Thousands of years ago people began to use gold to making coins to conduct trade with. However, gold quickly caught the eye of investors, primarily due to its usefulness and the liquidity it provides for trade. Since that time, its value has been increasing against fiat currency. Due to its versatile usage in the industry, gold has stood the test of time while retaining its uniqueness and good reputation as a reliable precious metal to invest in.
Bitcoin, on the other hand, has only been around for less than a decade. It appears on the computer screen as a digital code and is not tangible nor physically present. However, because this is an age of digitization and technology, Bitcoin has enjoyed every privilege of being a trustable investment despite its immaturity and limited applications.
Let’s take a look at some of the matching and contrasting features of both these things and make it easier for you to choose one of them for investing your hard earned money in.
Despite the physical and behavioral differences, Bitcoin and gold have some things in common. For example:
Some Contrasting Facts:
Here are some uncommon features of these assets that make a huge difference between their applications.
We will have to consider some facts before crafting a conclusion. These are some of them.
Inflation: Which One is More Prone?
Inflation can be a serious problem for any asset’s value. As far as Bitcoin is considered, its supply is kept limited to maintain a balance between supply and demand.
Gold's supply rate, however, has been increasing at 2% yearly for over a century now. But this is not a considerable problem keeping in mind the number of incoming investors. So, we can conclude that Bitcoin is more prone to inflation than gold.
Elemental Value of Gold:
Gold has an important role to play in our social lives. It is immune to erosion and is a chemically stable element. Bitcoin, on the other hand, will have to keep its existing users in the circle while attracting more people from outside to compete Gold it this area. Considering this fact, Bitcoin is at an advantage over Gold in terms of value.
The Final Word:
Both of these assets are dependable and useful to invest in. But the final decision depends on whether you choose technology over convention or not. Here are some reasons you can consider to prefer each one of these over the other.
Bitcoin Over Gold:
Gold over Bitcoin:
These were some facts we arranged to make the comparison clear. After all, the decision is yours to make. Trading is a better financial option overall. It just takes a sharp mind and good strategy to master this art.