Gold has been a valuable commodity for centuries and it still is a popular investment option up to this day. It is a safe investment, and it is easy to trade. Bitcoin and other cryptocurrencies are a new form of currency that have gained popularity in recent years. Many people are wondering which is better, gold or Bitcoin? While these cryptocurrencies are on the rise, there are reasons that still make gold a better investment.
The History of Gold
For centuries, gold has held an appeal for civilisations around the world, being used as a form of currency, jewellery and even idols for worship. Some of the earliest forms of currency in ancient times were in gold coins to buy items such as bread, beer and clothing, among others. It was considered a form of currency by many societies, including ancient Egypt’s 18th dynasty. By 9AD, Egyptians were using gold as coins to buy goods and services.
Even though people have used it for thousands of years, the official gold standard was only set in 1871 by Richard Nixon with the Gold Standard Act. It wasn’t until 1971 when this Act got repealed with Nixon’s New Economic Policy that gold became a less valuable asset for currency. However, this still means that gold has been used as a form of currency and store of value for thousands of years.
The History of Bitcoin
Bitcoin was created in 2009 by someone using the alias Satoshi Nakamoto. It is a form of cryptocurrency that uses cryptography for security and verifies transactions through blockchain technology. Its popularity has grown exponentially since then, with many companies accepting it as payment and its value skyrocketing over the years.
Although Bitcoin started out as an alternative to traditional forms of currency, it isn’t considered legal tender. There is no physical form of Bitcoin; it is simply electronic information that would buy you goods and services.
The Advantages Of Gold Over Bitcoin
When you buy gold, you purchase a physical asset that has been in existence for thousands of years. In comparison, Bitcoin is a cryptocurrency that has only been around since 2009 and its value isn’t always stable. There are three reasons gold is still better than Bitcoin:
1. Gold Is A Durable Investment
Gold can last for hundreds, if not thousands of years, and still have high value attached to it. This means that when you buy gold Adelaide offers, for example, you buy something that has incredible longevity and its value will remain unquestionable throughout time. In comparison, Bitcoin is much more volatile and its value can significantly decrease in a short space of time. If you buy Bitcoin, your investment can diminish quickly. Bitcoin is a digital asset that is not backed by any physical assets. Its value is based purely on supply and demand; it can crash just as easily as it can rise in price.
2. Low Transaction Fees With Gold
When you buy gold, there are low to no transaction fees involved as this is a physical asset with high value attached to it. If you buy gold online, for example, there may be a small fee involved but it won’t make up too much of your total buy. However, if you buy Bitcoin using another currency or your credit card, there is an array of fees that will significantly decrease the amount of money you put into buying it.
3. Gold Is Easily Tradable
When you buy gold as an investment, it is easy to buy, sell and trade. Gold doesn’t have a specific country tied to it as Bitcoin does. For example, if you buy Bitcoin in Malaysia for MYR, you would need to buy Singapore dollars first before converting it into US dollars so that you can buy Bitcoin on an exchange. This process can be confusing and time-consuming, whereas when you buy gold, it is readily tradable and straightforward.
The Advantages of Bitcoin
Although gold is a more stable and dependable investment in comparison to Bitcoin, there are also three reasons Bitcoin has an appeal over gold. The first and most important reason is that it is anonymous and secure compared to using traditional currencies. When you buy gold online, the seller will need personal information such as your name, address, and occupation before they can buy and sell it. However, when you buy Bitcoin, there is no need for any personal information as cryptocurrency is automatically anonymous. The second reason is that gold is a physical asset, which makes it heavy and difficult to buy and sell anywhere in the world. However, Bitcoin can be bought and sold anywhere as it is completely electronic and it doesn’t need an exchange. The last reason is that gold is a tangible asset, but its value isn’t always stable. In comparison, Bitcoin’s price can shoot up and down in a short amount of time. This makes it a good choice for short-term investments or day-trading.
The Conclusion
As the price of Bitcoin continues to skyrocket, more and more investors are wondering whether they should invest in Bitcoin or gold. Both assets have their pros and cons.
Ultimately, gold is a more stable buy as it has been around for much longer and will continue to be worth something in the future. While Bitcoin may have many advantages over traditional currencies and other cryptocurrencies, the history of gold as a form of currency for thousands of years still makes it a more valuable investment option.
