeguard the investors’ account. In addition to this, gold vault accounts are usually guaranteed up to a specific amount, much similar to a conventional financial institutional account. Hence, the investors can always be assured that all their gold investments are safe and secured. On the other hand, since bitcoin is a digital cryptocurrency, investors would still require a place to hold this bitcoin safely.
Bitcoin can be stored in a digital wallet, cloud platform, or physical hard drives. However, these storage modes are not considered safe when juxtaposed to gold as there is always a constant threat of hacking on these cloud-based platforms.
- Is bitcoin a good investment in 2021?
After looking at the past and present performance of bitcoin, it can be asserted that bitcoin is the highest performing asset in the present times. While there were certain highs and lows seen in the bitcoin market in the past few months, it might not be wrong to say that the prices of bitcoin are bound to increase tremendously over time, and the small amount invested today is sure to yield higher returns in future.
2. Can bitcoin overtake gold?
The value of bitcoin is increasing by the day. After looking at the bitcoin market performance, it is evident that the value of bitcoin has overtaken the former value of bitcoin, and now the value of bitcoin stands at $39,734.20 while the value of one ounce of gold is still 1651.47 USD (at the time of writing this a
Unocoin is India’s first and the most secure bitcoin trading app. This exchange app was founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go. The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically. What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalisation (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.
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- Playstore link: https://play.google.com/store/apps/details?id=com.unocoin.unocoinwallet
Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).