Gold has been used as a currency and regarded as the world’s most precious asset for millennia. As a gift or commodity asset, it has been used for many different purposes in the past. Over the last few decades, the yellow metal’s price has steadily grown. It has been a remarkable surge for Bitcoin, which has broken records and climbed to all-time highs. A growing number of investors and crypto aficionados are evaluating the relative merits of the two.
Gold has long been seen as a refuge asset. Historically, gold has been used as a kind of insurance against stock market volatility in times of financial crisis or recession. As a result of the similarities between gold and bitcoin, the term “digital gold” has been coined.
Due to the fact that neither Bitcoin nor gold can be diluted or debased, they both offer substantial benefits over fiat currencies.
Despite the fact that it is not now a safe-haven asset, Bitcoin’s uncorrelated position means that it has the potential to become one in the near future crowd millionaire. Eight out of ten investors questioned by Fidelity Digital Assets thought that digital assets (cryptocurrency, tokens, Bitcoin ETF, etc.) had a place in their portfolio, according to the report.
Every year, the number of people who are exposed to digital assets grows in the United States and Europe. Almost nine out of ten people who took the survey stated they were interested in digital assets. According to previous surveys, this number has increased. Investors are more optimistic about digital assets today than they were two years ago.
The value of gold is unquestionable.
Gold has been around for a very long time indeed. Modern-day Karnataka’s Maski area has the ancient world’s deepest gold mines. Mined gold was used by majestic families. Throughout the history of the jewelry business, gold has consistently maintained its value and been seen as a solid and secure investment. Due to the fact that gold is both real and rare, it has long been seen as a buffer against risk and has held great esteem among investors. When compared to Bitcoin, which has been in existence for less than 15 years, the Great Depression has not occurred (even though it was created specifically to avoid such a crisis).
Bitcoin and several other cryptocurrency coins are rising high.
People in the millennial age prefer to conduct their transactions online rather than with cash. Online and mobile transactions are more convenient for them. Cryptocurrency, on the other hand, is intangible. In any case, the next generation doesn’t understand the tangibility argument.
Due to its rapid growth, Bitcoin is now more accessible than ever before to millennials looking to invest in a digital asset. Because Bitcoin is deflationary even at the code level, it cannot enter hyperinflation. Furthermore, the government has no authority over the transactions. Investors in digital assets in Asia include financial advisers and wealthy individuals (HNIs), as well as institutional investors such as hedge funds and venture capital firms (HF/VCs).
There are several ways to use Bitcoin. As long as you have a computer and an internet connection, you can get to it from wherever. It is impossible to carry gold or sell it in tiny parts at times of distress. Additionally, Bitcoin is a limited currency, which means there can never be more than 21 million Bitcoin in circulation at any one time.
The payout for mining bitcoin transactions has been halved due to BTC halvings. Bitcoin’s inflation rate and the pace at which new bitcoins enter circulation are both halved as a result of this. In other words, the digital asset’s deflationary characteristic has the potential to rise in value.
Is bitcoin the new gold, or is it just a fad?
Investment returns on Bitcoin can’t be ignored by investors, even if gold holds a particular place in Indians’ hearts. A new age will arrive, despite the volatility and danger of bitcoin investments. During the previous 10 years, gold has underperformed, while cryptocurrency has gained an annual return of close to 230 percent. There are a number of things to keep in mind when it comes to investing in bitcoin, including the fact that it is very volatile.
Author Profile
![Scott Baber](https://i0.wp.com/markmeets.com/wp-content/uploads/2021/10/S.jpg?resize=150%2C150&ssl=1)
-
Senior Managing editor
Manages incoming enquiries and advertising. Based in London and very sporty. Worked news and sports desks in local paper after graduating.
Email Scott@MarkMeets.com
Latest entries
EntertainmentMonday, 2 September 2024, 19:52The Evolution of Captain Marvel: From Supporting Character to Iconic Superhero
BusinessFriday, 23 August 2024, 15:00How to Activate Windows and Microsoft Office for Free
LegalSunday, 18 August 2024, 7:50A Guide to Effective Marketing for Legal Professionals
Social MediaFriday, 19 July 2024, 12:00How Social Media Can Build Trust and Engagement In Your Community