From shadowy beginnings, the cryptocurrency is becoming increasingly mainstream, but Bitcoin’s value still yo-yos violently and its future is highly uncertain. Gold investment by contrast is far more pedestrian, maintaining a measured store of value throughout the millennia. Are you prepared to bet your future on a roller coaster ride?
It is currently fashionable to pay for your latte with Bitcoin at the handful of trendy coffee shops that accept the cryptocurrency. You could also theoretically use your legal tender gold coins to pay for a macchiato, (although they might struggle to give change for a£970 ounce of gold). Both are a form of currency, and both are highly valued in the market today, but which is a better investment?
Any currency relies on the belief that someone else will want that currency and you will be able to exchange it for goods. Reputation matters and it is in this regard Bitcoin comes to the table at a distinct disadvantage, with very little history and a reputation as the currency of choice for thieves and black-market traders (a legacy of its use by unscrupulous online criminals who appreciate its anonymity). That said its value has surged (and plummeted) over the last few years, so there are some investors who bought and sold at an opportune time and made a profit, but its volatility has worked against it too.
Josh Saul, CEO of The Pure Gold Company says: “When Bitcoin dropped in late 2017, we had a lot of people liquidate what they could to purchase physical gold – they craved safety, security and consistency. We’ve seen a 76% increase in people selling Bitcoin to purchase physical gold in 2018. Some of our clients are comfortable purchasing Bitcoin, but only if they also own gold to iron out the volatility.”
Source: Financial Money Tips