Holding gold is one approach to glamorize your investment portfolio. However, cryptocurrency is an alternative asset class that has exploded in popularity in recent years.
As institutional and retail investors alike invest in crypto, you may be wondering whether this new digital asset should belong to your portfolio or if you should stay with something more traditional like gold.
Here’s everything you need to know to invest in crypto. In this blog, we will compare gold and Bitcoin as safe-haven assets.
Bitcoin's market capitalization has surpassed $1 trillion, while gold has reached $1800.
As the most widely used cryptocurrency, Bitcoin has many of the features of a fiat currency, but it also has certain unique characteristics that could make it a viable shelter.
However, whether Bitcoin is a viable safe haven in times of market volatility is ultimately up to the individual investor.
With Bitcoin's meteoric growth, more investors are looking for safe ways to invest in crypto.
As mentioned earlier, by market capitalization, Bitcoin is the most valuable cryptocurrency on the planet.
The blockchain technology that underpins Bitcoin is another well-known characteristic. This ground-breaking technology is transforming the way we interact with one another.
Blockchain functions as a monetary exchange intermediary between individuals, bypassing banks and other financial institutions and enabling a decentralized market.
You can join crypto exchanges to invest in Bitcoin if you're interested in this new asset class, its decentralization, and transformational technology.
Since Bitcoin is decentralized and has a finite supply, it allows individuals to transact with anyone from anywhere in the globe. This is the primary reason investors prefer to invest in crypto.
As a store of value, Bitcoin is a 100x improvement over gold. The rest of the globe is catching up and is starting to reprice digital currency in real-time.
Despite the fact that Bitcoin has gained by hundreds of percent in recent months, it is expected to continue to appreciate in US dollar terms over the next few years.
By 2030, Bitcoin's market capitalization will have surpassed that of gold. As a result, many eminent investors don't own any gold and have a significant portion of their net worth invested in crypto.
OTC platforms make it simple to trade Bitcoin and other digital currencies. Progressive global businesses are now accepting Bitcoin as payment, and proponents are actively promoting it.
Some of the primary differentiators are liquidity, ease of exchange, and widespread use in the modern economy.
Gold serves a primarily defensive goal of preserving value, but Bitcoin and other digital currencies are designed to serve a variety of purposes, including ease of exchange, acquisition, and liquidity. So, it is profitable to invest in crypto.
A piece of gold can be faked; thus, it must be examined for purity. On the other hand, no one needs to verify Bitcoin for purity.
Bitcoin can't be copied or counterfeited. Bitcoin is easily identifiable and impossible to forget. Gold is easily identifiable, albeit it must be examined for purity in some cases. Thus, it is safe to invest in crypto.
Several analysts predict that Bitcoin's price will continue to rise in the long run. So, Bitcoin can be seen as a long-term investment choice.
Even when we buy gold, we keep it for a long time. Many families would only sell gold as a last resort and only in times of difficulty. Bitcoin can also be used to make money if it is invested in like gold and for a long time.
Thus, Bitcoin has surpassed gold as the numero uno asset, dethroning it from its throne. With an annualized return of 230 percent, it is the best-performing asset class of the decade.
Bitcoin has established itself as a competitor to gold and is thus dubbed the "Digital Gold" by Bitcoin maximalists and crypto fans throughout the world.
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