With all the stimulus packages and money printing, it’s a great time to move your money away from the weakened dollar. But where should you move it to? The 2 most popular options are Gold and Bitcoin.
Bitcoin
Bitcoin has been getting quite a lot of attention in the last few years. A lot of people called it “Millennial Gold”. It shared a lot of similarity with Gold as it is considered a safe haven from the devaluation of the Dollars.
Like Gold, it is quite hard to determine the real value of Bitcoin. People can try to speculate the price of Bitcoin, but the real value could be $1 or $1,000,000. No one really knows!! But unlike Gold, we know exactly how many Bitcoin there is, 21 million. And so far, about 18.5 million has been mined.
Since we know there is a limited amount of bitcoin in circulation, this is the argument for why Bitcoin will be more valuable than Gold. It’s certainly a valid argument, but there is probably a limited amount of Gold too. We just don’t know the exact figures.
1 more thing to consider about Bitcoin is volatility. Bitcoin price can go up or down quite sharply and this can cause a lot of emotional swing for investors.
Gold
Gold has been around for thousands and thousands of years. It has proven its value as a hedge for crises through decades. Even Central Banks around the world buy Gold to protect themselves against inflation and crises.
Unlike Bitcoin, where you can only use it as a medium of exchange. Gold has a lot of application like in jewellery, ornamental objects, electronics, computers, dentistry, glass making, medical, aerospace,…
Gold has also proven as a store of value through our long history. So compared it with Bitcoin 12 years track record, Gold certainly would be a much more reliable choice for conservative investors.
Final thoughts
Both certainly have their pros and cons. But Gold seems to be a better choice for conservative investors due to its application and proven track record.
But Bitcoin performance in the last 12 years is remarkable and it can be a wild card that 5x your investment. But again, when the upside is lucrative, the downside can be detrimental too. And the best investor in the world, Warren Buffett said: “Rule No. 1 in investing: Never lose money”.
If you are looking to buy Gold, check out our gold purchasing platform First Gold, which allows you to buy gold using the Dollar-cost averaging strategy.
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