The Covid-19 pandemic caused yet another economic recession that had larger financial implications. As an investor, you must be tempted to follow the traditional way of investing in precious gold and silver. But can it still be an effective solution to hold your economic status during any recession period in the future?
If you Register to a reputable platform, you will realize that investing is not the same concept as it was, even a decade back. With the continuously increasing popularity of cryptocurrencies, especially Bitcoin, it’s time to challenge the old-school method of capital preservation.
Bitcoin Investment- A Rewarding Asset That You Don’t Want To Miss Out On
Financial researchers all over the world are considering Bitcoin as an interesting alternative to the traditional forms of assets. The application of blockchain technology in the making of cryptocurrencies provides a safe and secure option for investment.
- Digital currencies have opened up a new avenue and format of investing, which is more meaningful to the investors.
- Despite the volatility of the market, the surge in the price of Bitcoins in 2021 showed the entire world how Bitcoins can become a better rewarding option.
It seems that Gold bullion is not the prime option for investing anymore. As people worldwide are contributing to the trading of cryptocurrencies, the old-school capital preservation method is changing.
Why Bitcoin Is A Better Investment Than Traditional Assets
Many of you buy cryptocurrencies because the values are appreciating and meaningfully surpass the value of other asset classes. Here are a few reasons why you should start investing in the cryptos instead of gold if you are looking forward to a better return.
Reason #1: Durability
No one can destroy Bitcoin and it cant perish. So as long as the network survives, Bitcoins will also survive as the cryptocurrencies are decentralized. Gold is also durable, but the possibility of losing the physical metal is higher than losing the virtual currencies.
Reason #2: Fungible asset
Bitcoin is easily fungible as you can exchange it to procure goods and services a[art from acquiring other cryptocurrencies of equivalent value. But the interchangeability of gold is not as convenient as that of cryptocurrency.
- Golds come in different varieties of purity. You have to ensure whether the one that you are acquiring in exchange for your asset has the exact purity like 18K or 24K.
- Exchanging gold is not as easy a process as Bitcoins.
Thus, if you ask the experts which one will have the edge in this regard, the edge goes to Bitcoins.
Reason #3: Ease of portability
All of you know about the ease of storing and transporting Bitcoin. You don’t have to own a physical vault or locker or safe to keep the asset secured. All you need is a safe platform where the security layers are strong to avoid any possibility of cybercrimes.
- It’s possible to transmit a large number of Bitcoins to anyone located at any point of the globe using your smartphone.
- But can you easily transport gold? You have to plan a very safe process to transmit, and a longer distance will add to the complications.
Therefore, if you are into regular investing and exchanging, Bitcoins are always the ideal option.
Reason #4: Divisibility
Dividing Bitcoin is easy. The crypto is divisible up to eight decimal places, out to 1/ 100,000,000, which has an accurate worth. But it is impossible to divide gold accurately with an exact evaluation of the value.
Reason # 5: Scarcity
The mining procedures for both gold and bitcoins are complex. But as there is a finite number of Bitcoins, there is an approximation of the time by which it will be completely mined. But the finite level of gold is evident as the price is increasing owing to the difficulty in mining and supply.
Reason #6: Maintenance cost
When you are the owner of gold bullions, you also need to maintain it or pay a certain amount for its maintenance and secured storage. But you don’t have to pay a penny for storing the Bitcoins in your account on the crypto exchange platform, irrespective of the volumes you own.
As you now know about the reasons why Bitcoin can be a potentially better option for investment in comparison to gold, it’s time to make your decision. Choose the option which will be futuristic and rewarding.