I am a Bitcoin enthusiast and an investor in many coins. But as a writer, I need to present both sides of the coin, right? Till now, I have only talked about why Bitcoin is better than Gold but now let’s consider it the other way around. There are many solid reasons why Gold could do better in the long run than Bitcoin. Gold has been a safe haven for investors for quite a long time, and it might not change anytime soon. Let’s see why!
Is gold better than Bitcoin?
To answer that question, let’s go back to the year 2017 when Bitcoin rose to new highs and, for the first time, gained immense popularity. But soon after, it crashed and left investors worried about their capital. And it was not just in 2017. BTC does have a 4-year cycle where it rises immensely before halvings take place and then crashes to low levels. The argument that is used in favor of Bitcoin, saying that it is a hedge to inflation, also has its flaws. In 2020 when the market crashed, the value of Bitcoin fell more than other stocks, and that shows the high volatility of the coin.
But you say things are different this time? Well, maybe yes! I do think that things are quite different from the 2017 price hike and crash that happened. But it still doesn’t change the fact that BTC had a rough history of prices. We do have a lot of notable names in the industry like Elon Musk, Michael Saylor, Jack Dorsey, and others, but even bigger names in the investing world like Warren Buffet and Rakesh Jhunjhunwala have shied away from Bitcoin. Rakesh once said that the government should ban it because the right to make a curreny should lie with the sovereign.
All this, combined with the fact that the price of Bitcoin swings immensely while losing and gaining 10%,20%, or even higher in a matter of hours, it is not a safe investment. The way Bitcoin performed in 2020 makes it a much better asset than Gold, but in the long run, if things go sideways, gold can do better.
Is BTC useless?
No! It is not. People have their doubts and speculation about every new form of asset, and it’s completely natural. Though it is not sure what the future of Bitcoin will be, for now, it seems like a good investment to me. The risk to reward ratio is very high, and so it is not for everyone. If you are okay with 20% dips in a few hours followed by 50% gains, then BTC is for you, but if you are okay with 10% returns of Gold, then yeah, go for it (No one is Judging). You can still talk about how you invested in Bitcoin on Twitter and in front of your friends to sound cool (PUN INTENDED).
Do you think that gold could do better tha Bitcoin in the long run? And is a BTC crash just around the corner? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.