Bitcoin Forum

Bitcoin => Press => Topic started by: iamTom123 on July 03, 2017, 03:30:46 PM



Title: [2017-07-03] Bitcoin vs Gold – Pros and Cons
Post by: iamTom123 on July 03, 2017, 03:30:46 PM
Quote

Diversifying one’s investment portfolio remains a top priority, even in the year 2017. All markets are subject to volatility, which always creates a growing demand for store-of-value options. Both Bitcoin and gold are quite attractive in this regard, as they both have their advantages and drawbacks. However, both assets should be part of any serious trader’s portfolio and this article will explain why.


Most people invest in assets and currencies for one of two reasons. Either they want to make a profit over time, or they want to protect their current wealth from losing value. Finding investment opportunities which can gain in value has become a lot harder these past few years. In fact, most traditional options only lose their value over time, making them unsuitable to hedge against market volatility.

Gold always had a certain appeal to investors all over the world. It is a globally recognized as a valuable item, which can be converted to nearly any fiat currency. Gold is also somewhat easy to transport in small quantities, and there will always be demand for this commodity. Moreover, gold is scarce, which makes it a decent store of value solution. Most investors and traders have had gold as part of their portfolio for quite some time now, and that will not change anytime soon.

Most of these principles apply to Bitcoin as well. One can convert Bitcoin to fiat currency at any given moment, either through exchanges, peer-to-peer marketplaces, or ATMs. It is also globally available, albeit it is not as widespread as gold in this regard. That situation may come to a change though, as gold has been in circulation for centuries, whereas Bitcoin is only nine years old. Bitcoin is also more scarce than gold, since we know the exact amount of coins in circulation, as well as its hard supply cap. For gold, these two factors are somewhat hard to determine.

One thing Bitcoin has in its favor is how it can easily be transported regardless of its quantity. Since a Bitcoin balance is stored digitally, it can reside on a computer, laptop, smartphone, or even a hardware wallet the size of your average USB drive. Gold on the other hand, is often transported in its physical form or through a paper variant, which acts as an IOU. Many people prefer the digital format over paper or physical weight though, as moving gold around the world in a digital form remains quite difficult.

Complete article here.  (https://themerkle.com/bitcoin-vs-gold-pros-and-cons/?utm_medium=push&utm_source=onesignal&utm_campaign=traffic%20boost&utm_content=extended%20%traffic%boost)

Gold is called as the safe haven by many investors big and small. It has been used in human history on many ways. Gold is always the symbol of wealth and prosperity. Most fiat currencies had been backed by gold until such a time when it become old-fashioned most especially in our modern times where the government can just decide to print more paper money and flood the market resulting into guaranteed inflation.

Bitcoin has been called as the digital gold and for good reasons. They have some similarities though gold is physical and transporting/transferring them can be difficult while Bitcoin can be done with ease. Both are also limited in supply.

Which of the two is the best choice for an investment vehicle? Gold has been flat as far as growth in value in concern and this has been for many years while Bitcoin made an astronomical mark since its inception.

I can have both if you would ask me though for now I prefer Bitcoin because I can easily buy and sell them.


Title: Re: [2017-07-03] Bitcoin vs Gold – Pros and Cons
Post by: Lucius on July 03, 2017, 04:15:42 PM
Quote

Diversifying one’s investment portfolio remains a top priority, even in the year 2017. All markets are subject to volatility, which always creates a growing demand for store-of-value options. Both Bitcoin and gold are quite attractive in this regard, as they both have their advantages and drawbacks. However, both assets should be part of any serious trader’s portfolio and this article will explain why.


Most people invest in assets and currencies for one of two reasons. Either they want to make a profit over time, or they want to protect their current wealth from losing value. Finding investment opportunities which can gain in value has become a lot harder these past few years. In fact, most traditional options only lose their value over time, making them unsuitable to hedge against market volatility.

Gold always had a certain appeal to investors all over the world. It is a globally recognized as a valuable item, which can be converted to nearly any fiat currency. Gold is also somewhat easy to transport in small quantities, and there will always be demand for this commodity. Moreover, gold is scarce, which makes it a decent store of value solution. Most investors and traders have had gold as part of their portfolio for quite some time now, and that will not change anytime soon.

Most of these principles apply to Bitcoin as well. One can convert Bitcoin to fiat currency at any given moment, either through exchanges, peer-to-peer marketplaces, or ATMs. It is also globally available, albeit it is not as widespread as gold in this regard. That situation may come to a change though, as gold has been in circulation for centuries, whereas Bitcoin is only nine years old. Bitcoin is also more scarce than gold, since we know the exact amount of coins in circulation, as well as its hard supply cap. For gold, these two factors are somewhat hard to determine.

One thing Bitcoin has in its favor is how it can easily be transported regardless of its quantity. Since a Bitcoin balance is stored digitally, it can reside on a computer, laptop, smartphone, or even a hardware wallet the size of your average USB drive. Gold on the other hand, is often transported in its physical form or through a paper variant, which acts as an IOU. Many people prefer the digital format over paper or physical weight though, as moving gold around the world in a digital form remains quite difficult.

Complete article here.  (https://themerkle.com/bitcoin-vs-gold-pros-and-cons/?utm_medium=push&utm_source=onesignal&utm_campaign=traffic%20boost&utm_content=extended%20%traffic%boost)

Gold is called as the safe haven by many investors big and small. It has been used in human history on many ways. Gold is always the symbol of wealth and prosperity. Most fiat currencies had been backed by gold until such a time when it become old-fashioned most especially in our modern times where the government can just decide to print more paper money and flood the market resulting into guaranteed inflation.

Bitcoin has been called as the digital gold and for good reasons. They have some similarities though gold is physical and transporting/transferring them can be difficult while Bitcoin can be done with ease. Both are also limited in supply.

Which of the two is the best choice for an investment vehicle? Gold has been flat as far as growth in value in concern and this has been for many years while Bitcoin made an astronomical mark since its inception.

I can have both if you would ask me though for now I prefer Bitcoin because I can easily buy and sell them.

Gold has proven through history that is always a good investment and we all know that the situation is the same today,you can not make a mistake if you invest in gold.If we take in consideration that BTC depend on internet to be sent or received which is on the one hand advantage,but on the other side and a big disadvantage.If network is down for some reason BTC practically becomes useless.

Gold does not have such a problem and whatever happens if you own some gold you can trade for something else.But BTC is very attractive asset these days considering further possible increase in the price.So it would be smart to use that and some profit received from BTC invest in gold as a kind of insurance if something bad happens to BTC.