Gold has been around for centuries and bitcoin is a digital currency. Which one to trust more and which one is really worth the investment?
These are the questions on every individuals’ mind right now so, don’t worry you’re not the only one.
Let’s discover the pros and cons of these currencies and get accurate answers to these two questions.
Pros of Gold
There’s no denying the fact that gold was once used as a currency and [people used gold to pay or get paid for buying or selling anything. In recent years, gold’s value has increased significantly and is considered a highly stable investment even during the global recession.
As said earlier, gold has been used as a currency for centuries and for a longer period. It is ideal for trading purposes and has a great value to it. Its usage for centuries has proved its worth and inherent value. When a person chooses to buy gold online, there is no insecurity of losing money, thanks to its consistent high value and stability over the years.
If you wish to invest in gold, it will be kept safe in a vault made of metals IRA and will be monitored by a custodian who will oversee all of your incomings and outgoings. These accounts work similarly to bank accounts where you have a limit. You can rest assured that your account and savings are safe and secure.
Drawbacks of Gold
There aren’t really any drawbacks of investing in gold that will have you changing your mind. The only drawback is that it’s a physical item that you own and have invested in. It should be kept in a highly safe place. If you choose to keep it in your home, we suggest you have a vault made of IRA metals.
Advantages of Bitcoin
Before we jump to its advantages or disadvantages, let’s talk a little bit about bitcoin.
Bitcoin is a digital currency that was established in January 2009.
The identity of a person who made this is not disclosed yet but unlike the government-issued currency, it is completely handled by a decentralized authority.
There’s no physical coin or an item representing bitcoin; rather, it’s a transparent public ledger that everyone can see.
Let’s have a look at its advantages and drawbacks.
Bitcoin being a digital currency makes it a lot easier to transfer it to another person. Everything related to bitcoin is digital, be it transferring or accepting. You can meet a person you have to transfer bitcoin currency to and can efficiently do it just by scanning a QR code. You can also choose to involve a third party in the business where you will be digitally connected to your buyer.
The only thing you need when buying or selling using bitcoin is a mobile wallet app that allows you to pay in the respective currency. Unfortunately, not many stores accept bitcoins but you can use that app and bitcoin as a digital currency to buy things from any store that accepts it. Some large retail stores do accept bitcoin as one of the payment methods.
Bitcoin has only been in the relative industry for a few years. It is new and has the potential of significantly increasing in value. It is an emerging investment and investing in a digital currency at the moment, will most probably lead you to huge profits. There are a lot of individuals who have already earned millions by investing in bitcoin.
Disadvantages of investing in Bitcoin
A lot of people don’t trust bitcoin as it is completely digital. However profitable, no one is certain about the positive outcome from investing in bitcoin. It’s extremely risky but let’s first have a look at its drawbacks.
As said earlier, it’s newly surfacing and gaining popularity, it is very unstable. Its value is prone to fluctuate by really large margins in a short period of time. There can be a great return from this investment but as an investor, you should be ready for potential sudden crashes.
Vulnerable to Scams
The place you store your bitcoin is not always that secure. Although it is digital, it’s all the more at a huge risk of being stolen or hacked. If you are opting for a mobile wallet, it could be hacked and if you go for an external hard drive or flash drive then it can be stolen.
Whatever the currency, there is always a risk of losing it, either physically or digitally.
Depends on Supply & Demand
The value of a bitcoin is based on supply and demand. If another crypto currency’s demand is increased to that of bitcoin, then the value of bitcoin will automatically go down. No doubt that Bitcoin can be a great investment, but it’s still subject to the existence of other cryptocurrencies and there is always that bit of a risk.
To Sum it Up
Bitcoin and gold, both have a really high monetary value. Bitcoin works digitally and is dependent on the electric grid, in the absence of which, bitcoin will be considered nothing. Whereas gold, under the worst-case scenario will still be accessible to its investors. In fact, it will be the fastest, most effective way to get your money back.