Since the earlier days of economic development, gold has been one of the mainstream and significant assets attracting investments across the globe. Besides being the basis for the US dollar’s value for a while, gold has also been functional for hedging the economy.
However, the new entrant in the market, Bitcoin, seems to change this tried-and-tested strategy. By gaining immense traction amongst investors, Bitcoin already challenging the traditional investments in the yellow-metal as the trend reflects.
While this change in trend is interesting to witness, it also adds flame to the dilemma that should you invest in Bitcoin or gold?
Should you Invest in Gold in 2021?
Gold is one of the most reliable assets for beginning your journey into investments. Since the trading market for gold is also not too volatile, it makes for a secure investment method. However, the benefits of investing in gold also come with their share of cons, as discussed below:
Pros of Investing in Gold:
#1. Security and Simplicity
Investing in gold is one of the oldest investment methods. The availability of online gold exchanges makes it a secure and straightforward method—the well-established trading and tracking system further supplements the transparency of investing in gold.
#2. Low Volatility
The fact that gold remains one of the most reliable assets for investing proves its ability to power through economic crisis or inflation. Since the market is not too volatile, the prices usually remain constant even when the country battles with inflation.
#3. Storage
Online gold exchanges make storing the yellow metal assets more convenient for the customers. Investors no longer have to keep a physical bar of gold locked in a safe after purchasing it.
Cons of Investing in Gold:
#1. Expensive Investment
Investing in gold is not an inexpensive deed. You need enough funds to purchase a unit and cover overhead expenses like convenience fees, vendor fees and storage charges.
#2. Delayed Return
Besides being an expensive investment, gold is also not ideal for earning short-term profits. Many factors command the rise in the value of the metal, which are only visible over long-term investment.
Should you Invest in Bitcoin in 2021?
Introduced over a decade ago, cryptocurrencies are changing the face of investing market. Trading in digital currencies vastly differs from the traditional investment in gold or the usual stock trading. With the increase in shift amongst traders towards cryptocurrencies, the dilemma over investment further broadens. Below are a few of the pros and cons of investing in Bitcoin to help you decide:
Pros of Investing in Bitcoin:
#1. Global Currency
One of the major advantages of investing in Bitcoin is that it is a global currency. It gives traders the liberty to invest in digital currency from anywhere in the world and exchange it for cash or gold as per requirement.
#2. Inflation Prone
Unlike other stock investments or gold investments, Bitcoin is not government regulated. Therefore, the economic crisis or inflation faced by any country does not affect the value of Bitcoin.
#3. Cheaper Trading
Bitcoin trading is accessible to all. It does not require the trader to hold onto a license or certificate before they can begin. Moreover, the processing fee and absence of an intermediary also makes trading cheaper than other stock investment.
Cons of Investing in Bitcoin:
#1. Rarity
There is only 21 million Bitcoin that are available for trading. Moreover, becoming a miner is difficult. Its nascent stage also acts as a barrier because many companies still do not accept it as a legitimate method of exchange.
#2. Highly volatile
The cryptocurrency market is highly volatile. Its value multiplies based on speculation, market size and liquidity. Therefore, it might not attract a lot of beginners looking to invest in a safe and secure avenue for the long-term.
In Conclusion:
Trading in gold is undoubtedly one of the safest and reliable methods of investment. However, the development in technology and shift in investing ideologies comes bearing an opportunity to move away from government-regulated platforms. Digital coins offer a chance to opt for cashless investment with accessibility for all. With the coming of AI-powered trading software, like Bitcoin Circuit, investing in cryptocurrency has become even more convenient.
Bitcoin Circuit offers the option to trade either manually or through an automated programme. Its intuitive algorithm proved the most profitable trading opportunities based on regular market analysis, making trading fuss-free and straightforward like never before.