With the rise of cryptocurrency, especially ‘bitcoin’, people have started referring to it as the ‘digital gold’, due to its value increasing over the years. However, for centuries, gold has been considered to be the best option for investing. Here, we will discuss the advantages and disadvantages of both.
Gold is a safe-haven asset for different reasons. One of the main reasons is that it is valuable for several consumer goods such as electronics and jewelry. Due to its scarcity, the rarity of demand and supply, it is valued by many. It is not possible to manufacture gold by a company just like federal bank prints money or a company issues shares. Gold always needs to be dug up from inside the ground after which it needs to be processed.
Sometimes gold prices can experience volatility similar to stocks for the short term, over time, the value of the precious metal has always remained stable. As we are living in a time where there is a lot of market volatility, having a portion of your portfolio allocated towards gold does make a lot of sense.
Cryptocurrencies such as bitcoin are new and have been around for a little over ten years. Due to this, it is considered an emerging investment, and despite the fact that it can increase in value exponentially, it comes with a few disadvantages. The biggest disadvantage of Bitcoin is that since it is completely digital, a place is required to store it, whether it is a mobile wallet or a physical hard drive. However, since we know that cybercrimes are common these days, your bitcoin can sometimes get stolen, if your web-based wallet gets stolen. Even a physical wallet such as an external hard drive, or a flash drive can be stolen from your possession which makes bitcoin extremely risky.
Another risk with Bitcoin is that its value lies in supply and demand. If the demand for another type of cryptocurrency increases, then the value of bitcoin can decrease significantly.
However, gold is something that never loses its value, regardless of time . For centuries and all over the world, it has been used as currency all over the world. So, if you are thinking of long-term investment, gold might be a better option.
So if you are thinking to buy gold, you can choose Park Avenue Numismatics, which is one of the most trusted places online for purchasing gold, silver, or if you are looking to sell rare coins for cash. Get in touch with them today: https://www.parkavenumis.com/
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