Davos-2022
Davos-2022
Davos-2022
Davos-2022
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Bitcoin vs gold: Which is a better investment option?

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Bitcoin and gold have an inverse connection with the US dollar and are frequently purchased as hedging instruments. Both assets are commonly used to diversify a portfolio or to protect against fiat currency inflation.

Bitcoin vs gold: Which is a better investment option?
Bitcoin and gold have an inverse connection with the US dollar and are frequently purchased as hedging instruments. Both assets are commonly used to diversify a portfolio or to protect against fiat currency inflation.
People have always invested in gold, which has provided significant returns in the past. However, in the last one year, Bitcoin has outperformed gold and provided fantastic gains. Millions of people who had never regarded digital currencies as an alternative asset have been drawn in by the Bitcoin bull run.
About Gold
Gold has long been considered a safe-haven asset choice of investment. The yellow metal is valuable as a material for consumer goods such as jewellery, and it is not in abundance; it has a long history as an investment avenue. In addition, the liquidity of gold has been consistent over time. People across the world believe in the principle that when other assets fail to provide stability, they turn to gold.
As a result, whenever there is instability in the global equities markets or political tensions between major countries, gold prices rise dramatically. Even during a crisis, the gold price is reasonably stable, and it does not drop by a significant amount.
About Bitcoin
Bitcoin is a digital or virtual currency that can be used to buy and sell items and invest anywhere in the globe at any time. The total supply of bitcoin is limited to 21 million tokens by Satoshi Nakamoto, the pseudonymous creator. Bitcoin is a decentralised cryptocurrency that is created by the combined processing power of "miners," individuals and groups of people who work to verify transactions on the Bitcoin network and are rewarded with bitcoins in exchange for their time, computing power, and effort.
Bitcoin has been dubbed "digital gold" by cryptocurrency aficionados, who believe the popular virtual currency will eventually outperform traditional gold bullion. Cryptocurrencies have sparked a lot of interest in India recently, and many Indian investors have joined on bandwagon.
Summation
Both Bitcoin and gold have passionate investor bases, and both are used to diversify and store a variety of valuable assets, however, they are very different in many aspects. They have their own advantages and disadvantages of investing.
While conservative investors in India still rely on gold as a stable investment avenue, new-age investors are realising the potential of crypto investments hence adding crypto to their portfolio to ride the momentum trade. As the Bitcoin growth continues, more investors are reconsidering the long-standing analogy between Bitcoin and Gold. Gold is preferable for conservative investors, while Bitcoin is worth checking out for individuals who want the adrenaline thrill of a roller coaster. It is entirely up to an investor's decision as to where he or she choose to invest.
This article has been written by CoinDCX research team. The views expressed are personal
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