Investment trends come and go, but cryptocurrency appears to have developed some staying power. Retailers are even accepting forms of this digital currency as point-of-sale payments. It leads one to wonder if maybe it’s time to go all-in with crypto.
Of course, it’s also become difficult to not take note of gold’s meteoric rise. With its value up more than 50% between 2015 and 2020, it’s obvious that this precious metal is on its own run. This leaves many investors asking, “should I invest in gold or cryptocurrency?”
Everyone’s investment needs are different, so it’s difficult to pigeonhole people’s ideal market decisions into a single answer. After reading the following guide, though, you’ll be far more prepared to decide whether investing in gold or cryptocurrency is right for you.
Anyone who attempts to count the number of investment options available would have a never-ending task on their hands. This raises an important question: Why is everyone so focused on gold and cryptocurrency right now?
Sure, you could look at the risks and rewards of both assets and decide based on that alone. When you’re putting your money into something, though, it’s better if you’re fully informed on what’s going on. After reading the following section, you will be.
One need only look at the live gold price to understand why there’s currently so much buzz around the precious metal. While its value can fluctuate over days, weeks, months, and especially years, there’s no denying that an upward trend has been prevalent.
We can go back to the 1950s and see a price per ounce of around $250, but it’s far more impressive to see the $2,000 mark that was reached in 2020. Gold has always held value to the human population, but it’s quite apparent that it’s reaching new heights almost every year.
On top of that, the Federal Reserve recently printed trillions of dollars to help the economy. This essentially devalues every existing dollar, so people are more committed now to hedging against a poor economy & currency depreciation than ever before.
Ever since Bitcoin exploded in popularity – and value – cryptocurrency has been on the tip of everyone’s tongue. Anyone who bought $1,000 worth of Bitcoin in 2013 was sitting on a $400,000 nest egg by 2017. And in the world of crypto, Bitcoin wasn’t the only success story.
Dogecoin became extremely popular when millions of retail investors entered the market during the COVID-19 pandemic. A $1,000 investment in this digital currency in May 2020 was worth $360,000 in May 2021.
These successes have put all the following cryptocurrencies on people’s radars:
Investment success stories can thrust any asset into the international narrative. And while insanely high profits may seem like a reason to choose cryptocurrency over gold, this is only a tiny part of the story.
There are pros and cons to getting involved in both these investments. Once you recognize the risks and rewards of each, you’ll be able to make a more informed decision. And although no one can predict the future, you’ll probably walk away with a yellow-tinted metal in mind.
Choosing to invest in gold or cryptocurrency requires an in-depth look at both assets. With the former, there are major considerations to account for. For instance, buying gold bullion bars differs greatly from buying gold collectible coins.
The conversation on different types of gold investments, though, is better saved for our Gold Buying Guide. For now, simply knowing the general benefits and disadvantages of investing in gold will get you on the right track.
Before you start purchasing gold with your Bitcoin profits, take a moment to learn a bit more about cryptocurrency. There’s a chance it won’t change your mind, but becoming a more informed investor is always the right move.
No one can be certain that a particular investment strategy will pay off over others. The best move on your end will rely on your specific goals. If you’re looking for a hedge against economic downturn with a proven history extending back thousands of years, the choice is obvious.
If you’re thinking of investing in gold and cryptocurrency, you’ve already learned a little about diversification. But with popular coins trading at insane levels – and sometimes fluctuating by tens of thousands of dollars – investing a small amount into a new crypto coin might be a better option.
It’s easy to make a case for both sides when it comes to investing in gold or cryptocurrency. If you’re looking for proven historical success, though, there’s really no competition. Gold has held value for civilizations stretching back thousands of years. Crypto is the new kid on the block.
Not that people can’t make money off digital currency – we’ve all seen it happen – but the volatility alone is enough to scare off most investors. And if you’ve accrued some level of cryptocurrency and are ready to cash out by purchasing gold, you’re in luck.
Take a look at all the gold investment types we offer at Silver Gold Bull, and when you’re ready to check out, you’ll see that cryptocurrency payments are accepted! And if you’ve never ventured into the world of digital currency, rest easy knowing that we accept all traditional forms of payment as well.
Choosing between gold and cryptocurrency is a personal decision, but if you’re ready to get out of crypto before a potential bubble burst, few assets can achieve the value-storing power of gold.
At Silver Gold Bull, our content is researched, written, edited and reviewed by a team of financial experts with decades of experience in the precious metals industry. With each piece we write, we bring our own personal experience and expertise, while combining that with today's leading research and data. Our ultimate goal is to help extend our award-winning customer service to our educational content. Ultimately, we want you to feel comfortable and informed when making investment decisions, regardless of whether that is with us or not. Thank you for being part of the Silver Gold Bull community. We really appreciate and value your trust in us.
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