Buz Investors Gold vs Bitcoin Bitcoin prices have officially outpaced gold prices per ounce for the first time in the currency’s history. With the bitcoin price in 2017 trading above gold prices, you have a day that cryptocurrency lovers have longed for and bullion bulls have long feared. Indeed, the gold vs Bitcoin rivalry (at least in the media’s eyes) is only poised to become more heated as the year goes on. So is Bitcoin the new gold? And what’s next for the Bitcoin value 2017? Should you invest in Bitcoin or gold?
First, let’s dispense with some of the misconceptions between gold vs Bitcoin 2017.
Bitcoin is not yet a true hedge asset. Why not? Because it simply doesn’t have the stability to protect you from extreme fluctuations. Gold, on the other hand, is still far more stable, at least compared to Bitcoin. The volatility of Bitcoin might make it a more prized investment, but in terms of a place to stash your assets in order to protect them from economic downturns or currency value-loss, Bitcoin is not an entirely safe bet.
Consider that in the past 12 months, gold has run the range of mid-$1,300s per ounce down to just above $1,100.
Bitcoin, on the other hand, in the same time period, shot up from $400.00 per unit to $1,130 at the beginning of this year, then promptly collapsed to the $800.00s, only to shoot back up to its current all-time high. Which is to say that making a Bitcoin price prediction can be a little trickier than, say, sticking to gold.
Gold has had millennia to establish itself as a worldwide commodity, which only strengthens its place in the global economy. Bitcoin, meanwhile, is not only new and potentially confusing to investors, but it’s also not nearly as secure. If you buy an ounce of gold and put it in a safe, barring a physical assault on said safe, your asset isn’t going anywhere. In that regard, the precious metal has a leg up on the newcomer in the gold vs. Bitcoin 2017 debate.
What makes Bitcoin theft even more damning is that there is little recourse available to victims of a theft. One of Bitcoin’s big selling points is the blockchain, a database that anonymously records every single Bitcoin interaction. All BTC movements are final. While this appeals to a great many people’s sense of privacy and security, others may be scared off by the potentially disastrous outcome of a theft like that which played out in Kenna’s case.
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