Have you ever thought of Bitcoin like Gold? When you think of both things there are definite similarities and differences. Bitcoin is worth thousands of dollars per coin, while Gold is worth over a thousand dollars per ounce. Many people invest and trade Gold and many people invest and trade Bitcoin. The one difference at the moment is that very few people use Gold to buy goods, while more and more people are using Bitcoin to buy things.
Bitcoin vs. Gold
You may not have thought of Bitcoin and Gold in the same way but Brendan Blumer from Block.one has said that it won’t be long before we think of the two in the same way. “Over the next two decades, #Bitcoin will replace #gold as the leading commodity to store value.” Blumer said on Twitter.
Bitcoin is a cryptocurrency that can be bought and sold within minutes and it has a limited supply. Gold is a commodity that can also be bought and sold within minutes but the supply of gold is constantly changing. Bitcoin has seen a wild price fluctuation since it was created and Gold has also seen many ups and downs throughout history.
Bitcoin has actually been lost, as over 25% of Bitcoin has been lost since it was created. Gold has also been lost many times over the years, as there are countless stories of ships going down in the ocean loaded with gold.
Bitcoin is stored electronically, while gold is stored both on paper and in vaults. Did you know that in 2017, London held more than $200 billion in gold bullion? Some people have actually called Bitcoin “Digital Gold” because it was created as an asset that is similar in some respects to Gold.
One of the big differences between Bitcoin and Gold is that people who own Bitcoin actually own the Bitcoin in terms of property. Many people who own Gold only own it on paper. If you just have a paper that said you have an asset it is not the same thing as actually holding the asset. There are exceptions however, as there are some people who do have physical gold in their possession.
Investment Choice
If you are going to invest, what should you choose, Bitcoin or Gold? The first thing that many people look at when investing is safety. There is no question that investing in Gold is a safer choice than Bitcoin. There is not nearly as much volatility with Gold as there is with Bitcoin. Gold has a reputation that dates back thousands of years, while Bitcoin is just the newcomer on the block. Gold can also be stored in a physical location more easily than can Bitcoin, while most people store Bitcoin in an online wallet. If you are looking simply for safety, then it is hard to argue with Gold.
If you look at the price then you may want to choose Bitcoin as your investment choice. Gold has seen wild price fluctuations, just like Bitcoin, but most of the big moves in Gold occurred many years ago. The price of Gold hit its high in the 1970’s and then fell in price until the 1990’s. It has been pretty much steady in the last decade.
Bitcoin peaked in value at $20,000 in late 2017 and then fell down dramatically. It now sits at about $4,000. If Bitcoin follows the pattern of Gold then it is very possible that it will rally in price to at least double its current price. Some analysts are more bullish, as they think Bitcoin could establish a new all-time high in 2021, while other analysts believe that the current price of $4,000 is as high as Bitcoin will go.
If you have never invested in Bitcoin or have not yet used Bitcoin to buy or sell goods or to transfer money, now could be the time. Many online sportsbooks are using Bitcoin as a way to send and receive money. In fact, most customers at Bookmaker have been using Bitcoin as the main way to make deposits and withdrawals.
Check out BookMaker today and make a Bitcoin deposit.
