Throughout the history of humankind, there has been a fascination with a certain chemical element naturally occurring on our planet. Gold has been the staple of worth and riches of almost every civilization known to us. No matter how successful they ended up being, in some way or form gold was their main currency. People would obtain it during exploration and conquest and use it for trade. There has not really been a more important thing people instantly associate with wealth and power, at least not until a decade or so when Bitcoin appeared.
As a peer-to-peer virtual currency stored completely online, Bitcoin was the new type of currency said to change the economy, finance, and the world as we know it. Digital currencies are stored in digital wallets, mined, traded, and exchanged online using modern tech gadgets, and as the most prominent one of all Bitcoin is now worth over $19,000 per coin. There is a reason people refer to it as the modern-day gold rush and draw parallels between the two.
As such, it would seem that both gold and Bitcoin are great investments. You would be right to think so, and we will give you the reasons why in the article before you. There are many things to consider when investing and diversifying your portfolio and you will learn all of them right here and now. To find out more about this topic and make up proper investment strategies, make sure to check out dailyinfographic.com.
Source: Asia Times
Contents
1. The Finite Amount
One of the most important yet also the most overlooked reason why investing in gold and Bitcoin is smart is the fact that their amount is extremely limited. According to most estimates, there are 171,000 metric tons of gold on the planet, and it will be mined sooner than later. A lot of the places rich in gold have already been depleted and people are always looking for more. The same goes for BTC, as it is thought that the total number of minable coins is 21,000,000. Currently, over 18 million have already been mined, meaning there are less than 3 million left for miners to find. As the supply becomes lower or non-existent, the demand will rise. The same goes for all finite things especially those that are expensive and popular. Therefore, it is smart to invest in both gold and the leading cryptocurrency simply because there will soon be none left, and your supply will be worth a lot no matter how much you managed to gather.
Source: payproudly.com
2. Popularity and Use
The reasons why these two investments are so popular go beyond the mere worth of them on the market and how much dollars or euros you can get in return. When the shiny metal is concerned, there are dozens of uses for it, from its great properties in technology to marvelous and beautiful jewelry. The symbolism is also crucial in many traditions and cultures. When Bitcoin is concerned, people want it because of the anonymity that digital currencies in general allow. What is more, the technology behind it means that you can buy, sell, and trade without any third parties like banks and governments involved.
This results in a feeless market where each user is completely anonymous since the electronic wallet cannot tell you who is behind it. It is often enough to possess something simply because of what it is, let alone when it also comes equipped with a ton of real-life uses. Both of these are full of benefits, even if you just “hoard” them.
Source: cnbc
3. History and Future
Throughout our history as a civilization, wars and conquests were started in order for countries and empires to become bigger and more successful. The first step towards that is more money, hence the pillaging part of every single battle and invasion. In modern times of course that is not how we do things, but the essence of looking to be richer in order to succeed is still around. Both for gold and Bitcoin, the future is as bright as it is uncertain. Due to the finite amount of them discussed above, it can be argued that the future is promising because the prices will rise astronomically once no more of these two precious things become available. This could also be a bad thing for those who do not have a lot as the margins between people could become even wider. Bitcoin hit its peak towards the end of 2017 when it almost went over $20,000.
That was three years ago, and many experts estimate December of 2024 or the beginning of 2024 as the moment Bitcoin will skyrocket again, this time passing the threshold of seemingly impossible $100,000 per coin. This event alone is capable of turning the economy to its head, especially now in the pandemic when things are already difficult.
Source: squad
4. Drops and Rises
There is hardly something as volatile in value spikes as digital currency, BTC in particular. It is infamous for it and many people are reluctant to invest because of this fact. You can never know how much your supply will be worth the next day, even the next hour. The good news however do exist. Whenever it experienced a huge drop, BTC rebounded like a champ eventually and rewarded those who stuck with it. The same happens with gold, the difference being the time it takes to happen. When gold drops in value it means it is easily accessible, and that there are new and overflowing mines around.
When it jumps, it means that mining is currently very difficult, therefore expensive. Fewer miners are willing to risk it which again reflects in higher prices. One thing is certain for both, they have experienced and will experience big dips in worth in the future just like they did in the past. The important thing to note however is this: they will always rebound, it is just a matter of time and how much a certain investor is willing to let pass between the two events.
Conclusion and Takeaways
If we were to give you a single piece of advice here, it would be that investing in one of these is more than smart. Investing in both is even better. However, do not expect instant wealth as it does take proper planning and careful, timed business moves to be successful in these two industries. Do a lot of research and you will be fine. The more you have the safer you will be, which is exactly what should be the force that drives your investments.
