When it arrived in 2008; Bitcoin was piloted in a new flanged area of virtual currencies. The top cryptocurrency, BTC, has numerous properties of fiat currency, however with extended distant attributes that could make Bitcoin a suitable anchorage.
The greatest traditional and safe haven option is gold, but nowadays, Bitcoin is also one of the leading havens as per the institutional investors. You can also visit the official website of BitIQ to get a detailed overview of cryptocurrency trading. Below listed a detailed comparison of gold and Bitcoin and which one is a better and safer haven investment asset.
For many decades gold has covered the haven industry, but with the arrival of Bitcoin, the dominance of gold seems to be lower a bit. Launched in the late 2000s, Bitcoin has acquired extensive recognition. Below listed a complete comparison of gold and Bitcoin; one is actual gold, and the second is virtual gold.
Undeniably, it is challenging to steal the safe-haven asset with traditional attributes, but the trading system of gold is very complicated. On the contrary, Bitcoin is straightforward trade, and it is very challenging to corrupt the virtual coin. The cryptocurrency comes with encryption technology, thus making it decentralized. The only concern of Bitcoin investors is bit misplaced security aspects. You might have witnessed many cryptocurrency exchanges stealing incidents. Many cryptocurrency exchanges went offline with holdings of innocent investors and traders—some of the famous exchanges that came public recently announced that they were bankrupt.
Rarity and scarcity are attributes that make Bitcoin and gold popular, valuable and demanding at the same time. In short, rarity is a characteristic found in both gold and bitcoin. The Bitcoin network is built to cut the bitcoin supply limit to half after a certain period.
As per the calculations, the Bitcoin network will unlock the last ever bitcoin unit or Satoshi in 2140. The supply limit of Bitcoin is specific; on the other hand, the supply limit of Bitcoin is indefinite and uncertain. In short, Bitcoin seems to be rarer than gold as companies have discovered that they can extract gold with the help of solar bodies like asteroids.
Baseline usually represents the number of applications a haven asset has in real life. For example, both gold and Bitcoin seem to have numerous real-life applications. However, undeniably gold seems to have more applications than Bitcoin as one can use gold as jewelry; it has great use in construction, machinery, and much other stuff.
However, the baseline value of Bitcoin is also very high. The majority of the citizens from developing countries are devoid of the traditional banking system. Many citizens do not have a credit card or debit card; for such individuals' Bitcoin can be significant. With Bitcoin being an exchange method, individuals can send money using this virtual currency to any corner of the globe for almost zero fees.
Gold seems to be much safer when it comes to a safer haven investment asset. But Bitcoin does not lack gold in terms of safety as the encryption present in Bitcoin prevents counterfeit money, and the currency has much more use in other industries. The only concern of haven investors while picking up Bitcoin is its volatile nature.
Yes, the currency has shown some wild, volatile characters over the past few years. As well as complete volatility, the cryptocurrency has shown itself to be a victim of market fluctuations and price swings. But Bitcoin's invention and release in the global marketplace have activated altcoins' rise. Gold is much less volatile than Bitcoin, but volatility has also turned Bitcoin into a superior investment asset class. In the past few years, thousands of altcoins came live.
The main aim of some of the digital currencies is to offer more stability as of these cryptocurrencies. These coins are popular as Stablecoins. Only two or three popular Stablecoins have acquired traction from investors and traders. The only reason why everyone prefers Stablecoin to execute exchange than cryptocurrencies are high-end stability and lessened volatility. Stablecoin has a definite and very robustly stabilized value.
In short, Bitcoin seems to be a better investment asset than gold.