Analysts and investors love to hear about the great recession in 2020. Started in 2009, bitcoin is now in its thirteenth year. So, technically, bitcoin is still just a teenager. However, it has been winning many hearts for a long time. It has become one of the most sought-after crypto assets that gives you good returns. If you are starting to trade bitcoin, you should know the importance of using a bitcoin wallet.
When initiated, the price was nothing but zero. From that point, bitcoin slowly moved to 65,000 $ in 2021. Needless to say, it moulded various economic trends. In earlier days, not everyone knew the name of it. However, it has come such a long way that even school children know about cryptocurrencies and want to know more about them.
The most famous debate is about where you should invest your money. – in bitcoin or in the gold asset? Everyone knows that gold is one of the lucrative assets people like investing their money in. The comparison is always underlying the rising trend in bitcoin.
Things to look when investment
Timeframe
Gold has been the dominant factor in the markets for quite a long. in fact, it was a medium of exchange at first, and then, it became an asset to hold. On the other hand, bitcoin is really new in comparison with gold. It was initiated in 2009. Bitcoin is just in its 13th year now, whereas gold is into the usage for thousands of years. So, their time in usage is a key difference between these two.
Utilization
There is no doubt gold has had more usage in history. It is being used, exchanged, and traded for a huge amount of time. So, the number of utilisations is quite vast in gold. This huge utilization has always been helping gold to maintain a balanced or stable value for years and years. Bitcoin, on the other hand, is really new and thus has comparatively few utilisations. Also, some recent incidents made people withdraw their funds. Bitcoin is just 13 years old, which is why it is bound to be volatile. The volatility of the coin confuses the folk if it is a bubble.
Regulation
The regulation around gold is really high. The rules for gold trading or other acts are really of a higher level. Thus, the chances of duplicity are really hard in the case of gold. In fact, one cannot just go here and there with gold. Crossing boundaries or entering a new country with a certain amount of gold will definitely need you to ask for permission first. So, the regulations are quite strong. On the flip side, bitcoin is a decentralized program. It means, there is no centralized program or authority that can fix the regulations for bitcoin. It is backed and operated by the technology called the blockchain. Making it free from all kinds of rules and regulations of governments was one of the primary intentions of Satoshi Nakamoto while he was designing bitcoin.
Which one is rarer?
In the case of rarity, bitcoin has a similarity with gold. In terms of precious metals, gold is rare,e which is why it is costly. Similarly, bitcoin is also rare when it comes to cryptos. And a huge amount of that is already gone with people who died or lost their private keys. It makes bitcoin even rare. So, in the case of rarity, there is not much of a difference.
Which one is the better investment?
There is no straight answer to this point. Rather, you must consider factors like how much money you can invest, how much risk you can take, how much time you can hold your money into the investment, etc.
Wrapping it up !!!
Although bitcoin is really volatile, it shows great potential as well. So, you can always try to trade in case you are aware of its market as well as know trading it. One of the important points that you should consider is that you should read the clauses and conditions of the platform. Know about the transaction fees, withdrawal fees and customer support. All this will eventually help you find the best platform.