Ever since the emergence of cryptocurrency, there has been a debate about its credibility as a means of investment. People still doubt its worth despite large scale adoption, increased awareness, and of course impressive price rise. Especially, when it comes to comparing cryptocurrency to gold, people believe gold to be far better long-term investment. But that is doesn’t mean cryptocurrency lies on low performing scale.
To know why the cryptocurrency is eventually a better investment option than gold, let us measure them on different principles:
- Universal and censorship-resistant: This is one of the biggest benefits Cryptocurrencies enjoys over gold. It is neither created nor governed by any financial institutions. It is non-sovereign and since it is censorship resistant it cannot be confiscated, reversed, or seized by anyone. Also, the Bitcoin payments cannot be restricted by any individual, organization, or government. While the same is not true with gold, in times of national crises respective governments hold the rights to confiscate your gold
- Growth:Cryptocurrency’s growth is not restricted to the single territory; it is universal and hence borderless. As more and more use cryptocurrency as their future money, they are likely to convert their hard-earned paper currency into digital currency. And the more people resort to this, the higher the prices of cryptocurrency will get. The profits alone fetched through holding and buying cryptocurrency are immensely good. Thus, considering the fact, opting to exchange USD to ethor any other digital currency is a pretty good idea.
- Convenience of Use: Electronic payment is the way to the future. It will disrupt the global payment system and emerge as a prominent means of conducting transactions. Irrespective of the payment mode, cryptocurrencies can benefit you with their adaptability to different payment transfer systems. Additionally, cryptocurrency has a flexible nature it can efficaciously adapt to the changing needs of the customer. On the other hand, gold is a commodity exchanging, or using it a currency is not a viable option.
- Supply: Since gold exists in the physical form its supply is limited. However, digital currency is immune to this issue. They do not have a limited supply and can be issued (withdrawn) depending on the market demands. Furthermore, gold as an investment is a liability. Despite spending on its making and opting for a locker facility it cannot escape inflation. While the same does not apply to cryptocurrency investment.
- Easy maintenance: Cryptocurrencies are a far better investment than gold. They are completely digital and facilitate easy transfer and purchase. You can buy Ethereum with a credit cardand easily transfer it to another user. Plus, you can get it exchanged for USD value. Additionally, gold can be easily faked and destroyed. It does not assure you durability as a cryptos blockchain system.
Takeaway
From an investment perspective, cryptocurrency has the potential to generate big payoffs down the road. In the coming decades, a lot of people may opt to invest in cryptocurrencies to diversify their holdings. Therefore, it may be not so fruitful to invest in precious metals anymore.