Is Bitcoin a Better Investment Than Gold?

Investing is always an interesting topic, especially when we compare classic assets like gold with new digital assets like Bitcoin.

Many people are starting to wonder, is Bitcoin a better investment than gold? This question arises because both are known as stores of value that can protect wealth in times of uncertainty.

In this article, we'll discuss the history, advantages, and disadvantages of each asset class so you can better understand it before making a decision. Read on to learn more!

Gold: The Ultimate Store of Value

Gold has been used as a store of value for thousands of years. Its scarcity, durability, portability, divisibility, and social consensus make it superior to other assets such as silver or land.

However, gold also has its drawbacks: high storage costs, the risk of government confiscation, and difficulties in buying and selling during times of crisis.

Additionally, gold is difficult to “digitize,” meaning it cannot be sent to friends or business partners via digital wallets.

Read Also: China's Yuan Stablecoin: A Strategy to Counter US Dollar Dominance

Bitcoin: “Digital Gold” in the Modern Era

Bitcoin was created in 2009 by Satoshi Nakamoto. With a limited supply of 21 million coins, Bitcoin has scarcity characteristics similar to gold.

The difference is that Bitcoin is more durable because it's a digital asset, more easily divisible into smaller units, and more portable. Sending billions of rupiah worth of Bitcoin can be done via the blockchain network in just minutes, without the need to carry heavy physical items.

Following are Bitcoin performance than gold:

- Since 2010, Bitcoin's annual return has averaged 167%, far exceeding gold.

- Bitcoin's market capitalization now surpasses global silver and approaches the value of the world's largest companies.

- Many important figures such as Larry Fink (BlackRock), Elon Musk, and even government officials, have begun to support Bitcoin as “digital gold.”

Read Also: 4 Meme Coins with the Highest Market Cap: DOGE, SHIB, PEPE, PENGU

The downside of Gold and Bitcoin

Other than the advantages mentioned above, here are some of the weaknesses of gold and Bitcoin: 

Gold:

1. Storage Costs: Gold requires a safe, insurance, and transportation costs.

2. Risk of Confiscation: The government could carry out a takeover as happened in the US in 1933.

3. Less Flexible: Difficult to use in modern transactions and cannot be sent instantly.

Bitcoin:

1. High Volatility: Bitcoin prices can fluctuate sharply in a short period of time.

2. Regulations are not yet stable: Government regulations vary from country to country.

3. Adoption Still Early: Only about 2.5% of internet users own Bitcoin.

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How to Start Investing in Bitcoin Safely

NAh, for those of you who are interested in investingBitcoin, here's how to get started safely:

1. Determine the Investment Period: Avoid trying to guess the market. Use long-term strategies like dollar-cost averaging.

2. Allocate According to Risk Profile: Start with 5% of your total net worth, similar to the gold portion in a traditional portfolio.

3. Use a Trusted Platform: Choose a licensed and regulated crypto exchange and complete KYC verification before purchasing.

4. Store in a Secure Wallet: Consider a hardware wallet or non-custodial wallet for added security.

5. Self-Education: Learn how blockchain works, security risks, and market trends before making any investment.

Read Also: Polygon Hard Fork: A Solution to Overcome Transaction Bugs

Conclusion

So, is Bitcoin a better investment than gold? The answer depends on your goals and risk tolerance.

Gold remains superior in long-term stability and has been tested for thousands of years, while Bitcoin offers extraordinary growth potential and ease of transactions in the digital age.

A combination of the two could be the best strategy for preserving wealth and maximizing opportunities. So, which would you choose: gold or Bitcoin?

How to Buy Crypto on Bittime

Want to trade sell and buy Bitcoins and easy crypto investing? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is secure and fast.

Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately purchase your favorite digital assets!

Check the course BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles on Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

FAQ

Can Bitcoin really replace gold?

Not necessarily. Bitcoin has potential, but its adoption is still in its early stages.

Is investing in Bitcoin riskier than gold?

Yes, Bitcoin's volatility is higher so the risks are also greater.

Is Bitcoin suitable for beginner investors?

Suitable if investors are ready to learn the risks and invest gradually.

What is the ideal percentage of a portfolio for Bitcoin?

For starters, around 5% of your total net worth could be a safe bet.

Which is better in the long run?

Both have a role: gold for stability, Bitcoin for its huge future growth potential.