The Buyt Desk
Saving and investment go hand in hand. For building a financially secure life you must plan your investment carefully. Gold is considered to be one of the safest investments. The yellow metal has also not disappointed the investors. In the time of the pandemic, gold touched its lifetime high and generated very good returns for its investors.
However, during the pandemic, a new type of investment caught investors attention. The most significant attribute of this new investment was that it outshined the return of gold. It is none other than cryptocurrency. The value of cryptocurrency is rising sky high and, therefore, for seasoned investors, it has become a hot cake. Cryptocurrency is witnessing a gradual and steady growth which is making it a credible investment option.
With the changing time, crypto is challenging the traditional safe-haven method.
What is Favouring Cryptocurrency?
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There are many cryptocurrencies, among which Bitcoin is the most popular one. Crypto and gold are often compared because both are independent identities. They have no relationship with any other market, especially the stock.
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Just like gold, the stock of bitcoin is also limited.
What is Favouring Gold?
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It is not just valuable but also material for use, such as jewellery. However, in this case, the buyer had to bear the making and other charges.
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Despite the high demand, the supply of gold remains low.
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Manufacturing of gold is not possible. It has to be taken out from its source. On the other hand, companies can issue new shares of cryptocurrency.
Comparison Between Gold and Cryptocurrency
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Based on legality and transparency, gold gets a high value.
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Both gold and bitcoins are rare.
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Based on liquidity, both cryptocurrency and gold are good. However, gold is less volatile than cryptocurrency because it is a traditional and credible investment product.
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Gold is the currency used by the world bank and other international banks.
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Investors can buy both gold and cryptocurrency based on their budget.
Both gold and cryptocurrency are safe investment products. However, with time, cryptocurrency has given tough competition to gold and has gotten an edge in a few places. If you are planning to invest in the same, you can but only after thorough research.
