One of the main appeals with Bitcoin is its decentralised nature. There’s a growing trend towards taking control of your personal finances and having more independence from the authorities.
Banks are now regularly making it difficult for customers to spend their own money. It’s common for transactions to be blocked if a bank doesn’t approve and there’s an increasing feeling that authorities are dictating what we can and can’t do.
With the 2008 bank bail-outs still fresh in the mind, the post-Covid economy suggests high street and central banks are once again vulnerable. But with global debt now at record highs, bailouts may not be offered, leaving savings susceptible to being taken. Bitcoin allows payments outside of the banking system, making overseas payments easy and instant.
Similarly, Governments can increase interest rates and taxation to impact and regulate their own currency and economy, but currently have no control or power over Bitcoin.
For this reason, Bitcoin represents a huge danger to the control and prosperity of the establishment, which is why crypto’s adoption is meeting huge resistance from these institutions.
It’s common knowledge that the threat Bitcoin poses to central banks has motivated them to start developing their own Central Bank Digital Currencies (CDBC) to compete with Bitcoin. The UK, US, China and Euro-region are all several years into development of these CBDCs and plan on launching them in the coming years. If they’re widely adopted, it could spell the end of Bitcoin. But the fact that such ‘centralised’ digital currencies could be used to control how the public spend their money, they are only acting to strengthen the resolve of decentralised crypto supporters.
Clearly gold is a long-established and accepted market, so experiences less resistance from the authorities. It enables the public to take a degree of control of their finances outside of the general banking system.
FAQs
Over the last decade, Bitcoin has been the top-performing asset globally, averaging a mind-blowing 693% annual return. Over the same period, gold has averaged just over 5% annually. Whether you compare Bitcoin to gold or any other asset, Bitcoin easily wins the total return debate.
What is the best type of gold to buy for investment? ›
Ultimately, the best gold type to invest in with prices near all-time highs depends on your financial goals, risk tolerance and how long you plan to hold the investment, says DeMeritt. Physical gold, like gold bars or gold coins, is typically better for long-term investing.
Has Bitcoin outperformed gold? ›
Meanwhile, “Global Markets Investor” commented that “gold has seen one of the best runs in history,” adding that it is up 23% year-to-date beating the S&P 500 gain of 18%. Comparatively, Bitcoin (BTC) has appreciated 37% so far in 2024, despite a 22% decline from its March all-time high.
Is Bitcoin more secure than gold? ›
Both gold and Bitcoin offer value preservation, but their mechanisms and historical data differ significantly. Both assets are seen as hedges against inflation, but gold's historical performance provides a stronger foundation.
Is there a better investment than gold? ›
stocks: Which is the better investment? Stocks have generally performed better than gold over the years, but there can be exceptions.
Why Bitcoin is more valuable than gold? ›
Gold is used mainly in jewelry, but it does have a presence in certain industrial settings. Similarly, Bitcoin's value arises in it being a totally decentralized network with no single entity in charge, thus cutting down transaction costs while sending money to someone across the globe.
What is the safest gold investment? ›
Instead, the average gold investor should consider gold-oriented mutual funds and ETFs, as these securities generally provide the easiest and safest way to invest in gold. Larger investors seeking direct exposure to the price of gold can buy gold directly through bullion.
What is the smartest way to invest in gold? ›
A gold or commodity-focused ETF or mutual fund can be the simplest way to invest in gold without the need to taking physical ownership. The price of a gold ETF, for example, is linked to the price of gold, and investors can buy and sell shares of the ETF like they can a stock.
Which form of physical gold is best for investment? ›
Investment in Physical gold can either be in the form of jewellery, gold coins or gold memorabilia. Normally, jewellery is of 22 carat, while the others are of 24 carat, which is the preferred mode for secondary dealing. Physical gold can be sold in the future at a higher value.
How much is gold worth vs Bitcoin? ›
XAU to BTC
| Amount | Today at 8:15 am |
|---|
| 1 XAU | 0.0440 BTC |
| 5 XAU | 0.22 BTC |
| 10 XAU | 0.44 BTC |
| 50 XAU | 2.20 BTC |
4 more rowsRead on to have your mind blown! According to Cointelegraph, Bitcoin's price has risen a staggering 8,990,000% since the launch of this digital currency 15 years ago! No other asset class comes even remotely close. However, we need to unpack that and understand the risks associated with an asset class like this.
Should I buy Bitcoin or gold? ›
Key Points. Gold's use as a store of value gained popularity in the 1970s when inflation ran rampant. Since the 1970s, gold hasn't kept pace with inflation. Although Bitcoin and gold have similarities, Bitcoin's decentralization, security, and true finite supply make it the superior asset.
Is there a better investment than Bitcoin? ›
A broadly diversified stock portfolio generally presents a safer option than cryptocurrencies because of their intrinsic value and history of delivering solid long-term returns. Cryptocurrencies may hold greater potential for outsized gains, but come with significant risk.
Is there any coin better than Bitcoin? ›
Ether (ETH)
Unlike Bitcoin, Ether's underlying network is far more than just a tool for peer-to-peer payments; the Ethereum blockchain is custom-made for smart contracts and decentralized finance tools, as well as for so-called Web3 applications and the trading of non-fungible tokens, or NFTs.
Will Bitcoin surpass gold? ›
So it'll probably trade to market capitalization above gold." According to Scaramucci, the current market capitalization of gold rests between $15 trillion-$16 trillion, a number that Bitcoin should be able to overtake in roughly a decade.
Is Bitcoin stock to flow better than gold? ›
Stock-to-Flow and Bitcoin
Bitcoin's annual supply increase is roughly 1.7% in 2021, just above gold's rate of 1.6%. Unlike gold, Bitcoin's rate of increase will decrease forever, eventually reaching 0 once Bitcoin's hard cap of 21 million bitcoin is reached.
Is trading gold better than crypto? ›
Gold is an asset which can never go to zero. Bitcoin is a cryptocurrency which is not backed by any asset. The value of bitcoin can easily fluctuate south. Gold is a safe haven when it comes to uncertainties.
