3 Differences between Bitcoin and Gold

The two main financial assets in India which provide various investment benefits to their holders are Bitcoin and Gold. They both are the leading investment options in the capital market.

Bitcoin is the most famous and top cryptocurrency in Indiawhich is currently pricing at Rs. 34,09,090.36. It is the first-ever cryptocurrency that was introduced in the year 2009 by an anonymous group named Satoshi Nakamoto. Since then it has emerged as a successful virtual currency around the globe. It is fully based on blockchain technology and is the most preferable crypto in India Invest in BTC through Uphold.

On the other hand, gold is among the most precious metals for a very long time. It was discovered much earlier than bitcoin and continues to be one of the important and considerable investment options in 2021.

In the pandemic, it is observed that some people shared the common interest of investing in bitcoin and gold. Moreover, they made such wise and calculated choices to be financially stable during the tough phases of lockdown. In short, they moved towards safe-haven assets.

Now, the question arises, how did they make such decisions?

The answer to this question is that they must have compared and found out the differences between bitcoin and gold to know the advantages, disadvantages and suitability before making their final choice.

To help you out in the same, here are the 3 key differences between bitcoin and gold.

Difference based on volatility

One of the common reasons why bitcoin is the best cryptocurrency in India is its volatility. By reviewing the last few years performance and market price of this crypto you can check the volatility rate and returns of bitcoin. The rewards are very prominent which makes bitcoin by far, the safest, secure and rewarding digital asset with higher returns for short term investments.

Whereas, gold prices can potentially fluctuate with higher margins in the short term. So, it can be concluded that the benefits of gold can be availed in the long term but may not be suitable for short term capitalisation.

Difference based on safety

Gold can be stored in vaults that are guarded by custodians who are obligated to safeguard the investor’s account. Also, the account is guaranteed up to a specific amount which makes it safer and more assurable.

However, bitcoin being a digital currency doesn’t involve any special account or vault. But, there are several digital wallets provided by many crypto exchanges like Wazirx to safely keep the cryptocurrencies in one place. Though, these wallets have a constant threat of hacking and unethical practices due to the cloud-based structure followed by the companies.

Difference based on transparency and legality

When it comes to differentiating bitcoin and gold in terms of transparency and legality, it can be said that gold is better than bitcoin. As gold has a set natural method of selling, buying, tracking etc. Also, the legal procedure for investing in this metal is quite simple and easy.

On the other hand, bitcoin is very hard to track because of the high-security web design. It is quite impossible to check and look for any fraudulent activity prevailing within the network which makes it less transparent than gold. For legal proceedings, it requires much time and efforts 

Bottom line

Apart from the above-mentioned differences, the baseline value is also considered important while differentiating bitcoin and gold. However, both of them are advantageous in their own way, but it is always recommended to do your research and contact certain crypto trading companies and gold traders to develop a better understanding of the current scenario of the two.

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