Investors are always hungry for new products, and that’s part of what has fueled the rise of Bitcoin. Since its incredible bubble in late 2017, investors have had their eyes on digital currency. Even with the crash, price volatility always means opportunity to investors who know that with great risk can come great reward.
What really has institutional investors (i.e., ETFs and mutual funds) interest in Bitcoin is its many similarities to gold. Just as there are gold ETFs that allow investors to buy into the precious metal without having to find a place to store it, a Bitcoin ETF would allow investors to speculate on the product without having to buy Bitcoin on a cryptocurrency exchange and store it in a wallet. Here at cryptolaun.ch find everything about investing crypto investment, cryptocurrencies (bitcoin, altcoin, etherum).
The comparisons between Bitcoin and gold have only been growing over the last several years, especially as a way for investors to wrap their heads around the still-nascent idea of a digital currency. Gold has been around probably since the Earth formed, but it’s been used a currency and form of wealth for thousands of years. By comparison, Bitcoin is only 10 years old. Some are convinced Bitcoin is the way of the future, but the historic value of gold has been remarkably stable given the thousands-of-years track record it has. There’s more data on the historical relative value of gold than stocks or bonds.
Still, they have a lot in common. Investors are asking themselves, is gold better than Bitcoin and which one should you buy?
There’s no clear-cut answer to that question, but it helps to look at the similarities. Both Bitcoin and gold seem to show a boom-and-bust pattern, but one that consistently leaves prices better off than they were before the bust. For example, while Bitcoin has lost a lot of value on its path down to $3,500, it’s still miles ahead of the $1,000 price it held two years ago.
That’s more or less how gold works, rising rapidly during commodities booms so that it consistently outpaces inflation, even if it spends years moving laterally or even declining slowly.
Right now, there are some important differences. Gold investors play the long game and play conservatively. They use gold to offset risks they take in other parts of their portfolio: namely stocks. Gold is a crisis hedge, which means investors flock to it when the rest of the economy looks frightening.
Today, Bitcoin is seen as a very risky place to put your money, but that’s because it’s coming out of a bubble and people aren’t sure where prices are going to go. Bitcoin is just too unpredictable for investors and economists to feel confident making predictions, unless your using an accurate trading app like Bitcoin Era that makes predictions for you.
Gold can also be an inflation hedge and many believe that’s where Bitcoin is headed. If these are the kinds of qualities you look for in an asset, buying Bitcoin might be right for you. Head to a cryptocurrency exchange like Bitbuy that lets you buy Bitcoin with Interac e-transfer or wire transfer and get started. Bitcoin is very likely to become the next gold-like asset, and right now other cryptocurrencies are vying to take similar precious metal places. Get started investing in digital currencies today.
