For hundreds of years, gold has been a popular place to store one's wealth, and this continues to be the case. However, the Internet has produced its own competitor for the storage of wealth in the form of the Bitcoin. While it never hurts to diversify your portfolio, there are several reasons why gold is a better investment than Bitcoins.
Gold Is An Established Brand
Gold is the most established brand and has had greater stability than any other investment. In contrast, Bitcoin is a newer investment option and is not as established as a brand. This means that you may find it more difficult to liquidate your Bitcoins.
The Value Of Bitcoins Won't Continue To Increase
The value of Bitcoins has grown more rapidly than gold overall. However, much of this growth is attributed primarily to the fact that Bitcoins are a new investment that has received attention from the press. This has lead to more investors adding Bitcoins to their portfolios. The long-term stability of Bitcoins as an investment is less established than that of gold. Gold has currently outperformed Bitcoins, with the number of Bitcoins that can be purchased by gold increasing as of recently.
You'll Be Tempted To Spend Your Bitcoins
In most states, you cannot make a purchase using gold. While this might seem like an inconvenience, it also encourages you to save your gold rather than using it to make frivolous purchases. Bitcoins, in contrast, can quickly be used to purchase services from several online vendors. It can also be difficult to determine whether you are receiving a good deal when purchasing with a Bitcoin, since its value fluctuates.
Bitcoins Are More Subject To Inflation
Bitcoins can be subject to inflation because there are still many Bitcoins that can be minted. Only about half of the total number of Bitcoins that can possibly be mined have been mined. While more gold might be discovered in the future, it is likely that the total amount of gold in the world is more fixed due to the number of gold reserves that have been exhausted.
Several Countries Have Banned Bitcoins
While you can purchase gold in almost every country, there are several countries that have banned or are considering banning Bitcoin. Therefore, if you own Bitcoin in a county that bans it, you may be forced to sell it at a time when it will be worth less, since several other investors will also be unloading their Bitcoins. Until this new currency has been tested, it is better to stick with gold. Visit resources like http://www.webuygoldportlandvancouver.com to learn more.
Share23 November 2015
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