There are various factors involved in deciding to buy/invest in gold or bitcoin.
To first answer your question: Buy neither if you do not have enough knowledge about them and can buy both if you are quite aware of both gold and bitcoin.
Either way, this article will clear up a few things for you.
So, what should you buy?
Gold, if you purchase actual bullion and have a place to safely store it, is the only commodity without counterparty risk and has continued to maintain its purchasing power over centuries.
Bitcoins are something entirely special in that they have a very tight supply rise, and the blockchain is public. It acts as a worldwide currency that can be easily transferred across borders, but it has disadvantages such as low transaction speed.
Gold VS Bitcoin- A Comparison
The demand for gold has always been higher than its supply. This implies that rates are not fluctuating too strongly. Its resilience is contributing to its prominence as an investment option, even though market declines and collapse. The valuation of this precious metal has remained constant even throughout the Lockdown, making it a reliable commodity.
|Stability- Gold has remained to be a secure investment in the long term. This has demonstrated a proven rise in value over time, and gold prices also rise when the economy is in recession. |
Longevity- Gold is being used as currency across the world. The elegance, efficiency, and scarcity made it a perfect baseline for trading and value attribution.
Safety- When your gold is deposited in an IRA of precious metals, it will be held in a separate, secure vault which is monitored by a caretaker who will oversee your account.
|It cannot be used as currency– Gold could be used as a currency in the wake of the financial crisis where conventional fiat money is not viable anymore. Gold, however, is not a viable way of buying anything right now. |
It needs to be stored sagely– If you invest in gold, you really own a physical item that needs to be stored in a safe manner somewhere. An IRA is a common and safe choice for precious metals.
This Blockchain-based cryptocurrency is often called ‘digital gold.’ Bitcoin’s price superseded gold in 2017 and was at an all-time high of $8700 in January 2020. Only 21 million Bitcoin tokens are present which are produced by mining.
|It is easier to sell- Since bitcoin is fully digital, it can be sold for its USD value. You can meet another user and directly transfer your bitcoin using a QR code, or you can use a 3rd party exchange platform to transfer it. |
It can be used as currency- If you have a mobile wallet app that lets you pay with bitcoin; you can use it in any shop that allows bitcoin as a digital currency. Bitcoin cannot be used as a means of payment exclusively, but it is embraced by some major retailers.
Emerging- It has been only around for ten years and is therefore considered as a potential investment, which has the power to improve value exponentially. Investing in bitcoinchampion.io now could lead to massive profits in the future.
|Volatile– It is also highly unpredictable, which means it’s subject to significant price fluctuations within a short time. Any risky investment has the potential to make a big profit, but it also has the capacity to drop just as much. |
It can be stolen– Bitcoins are stored in web-based wallets that can easily be hacked, and the bitcoins can be stolen. Similarly, if you store them in physical wallets, such as a USB drive or hard drive, they can also be stolen.
To sum up, both gold and bitcoin are excellent options for buying and investing that gives owners instant liquidity. But since Bitcoin’s security protocols are not yet properly functional and are not yet accepted by many governments and corporations, gold overrules as an ideal choice.