Cryptocurrency, like gold, has a similar impact on investors. They have turned the people from rags to riches, the same as gold. The prices of Bitcoin soar high with time. This creates an opportunity for comparison between both of them. Why not? After all the Bitcoins are accepted as business transactions, the same was done in archaic times with gold. So gold or Bitcoin? Let's find it out here.

Gold vs. Bitcoin: Who wins?

We all are aware of gold; the entire world runs with the help of gold. But they are such powerful and defining metals. On the other hand, the rise of Cryptocurrency is meteoric! So let us make a comparative analysis between both of them. 

Gold

Gold has performed well historically during some economic unrest. This is because the metal has a great ability to keep value steady. Know that investors move from stocks to gold if they experience a recession. 

During the great recessions in the USA as well as the Covid-19 Pandemic, many investors moved into buying gold. Increased demand for the metal increased value. The price of gold went from as high as $1300 in 2019 to that $2100 in the middle of the years 2020 and 2021. 

Bitcoin

Bitcoin is a digital currency launched in 2009. It is the oldest Cryptocurrency and holds the highest percentage in market capitalization. The present share of the Bitcoin market is 38.2147%. 

During the Covid-19 pandemic, when everything went into a veritable shutdown, the price of Bitcoin did not decrease. Then continued to pour capital into the hands of the investor. By April 2021, the price of Bitcoin hit $ 61000. Therefore, the advent of Bitcoin is one of the significant developments in the capital market. 

Regulations

You can not acquire as much gold as you want. You will have certain restrictions with the storage of the metals. You will be answerable to the government. The government regulates this. Moreover, the government also keeps gold reserves in its treasury. You can buy and sell gold in the market, and the government will be able to know it.

The regulation of Bitcoin is made based on the country. For example, El Salvador has ratified Cryptocurrency as a legal tender. But on the other hand, China banned Cryptocurrency in the year 2021. So if you trade on Bitcoin, then no one will be able to know how much you trade. By the way, are you trading Bitcoin? You could do it using Cryptocurrency trading platforms to facilitate Bitcoin trading and investment. To learn more, click here. 

Usage and Utility

Gold, since antiquity, has been a means of exchange. The metal is not used extensively across different industries. However, many products are made with the help of gold. 

On the other hand, if you consider Bitcoin, the utility or usage is quite limited. This is because Cryptos are virtual assets, and they are used as a mode of investment or in buying and selling assets. Therefore, Bitcoin usage is quite limited compared to that of gold.

Arguments in Favour of Cryptos

There are a few arguments that you can produce in favor of Bitcoin against that of Gold. Firstly goldGold does not support any kind of storage option available in the digital world. But on the other hand, Bitcoins are digital assets. Therefore, being intangible, they are safer compared to gold. 

Another argument (though logically not so compelling) is that gold can not be traded easily; you can not take it anywhere. But if you use Bitcoin, you can do it easily with just a few fingertips.

The third argument is that Bitcoin has more adoption compared to that gold. Around 47 million people trade in Cryptocurrency, which is quite big compared to Cryptocurrency. So You can trade on Bitcoin as they are the future.