Change is the other name of life. Since time is immemorial, every aspect of human life has been evolved. It is becoming more accessible and more comfortable for the whole of humankind. And before every significant change, there is resistance. The same way, after the advent of cryptocurrencies, there was definite resistance from a large part of the society who had reservations about its authenticity and credibility. But time and again, cryptocurrencies have proved themselves, and in its very nascent stage, they have started replacing the conventional financial system. In the meantime, it would not be an exaggeration to say that the target of cryptocurrencies is not limited to fiat currencies; they extend to billions as well. The debate of ‘the crypto king -Bitcoin vs. the bullion prince- Gold’ has aged well. As Bitcoin (BTC) recently breached 9800 USD price level, we are bringing a comparative analysis of these two investment avenues to let you judge for your wallets to gain.
Why Bitcoin vs. Gold-
There are multiple reasons why there is a debate between adopting Bitcoin or Gold. The most prominent reason is their limited availability and ‘hard to mine’ feature. Just like gold mining, Bitcoin mining has become, and mining Bitcoin also requires the kind of an effort that gold mining needs. Another reason is both Bitcoin and Gold are impossible to counterfeit. Bitcoin (BTC) works on blockchain technology having multiple checks on the privacy of the users; the same way there are numerous ways to verify the authenticity of gold. And finally, the most compelling reason- which makes both of them more attractive than fiat currency is their privacy status. In the case of both the investment avenues, the identity of the investor is concealed.
BTC Vs Gold Price Comparison-
If we compare the Year to Date price pattern of both avenues, we can quickly get an overall idea about the risks and opportunity attached to each of the products. Bitcoin (BTC) had face serious downfall in 2018, so straight out of the crypto winter; the coin did not perform well in the initial three months. Whereas Gold has shown two significant price variations in the period mentioned above. The first variation happened on 18th January when the coin gained 2.99% over 13 days, and the second hike gave 2.69% to Gold over 18 days.
The onset of April became ominous for crypto coins, Bitcoin gained 30.81% over 9 days, and on 29th April Bitcoin (BTC) again got a hike of almost 60% in the next 16 days. In the case of Gold, unlike Bitcoin, it faced resistance at 1305 USD and fell by 2.45% over 22 days from 10th April.
The latest hike Bitcoin got was on 04th June until 17th June. In this period, it got valued 20.92% more than its previous value. And Gold’s most recent significant hike happened on 22nd May, where it gained 5.10% over 16 days.
The comparison between these two valuable investment products shows that both of them are growing at a perfect pace and inferring a direct relationship between these two would be a tough task. Though Bitcoin has a more significant face value than Gold, we need to remember that the whole crypto industry is not even in its adulthood whereas Gold has been there with the humankind since Egyptians used it for the first time in 5000 BC. Gold shows maturity if we look at the variations in the price of both the products. So, Bitcoin would take much more time to be reliable like gold, but if we take quick profits into account, Bitcoin would be a prudent investment decision.