Bitcoin and Gold in Waves: Consider These Things Before Investing

Synopsis: Now gold and bitcoin are both moving together. People are losing trust in the dollar and US rules, so they look for other ways. Gold is still safe and strong in any crisis, but bitcoin is up and down. I feel gold can take a small part in our savings plan, maybe 10 to 15 percent. Crypto is better to stay away, too risky and no sure base.

Before You Buy Bitcoin or Gold, Read This First

Yes, the top Cryptocurrency, Bitcoin, is also making waves along with gold. Both assets have benefited from the decline in confidence in US policies and the dollar globally. However, in terms of investment, gold and Bitcoin are not assets that can be tied to the same thread. Although gold is a suitable asset for portfolio diversification, Bitcoin cannot be seen in the same way.

Gold has stability in crises and the support of central banks. Bitcoin is based on speculation and high volatility. The validity of Bitcoin as an investment asset is still a matter of debate. Up to 10-15 percent of the portfolio can be included in gold. At the same time, it is better to avoid investing in cryptocurrencies.

Gold Vs Bitcoin

Gold has historically been important as an investment asset. That is why gold has become an indispensable asset in the portfolio. History has shown that gold can generate profits when economies are in crisis. That is why central banks are cautious about holding gold.

You can ensure a share of up to 15 percent in the portfolio in gold. It will be useful to get risk-adjusted gains in the long term.

Gold is seen to provide stable gains when the stock market declines.

Although there is no industrial demand, central banks and buyers of jewelry maintain the demand for gold.

Bitcoin

Whether Bitcoin is an investment asset is still a matter of debate.

It has no legal validity in any country except El Salvador.

The value of the currency is based on the 'collective trust' of investors.

Cryptocurrency is a highly volatile one. Especially Bitcoin. Therefore, the risk of loss is greater than the gain.

General Trend

The recent rise of gold and Bitcoin can be traced to common global reasons. The main reason is the decline in trust in American policies and the US dollar.

But their existence and structure are different. The asset gold has historical value. Therefore, it can be said that gold is an asset that has survived the times. Central banks around the world are withdrawing investments in US Treasuries and buying up gold in large quantities. This is a strong foundation for the value of gold.

However, Bitcoin has less historical relevance. The basis of Bitcoin is private invention and investor enthusiasm.

Most wealth managers in India still do not consider Bitcoin as a legitimate investment asset. However, large fund houses like BackRock in the US have launched Bitcoin Exchange Traded Funds (ETFs).

When considering investment opportunities, you can ensure a share in gold. It will be useful for asset diversification. Investment in cryptocurrencies can be avoided. It would be appropriate for individuals to make decisions in this regard, considering their risk-taking capacity and long-term potential for gain.