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Tarulika Jain
Feb 23, 2020
by Tarulika Jain

Can Bitcoin Replace Gold As An Investment Option?

Gold
Bitcoin has exhibited that it can be deployed to hedge against the risk while Gold’s recent growing nature presented the safe haven for investments. It stands out as the most trustworthy asset for parking the considerable sum of money, but Bitcoin is also gaining popularity in recent years.

Gold Is Not the “Completely Preferred” Choice Over Bitcoin

Gold prices have hiked around $1600 after the rapid growth of last year. Though the stock markets boomed along with increasing geopolitical and market tensions, the investment in assets boosted up. This fact shows that risk-averse assets hold a significant position amidst of go economic tensions.

Gold printed a 7-year high yesterday. Will bitcoin open an era of digital commodities trading desk in the years to come? pic.twitter.com/jJCvy363BL

Gold is considered as the safe haven for parking the money in the least risky way which has the traditional inverse relation with volatile and dangerous assets. But for Bitcoin, the contradictory relationship is still not established as the coin has portrayed the positive trends even during the period of instability. On the contrary, cryptocurrencies also experienced sudden price down, which may support the fact that bitcoin is less reliable in comparison to Gold.

Investment Distribution Among Assets

As per the analysts of the crypto market, investors must take advantage of the uptrend of cryptocurrency by parking a small part of an investment. Also, a significant portion of money must be invested in the traditional method of saving, i.e. in Gold which has the potential to safeguard the investors even during the extreme financial crisis.

Gold has the upper hand due to its high liquidity with multiple investment tools all across the world. The popularity of this commodity took off significantly when the Exchange Trade Funds (ETF) were introduced. Though ETF can divert the investment, However Bitcoin’s ETF is presumably tricky due to its continuous rejections from the US Securities and Exchange Commission.

Gold gained around 15% last year while 7% in the previous six months. Same time, BTC fluctuated but finally held the gains of more than 100% for the past 12 months.

Thus, investment choices totally depend on the needs of customers. If they are risk-takers, they can invest in bitcoins and expect significant benefits, but if the investors need a safe option to hold its resources, he must invest in Gold. Regardless of the situation, Gold is still the first choice for investment, but every day is growing exchanges hold the opportunity to stand with the commodity.

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Can Bitcoin Replace Gold As An Investment Option?
Tarulika Jain
Tarulika is an engineering graduate and an eloquent crypto blogger. Being a digital economy supporter, she keeps herself updated with the latest innovation in the crypto industry, Blockchain Technology, Internet of Things and other technologies. Currently, she curates the simple and interesting content for Crypto guides for beginners. If you want to learn more about the cryptocurrencies, latest trends of blockchain-powered AI applications, you are free to follow her on LinkedIn and Twitter.