Gold VS Crypto: Why is the precious metal a more reliable asset?

Gold VS Crypto: Why is the precious metal a more reliable asset?


When choosing an investment object, a modern person is faced with a difficult choice: on the one hand, there are classic investment options (gold, securities, real estate), and on the other hand, the whole world is buzzing with excitement due to the growing popularity of cryptocurrency. And often supporters of these types of investment are faced with each other in serious battles.

At Golden Way, we as nobody else know the specifics of the gold market, and at the same time we monitor modern investment technologies. Therefore, for our readers, we have prepared a detailed overview of a battle: cryptocurrency against gold. Which one would win?

What do gold and cryptocurrency have in common?

Despite the fact that these objects of investment often oppose each other (completely virtual value - which is cryptocurrency - against material value - which is gold), they have common features:

  • both are independent of governments;
  • both are limited in amount,
  • both are considered valuable by consumers.

Like cryptocurrency, gold is finite, and it is limited both by the resources of our planet and the possibilities of gold mining technologies. At the same time, all governments do not have a distinct influence on prices of gold or crypts. But there is also another kind of interdependence: today, gold in macroeconomics is still having the priority, because it is used to maintain the economies of all countries. Gold can be used as the equivalent of any currency, central banks of all countries store its strategic reserve in it. And yet you can’t say that about cryptocurrency.

And what about other factors for comparison?

First of all, let's take a look at it from the perspective of stability. Crypto rates often become a real shock for holders of such assets: the crypt market is experiencing ups and downs, and the price of the Bitcoin can reach both a record high and fall sharply. Gold in this respect is much more stable: sharp fluctuations of prices did not happen for decades, moreover, in the crisis conditions the price of gold is only increasing.

The convertibility of these assets is also varied. You can, of course, make payments with a cryptocurrency on many online resources, exchange it to other currencies, but if the Internet is off, all your savings will remain in virtuality, while the world outside is real. Gold, on the contrary, is a tangible asset, and you can store it, keep it in a security box or a storage vault. Of course, you cannot pay for something directly with gold today, but it can be easily sold in any bank, a jewelry store or even in a virtual exchanger, and receive money to your bank account.

It is still difficult to say how the cryptocurrency will behave in the long run: will it become cheaper, will its emission increase or will it fully replace fiat money? But one thing is clear: gold will be valuable for a very long time, since in addition to its economic value, it is also highly in demand for industrial purposes. And this expands the possibilities of gold holders.

And the last important factor is the behavior of investors during the crisis. Recent years have shown that gold is a perfect investment option in a crisis. Trust in this metal increases with the occurrence of crisis situations, since gold is considered an attribute of stability.

If you want to invest in a real, convertible and at the same time a continuously valuable asset, gold is exactly your choice. Want to know more about investing in gold? - Golden Way is at your service. Here you can not only buy gold bars directly from the manufacturer, but also receive a priceless baggage of knowledge, accessible only to our company partners.