The yellow metal is a must have for most Indians especially during the wedding season. For many, gold is a symbol of wealth and social stature. For investment purposes, gold is considered a stable option with almost guaranteed returns in the long term. Bitcoin, however, is considered a better investment for short-term potential gains. But, this cryptocurrency is volatile and also has the potential to lose a lot of money.
Before we weigh gold and bitcoin as investment options and which is better, let’s first understand them individually.
The concept of bitcoin was introduced in 2008 and implemented in 2009. Bitcoin is a computer file which is stored in a digital wallet app on computer or smartphone. Every transaction is recorded in a public list called the blockchain. Bitcoin can easily be transferred and sold to another user for its USD value. One can meet another user and transfer your bitcoin in person using QR code. Alternatively, one can use a third-party exchange service that will digitally connect you with an interested buyer.
Bitcoin can be used as digital currency at any store that accepts it, as long as you have a mobile wallet that allows you to pay using bitcoin.
The concept of Bitcoin is relatively new and because of that it’s considered an emergency investment. Investing in Bitcoin now could lead to huge returns later. It is extremely volatile in nature and is prone to large price fluctuations in a short period of time. It has a potential to crash just as heavily as it gains. Another drawback of this completely digital mode is that your web wallet can be hacked and bitcoins be stolen.
Now, let’s move to an all-time favourite metal that has proven to be a stable investment in the long run. Even during recession, when everything is falling, the prices of gold often rise. Gold is an old way of investment and has been used as currency around the world and across time periods. Though it is no more accepted as currency but it has stood the test of time and the yellow metal has proved to increase in value over time.