There have been numerous comparisons done over the last several years between gold and bitcoin, in order to determine which product is the better investment. In order to answer that question there are several factors that need to be considered.
Long Term vs Short Term:
As a long term investment, gold is difficult to beat. It has a time-tested and proven yield, with small but regular gains coming to the investor over time. Bitcoin is an extremely flexible product and the market for it is extremely volatile. These factors allow timely investors to realize substantial short term gains which assist them in making great profits.
Ease of Use:
Gold obviously isn’t easy to use as a currency anymore, and there are few things easier than a currency that is available with a mouse click. The ease with which the bitcoin is used by the users however, is the major advantage to having bitcoin as an investment. People like things that are easy, especially the younger generation that has spurred bitcoin’s popularity since its inception. If something is easy, or makes the user’s life easier, it will become popular. That makes for a good return on any investment, anywhere, anytime.
There has always been a very small modicum of risk when it comes to investing in gold. That has been one of its most attractive features over the years. It is a stable investment that very rarely leads to a loss for the investor. Bitcoin on the other hand has been volatile by nature. It is that same volatility that investors who like investing in bitcoin have come to expect. In fact, they count on it. The high-risk, high-reward nature of the product is what makes it attractive to the average bitcoin investor.
While it has historically been a low risk investment, in the last 40 years gold has gone from trading at $30.00 to a high of almost $2,000.00. Unfortunately, it has then dropped for many investors who bought high, and currently stands at about $1,350.00. Bitcoin went from being nearly worthless to a high of around $1,200.00, and now rests around $600.00.
What this analysis tells us is that gold is a better investment for the more conservative investor, who enjoys minimal gains and is satisfied with a minimal chance for loss. Bitcoin is the better investment for a heavier risk taker, or someone who has the