Today's topic is quite interesting indeed. It's like the clash of the giants although in their own fields. Yes it's Bitcoin Vs Gold.
When it comes to investing policies the most important tip would always be to diversify their own portfolios. All markets are subject to volatility, which always creates a growing demand for store-of-value options. Both Bitcoin and gold are quite attractive in this regard, as they both have their advantages and drawbacks. However, both assets should be part of any serious trader’s portfolio and this article will explain why.
Why do most people go for any investment??
It's either to make a profit over time or to make a quick profit or to solidify their riches.
Altgough Finding investment opportunities which can gain in value has become a lot harder these past few years. In fact, most traditional options only lose their value over time, making them unsuitable to hedge against market volatility.
Gold being one of the rare materials of the world is extremely valuable and thus there is less volatility in its price. Gold was the goto thing for investment before Bitcoin or any cryptocurrenncy came to existence. People's even used to buy and hoard gold under their beds, yes it's true it happens in some parts of the world. Plus gold can be converted to any fiat currency in the world. Every household be it small or big has either owned or wanted to own a jewellery made of gold, it's not always for their beauty but also because it's kind of a safe investment.
You must be thinking that where does Bitcoin stand in this predecament not to worry because most of these principles apply to bitcoin as well. Bitcoin can be easily converted to various fiat currencies, some countries even have Bitcoin ATMs where one can buy or sell Bitcoin. It's true that globally Bitcoin is not as widespread as gold but in future times it may come to pass. In every household even an illiterate man knows that gold is valuable but an you need a certain degree of knowledge to know about Bitcoin and how it works.
One thing Bitcoin has in its favor is how it can easily be transported regardless of its quantity. Since a Bitcoin balance is stored digitally, it can reside on a computer, laptop, smartphone, or even a hardware wallet the size of your average USB drive. Gold on the other hand, is often transported in its physical form or through a paper variant, which acts as an IOU.
The same applies to storing gold, as it is rather inefficient to do so when dealing with large quantities. Investors can store bullion at home – which is never a safe option – or have someone else store it on their behalf. Involving third parties means investors give up control over their bullion, which is not something everyone is comfortable with. Bitcoin is very different in this regard, as it is perhaps the only efficient form of value anyone can store themselves with relative ease. It does require some technical expertise to do so, though.
In the end, gold is not better than Bitcoin or vice versa. Both types of assets have their own appeal and issues, investors need to take into account. Bitcoin has gained value over the past few years, whereas gold hovers around the same price point most of the time. Both assets have earned their rightful place in any investment portfolio, as they both serve the same purpose through different means.
So it can be said that It is good to have both gold and Bitcoin in any investment portfolio these days.
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