Bitcoin or Gold – which one is a more suitable long-term investment?

The past two decades have proven Gold to be a valuable asset in the financial market until 2021 came along. Gold suffered a nosedive of 9% while other commodities grew. Let's demystify this concept through this article.
Bitcoin or Gold?

Gold has been around for thousands of years and is one of the most stable and reliable assets. A majority of people still cling to Gold as a more reliable source because it has stood the test of time. However, there is no proof that Bitcoin would survive a financial crisis such as the Great Depression, but it has managed to prove itself significant since its advent in 2009, after an actual financial crisis.

The value of gold dialing down

Gold might have fluctuated in the short term, but its value has remained steady over time. Gold prices are subject to inflation, which makes it a good hedge investment. The rise of fiat currencies is inversely proportional to that of prices, but the value of Gold increases when prices rise.

One of the largest investors of gold globally, India, has also recorded an enormous increase in the growth of its Bitcoin industry. Thanks to cryptocurrency exchange platforms on the internet, traders can now invest in cryptocurrencies from the comfort of their homes, which leads to the question:

 “Is cryptocurrency the future of investment?”

Bitcoin – Gold’s Digital Counterpart

Bitcoin is considered the most valuable cryptocurrency in the world today. The cryptocurrency market is open for trade 24 hours a day, seven days a week, allowing people to exchange digital products all-round the clock. Conversely, the stock market is only open for trade for five working days from 9:30 a.m. to 4:00 p.m. EST.

In addition, Bitcoin has a finite supply, indicating the maximum amount of Bitcoin in circulation cannot exceed 21 million at any given time. So, if you place a bet on Bitcoin, and it turns out to be positive, Bitcoin’s value will only increase over time.

If you’re looking to invest in of the two, let’s take a look at a few comparisons between the two:

1.    Rarity: Bitcoin and Gold are both rare assets. By 2140 (in approximately 120 years), all 21 million Bitcoins would be in circulation thanks to the Bitcoin protocol that specifies that the last final Bitcoin will not be released until 2140. While we know how many Bitcoins are available, no one can tell how much gold will be mined by then, although there are investigations that report the possibility of mining gold from asteroids in the coming years.

2.    Regulation: in the early days, the trading, weighing, and management systems made it difficult to manipulate or make counterfeit Gold. Today, the encrypted, decentralized system and its advanced algorithms make Bitcoin one of the most secure trading assets globally, which is why countries like the Central African Republic have begun adopting it as legal tender.

3.    Value: Gold has been to have significant baseline values ranging from jewelry, electronics, dentistry, and more. On the other hand, Bitcoin has been shown to have remarkable intrinsic qualities, asides from the impact of blockchain technology.

4.    Volatility: Based on 2021 statistics, Bitcoin started the year at $ 32,222, rose to a high of $69,000, and closed the year at $46,211. Gold started the year at $1,943 per ounce, dropped to a low of $1,683, and ended the year at $1,805.

 Is Bitcoin a better investment than Gold?

The answer lies in risk tolerance, capital, and investment strategy. Bitcoin is highly volatile compared to Gold. So, if you have a strong risk appetite, Bitcoin could give you a good run. But suppose you’re looking for an asset that can move in and out of the market in a relatively short period of time; you should consider Gold as a better option since it is a more liquid asset that allows you to switch portfolios whenever the market fluctuates.

If you’re more interested in digital asset trading, you can find Bitcoin and hundreds of other cryptocurrencies on Your Friendly Crypto Exchange, a safe, reliable and complete trading ecosystem. Register now on IXFI to discover the possibilities. 

Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.

Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.

Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.


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