Post
Topic
Board Bitcoin Discussion
Re: Hold Bitcoin VS Hold Gold
by
Blitzboy
on 02/07/2023, 20:34:24 UTC
BTC vs Gold, both have advantages and disadvantages, For example: If i am comparing risk then Bitcoin is risky investment if it's volatile, on the other hand Gold is 100% safe i think because there no chance to massive decrease it's price i did not see in the last a couple of years.
If BTC is risky so it's also big profitable investment but gold increases very slowly.


Well, I agree that Bitcoin is a risky investment but the rewards it gives are way better than gold. The volatility of the Bitcoin makes it a good investment for those investors who have mastered the volatility of the crypto-market, on the other hand the ones who hold Gold then they will have to wait for decades to get any good benefits from its low volatility. If someone who invests money into Bitcoin and hold that investment for 2-4 years he/she could profit a lot form the volatility of the market, while the one who holds gold for 2-4 years then there is very low chance of any substantial profits.
Indeed! Many in the financial community want to make analogies between Bitcoin and gold, but this is a bit of a "horse and cart" problem. Bitcoin's extreme volatility may make a savvy investor richer than King Midas. Isn't the element of surprise a big part of the allure? The promise of exponential growth in a short period of time is enough to get anybody excited (with appropriate caution, of course).

However, gold is more like the turtle in this situation. Small but continuous improvements over time characterize this approach. To paraphrase an ancient adage, it is "as sure as gold" in that it is predictable, making it a good way to protect oneself against economic instability. However, the "tortoise" should not be written off just yet. The value of gold has been preserved throughout many decades. Bitcoin? You might say its in its "teenage" years now. It has great promise, but it hasnt been put to the test over the long haul, so it might fail.