Digital technology had a huge impact on currency exchange in the virtual world with the introduction of Bitcoin in January 2009. Bitcoin is once again making headlines by splitting off into two worlds: bitcoins and bitcoin cash. With this recent offering hitting the market on Tuesday, August 1, 2017, many seasoned and rookie investors are still asking and debating amongst themselves, “Is gold or bitcoin ultimately the best investment for me?”
When bitcoins hit the market in January 2009, most people were still unsure as to what exactly a bitcoin was. This peer-to-peer digital currency is stored in a virtual wallet and exchanged through modern day technology. No physical presence has been established until very recently, and the bitcoin's lack of tangibility was off-putting to many of its skeptics. Yet the cryptocurrency has one massive factor going for it: its supply level is fixed, allowing for complete transparency. Any fears of inflation and devaluing are put to rest by this single factor.
Gold, on the other hand, is inarguably the most consistent form of currency and trade standard throughout history. Documents from ancient Rome cite payments made in the element and Christopher Columbus was sent in search of gold, among other commodities, by King Ferdinand II and Queen Isabella I. To this day, gold remains the standard by which the world markets trade. The likelihood of gold fading from trade, currency, and a diversifying investment altogether is overwhelmingly unlikely.
Still, the question begs to be answered: “Which is the wiser investment, gold or bitcoin?”
The answer to such a question cannot be given in a blanketed statement for the general populace. While gold has the proven history and staying power, bitcoins are also rising in popularity as safe house for smaller investments and daily transactions. Gold has remained a staple in the world of trade for centuries, and though there may fluctuations in price per ounce, the element safely makes a comeback each time.
The safest route to follow when seeking this answer is to consult with your financial advisor. These professionals are trained to put each client's unique needs first and after careful analysis, determine if the investor’s financial state warrants diversifying their portfolio with bitcoins. Additionally, they can recommend what percent, if any, of the investor’s financial portfolio should be allocated towards bitcoins or gold.
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