Is Bitcoin The New Gold?
Cryptocurrency is a term you will often get to hear nowadays. The digital currency has taken over a range of financial transactions and is continued to be loved by investors based on the high returns it seemingly offers. But does this mean that cryptocurrency is going to be a great asset for you to invest in?
Well, there have been countless talks about how Bitcoin, one of the most renowned cryptocurrencies, can pass off as the next gold. But how true can this statement be? Here, we dive into the details of how cryptocurrency works, whether it is a safe investment, and whether it will be able to sustain a financial crisis in the long run.
The Rage Of Cryptocurrency
Cryptocurrency has seen a massive surge in investments over the last few years. While initially it was mostly Bitcoin that was present, but overtime there have been many more cryptocurrencies entering into the market. It is normal to find a wide range of these to choose from.
You will find people a little more invested in the trading values of cryptocurrencies, more importantly Bitcoin. With one Bitcoin having a value of about USD $39,265, there is really no denying that people want in on this asset. Not only are people interested in getting their hands on cryptocurrencies, but there have been other things in motion as well.
For instance, you will find that the craze of cryptocurrencies has led to the creation of crypto art and more. Thus, people are finding themselves buying a multitude of wall art and more that revolve around the concept of cryptocurrency. If you wish to indulge in something similar, then you can get your hands on a Bitcoin wall art easily. There are plenty of variations that you will find when it comes to this, such as this crypto art canvas prints. There is no denying that there is a lot that can be done with the idea of cryptocurrency. But, what value does it really hold? Is it the next gold?
Is Bitcoin The Next Gold?
When it comes to Bitcoin, you must know that many experts suggest that it is somewhat similar to gold. It is perhaps far-fetched to say that it can be treated exactly as gold because of the tangibility that gold possesses. For instance, there are countless arguments that state that even though Bitcoin is reaching new heights, it can only be held on to for a decade and not more. With gold, it is bound to stay with you for a long while and offer you more value.
That is not all. There are countless changes that go around in the financial and IT world. While Bitcoin is the latest variation of it, there is a possibility that there might be something else in the future that may come with better value than Bitcoin. Thus, holding on to Bitcoin for the future, as you would gold, is perhaps not the best option and not advised by experts either.
Bitcoin And It’s Dependence On The Internet
As you must know, Bitcoin is heavily dependent on the internet to flourish. Thus, making it difficult to see it progress when trying times come about. There are instances that cannot be overlooked when assessing the value of Bitcoin. Say, there is a financial apocalypse where everything is ruined, would Bitcoin be able to work without the possibility of internet? Not likely. But will you still be able to make use of gold? Yes, you will.
There is a major difference when it comes to these things. So, you should know that while Bitcoin proves to be highly valuable in terms of its trading and use currently, there is a major difference when it comes to labeling it as gold. The two are not the same thing.
Will Bitcoin Sustain A Financial Crisis?
As we have seen with previous financial crisis, when one particular asset seemingly exceeds normal ranges of value without having any backing, the bubble bursts and there is chaos everywhere. It is important to note that the store of value for Bitcoin is not the ideal for someone to invest in. In case of a financial crunch, there will be a multitude of losses that will cause a ripple effect across the world.
When it comes to Bitcoin, its dependence on the internet and technology makes it prone to falter in case of discrepancies in these systems. When experts were asked about what they would rather invest in, gold or Bitcoin, the answer was unanimous that gold would be the better option based on its historical value.
How Can You Protect Your Assets From Financial Crisis?
If you’re concerned about how things might be like in the future and you wish to ensure that you protect your assets and cryptocurrencies in the best possible manner, then you should know that basics of doing do. One of the main things that you should be focusing on is to secure a wallet. Don’t go for digital currency exchanges if you are afraid of losing out in case of any crisis. Securing a wallet is recommended by experts involved in cryptocurrency as it allows them to have a physical storage for their assets.
One of the more prominent issues of Bitcoin is the possibility of hacking. You should know that securing your wallet is the best thing that you must do to keep your investment safe. As opposed to a financial crisis, the possibility of this happening is much more common. So, ensure that you’re taking up the right measures to keep your investment safe from criminal activities.
Another thing that can be done is to get insured for the assets that you have. In case of any issues, you can rest assured that you won’t have to worry about losing out every asset of yours. Federal insurance is what you should be searching for when it comes to protecting your assets. Not only this, you should know that you need to have an emergency fund always prepared for a rainyday.
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