One of the rules that some investors have is to back part of their portfolio on gold.
Gold is the asset that holds the value of cash and money. It has decades, if not a century, as a proven effective.
However, even when Bitcoin is a young asset, cryptocurrency speculators believe that its value could survive corrections and recessions.
Several investors and institutions added Bitcoin to their reservers.
How are gold and Bitcoin compared?
Bitcoin emerged 13 years ago, while gold has Millenials around human civilization and centuries as a
According to data, the earliest record of gold and civilization dates back to 4000 BC.
Gold is essential in today’s economy, and it has played a pivotal role in geopolitics since we have memory.
Nevertheless, some experts believe that age doesn’t mean anything.
Bitcoin is new, but it doesn’t mean is not secure. The blockchain is unhackable, and the crypto asset created more wealth than gold in the last 15 years.
With gold is almost the same thing. It is an asset very hard to steal or fake, and it is highly regulated.
It is easier to acquire Bitcoin than invest in gold. You can store Bitcoin online or on a hard drive at minimal costs.
“Currently, the average bitcoin transaction costs about $1.50 and is likely to be completed in about 10 minutes.”
Meanwhile, you need a specific and secure place for physical gold.
Bitcoin is volatile, like all cryptocurrencies.
Experts believe it is the best crypto investment in the market. However, it is more volatile than gold.
“According to portfolio optimization Bitcoin’s standard deviation – a measure of how much it can move beyond its average price in either direction – is 4.34. Compare that to gold’s standard deviation of just above one,” said Yahoo Finance.