Bitcoin vs gold: What's better to invest in?
Since ancient times, gold is considered as the most important measure of the value of tangible assets. Besides it was used as a medium of exchange and capital accumulation. There is no wonder that today, many people still believe that investing in gold is much safer than buying banknotes of foreign countries, even those that are more economically developed.
This statement is quite true. The governors of the powerful countries are frequently talking about hard times for the economy, and most of the rest of the world is on the verge of economic collapse. When it was claimed that even the US dollar, which is established as a reserve currency in all the countries, has an uncertain future due to the increasing debt of the United States, often people start to consider the money as an unreliable tool for investment falling back to the everlasting gold in result.
However, due to the Internet technologies today we have the new subject for investment whose value is compared with gold. It is a Bitcoin digital currency.
А lot of people have already assessed the advantages of cryptocurrency, referring to bitcoin as digital gold. Indeed, Bitcoin and gold have much in common:
- Scarcity. It is necessary to make some effort in order to get the gold or bitcoin. So the gold is mined in the minery, and Bitcoin - with the help of complex computer calculations.
- Universality. Both valuable assets have its value, which is common in all the countries. There is no need to change Bitcoins for the local currency in each country as well as gold, that has well-known value.
- Value increase in time of crisis and inflation. During critical situations in the economy, when there is a great risk of losing your money savings, people are massively buying gold and bitcoins up, and this reflects in its price. The example of this situation is the events in Greece and Cyprus.
- Operation outside the banking system. The government has no direct influence on Bitcoin, i.e. it can not "print" more bitcoins in case of its shortage or withdraw it from the accounts of the people. The same goes for gold.
Nevertheless Bitcoin is advanced form of gold, as evidenced by a number of advantages:
- Excluding the possibility of forgery. Gold still can be somehow faked. Or its quantity can be reduced in the finished product, which greatly cut its final cost. Periodically there are news about the forgery of bank ingots. Bitcoins can not be involved in anything like this.
- No need to carry it. When you move to another country you do not have to think about how to carry bitcoins safely. It is enough to transfer them to your online BTC-wallet in order to have access to it anywhere. At the same time carring the gold is a real problem especially if you have a lot. You will face restrictions on the allowable amount of gold you can carry. In addition, there is a fairly high risk of theft. Or you can make the insurance for gold, which entails additional charges.
- Use as a means of payment. Although today there is no a lot of services that can be paid with bitcoins, every year its number increases. But it is unlikely you can pay for goods with gold somewhere.
- No risk of confiscation. It would seem that it is impossible to confiscate the privately owned gold of the entire population of the country. Nevertheless, in 1933 the US government forced its citizens to surrender the gold that was stored in their homes. In case of evasion people had to pay a fine or they would be imprisoned. Сertainly, people received the reimbursement in the amount of gold they surrendered. But immediately after that the devaluation of US dollar followed, which was hardly a coincidence, and entire population of the USA suffered losses. However this scenario is impossible with bitcoins.
- Convenience and safety. Wherever you are, you always have access to your savings via the Internet or mobile phone. Unfortunately the same can't be said for gold. In any case of emergency this advantage is particularly noticeable.
Thus, we can say for sure that Bitcoin is a functionally advanced form of gold. Investing in Bitcoin you have the guarantee that your savings will not be lost because of the devaluation, you can be assured that the government is not able to get access to your personal account.
You can make your first Bitcoin investment on our website. Our support-team is always ready to answer any questions you've got and to advice you the best way of placing your order.