Surging Bitcoin Prices in India Is Giving Tough Competition to Everyone’s Favorite Investment – GOLD!
Gold has been the safest investment option, especially during times of uncertainty. Investors usually counter the volatility of stock markets by investing in a safe haven like gold. Gold generally remains unaffected by steep falls in stock prices, and therefore, it is often a safe and long-term investment strategy. It is a rare commodity because there is a definitive quantity available in the world. Its usage is seen in various consumer goods like jewelry. While a company can always issue new shares, disrupting the market, gold cannot be manufactured, which is why its prices don’t drop when the market does.
Gold can be compared to the most experienced person in the room. Since it’s rare and tangible and has proved its worth over many years, everyone trusts it. But investors have noticed the flatlining of gold’s growth in recent times.
Bitcoin or any other cryptocurrency is like the smart, new intern, full of potential and energy.
But Does Bitcoin Shine Brighter than Gold?
Like gold, there is a limited amount of Bitcoin, which makes it rare. There will only be 21 million Bitcoins circulating in the market at any given time. But, just like gold, the positive performance of Bitcoin in comparison to the declining value of other stocks gave it the tag of being ‘digital gold’.
If you had chosen to buy Bitcoin in early 2021, the value of your investment would be nearly two times today. This famous cryptocurrency has grown more than five times since early 2020! This steep rise is after considering the massive volatility that Bitcoin showed in such a short span. Bitcoin lives up to the true essence of the term high risk, high rewards.
We Covered the High Rewards, but Investors Should Recognize the Risks Before Investing in Digital Gold.
Being a decentralized cryptocurrency, Bitcoin, like other cryptocurrencies, is not regulated by any central bank or federal government. Stringent legislation with the onset of new laws could always affect Bitcoin in the future.
Bitcoin is also highly volatile and may not be favorable to those with a low-risk appetite. For example, the price of one bitcoin in India went from 21.38 lakhs in January 2021 to 43.70 lakh per bitcoin in March 2021. It fell to 22.20 lakh in July, washing out more of the 2021 earnings but swiftly rose back up. One Bitcoin’s price in India is currently (in October 2021) is above 46.60 lakhs.
Comparing Gold and Bitcoin directly will result in some more striking similarities. Both gold and Bitcoin are highly transparent and secure. They are rare and can also be considered as a liquid commodity in your portfolio.
The variations between the two are also equally interesting to note. The return on investment is unarguably higher in Bitcoins. Bitcoin’s growth is almost 100 times that of gold. It is projected that by 2030, Bitcoin’s market cap will exceed the market cap of gold!
If you want to leverage the lucrative cryptocurrency market, choose a safe and hassle-free best cryptocurrency exchange, and don’t forget to do your research! The best cryptocurrency exchange platforms in India like ZebPay make cryptocurrency transactions extremely easy. You can also track the movement of any cryptocurrency on a real-time basis and make smart investments that generate high returns.
Seasoned investors are shifting from gold to Bitcoin for a more versatile portfolio that also adds to their ROIs. In addition, the rapid growth of crypto makes it a viable and popular investment option with a bright future. Stay tuned for more updates from the crypto world!