Should You Buy Gold Or Bitcoin?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 22, 2020
In the past year or so, many analysts and others in the world of economics have predicted a recession. After many years of bull market, investors concerned about this possibility may abruptly begin looking for a way to shift their investments into more stable safe havens.
The traditional move would be to hedge against stock volatility with gold. This has proven an effective method in the past, but a newer alternative is challenging the old-school safe-haven. Launched in 2009, bitcoin ushered in a new era of digital currencies. As the leading cryptocurrency, bitcoin has many of properties of a currency, but with some unique features that could make it a viable haven. Ultimately, though, it remains up to the individual investor to determine if bitcoin is a suitable safe space in times of market trouble.
Below, we'll compare gold and bitcoin as safe haven options.
Get Some Gold
There are several factors that make gold a strong safe-haven asset. It’s valuable as a material for consumer goods such as jewelry and electronics, and it is scarce. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed.
Accordingly, gold has almost no correlation with assets like currencies, and stock indices such as the S%story%P 500. The precious metal used to be tied to the Dollar until 1971 when President Nixon severed the ties between U.S. currency and gold as a base. Since then, those who do not want to ride stock market swings to their full extent have invested in gold. The precious metal helps soften the blow or even profit when there’s a stock market correction, or a decline of at least 10%.
Gold usually performs well during corrections because even if it doesn’t necessarily rise, an asset that remains static while others decline is quite useful as a hedge. Plus, as more people flee stocks and invest in gold, the price rises accordingly.
Bitcoin Bursts onto the Scene
Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. In fact, many have called bitcoin “digital gold” in the past due to its weak relationship with all other assets—stocks especially. Market participants may remember in 2017 when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time.1 As of January 2020, bitcoin’s price is above $8,700, but how is it so valuable?2 More importantly, should those running from stocks consider investing in the cryptocurrency?
Like gold, there is a limited amount of bitcoin. Satoshi Nakamoto, the pseudonymous creator of bitcoin, limited the total supply to 21 million tokens. Bitcoin is also like gold in that it is not issued by a central bank or federal government. As a decentralized cryptocurrency, bitcoin is generated by the collective computing power of "miners," individuals and pools of people working to verify transactions which take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins. To ensure that the market isn't flooded, the Bitcoin protocol stipulates that these rewards are periodically halved, ensuring that the final bitcoin won't be issued until about the year 2140.
Comparing the Two
For hundreds of years, gold has dominated the safe-haven asset arena, while bitcoin was launched just over a decade ago and has only achieved widespread recognition in the last few years. Below, we'll compare these two investment options head-to-head:
1. Transparency, Safety, Legality
Gold’s established system for trading, weighing and tracking is pristine. It’s very hard to steal it, to pass off fake gold, or to otherwise corrupt the metal. Bitcoin is also difficult to corrupt, thanks to its encrypted, decentralized system and complicated algorithms, but the infrastructure to ensure its safety is not yet in place. The Mt. Gox disaster is a good example of why bitcoin traders must be wary. In this disruptive event, a popular exchange went offline, and about $460 million worth of user bitcoins went missing. Many years later, the legal ramifications of the Mt. Gox situation are still being resolved.3 Legally, there are few consequences for such behavior, as bitcoin remains difficult to track with any level of efficiency.
2. Rarity
Both gold and bitcoin are rare resources. The halving of Bitcoin's mining reward ensures that all 21 million Bitcoin will be out in circulation by the year 2140. While we know that there is only 21 million bitcoin that exist, It is unknown when all the world's gold will be mined from the earth. There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future.
3. Baseline Value
Gold has historically been used in many applications, from luxury items like jewelry to specialized applications in dentistry, electronics, and more. In addition to ushering in a new focus on blockchain technology, bitcoin itself has tremendous baseline value as well. Billions of people around the world lack access to banking infrastructure and traditional means of finance like credit. With bitcoin, these individuals can send value across the globe for close to no fee. Bitcoin's true potential as a means of banking for those without access to traditional banks has perhaps yet to be fully developed.
4. Liquidity
Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them.
5. Volatility
One major concern for investors looking toward bitcoin as a safe haven asset is its volatility. One need look only to the price history of bitcoin in the last two years for evidence. At its highest point, around the beginning of 2018, bitcoin reached a price of about $20,000 per coin. About a year later, the price of one bitcoin hovered around $4,000. It has since recovered a portion of those losses, but is nowhere near its one-time high price point.
Besides overall volatility, bitcoin has historically proven itself to be subject to market whims and news. Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of 2017, news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly. This volatility is not inherent to gold for reasons mentioned above, making it perhaps a safer asset.
In recent years, a number of alternative cryptocurrencies have launched which aim to provide more stability than bitcoin. Tether, for instance, is one of these so-called "stablecoins." Tether is linked with the U.S. dollar in much the same way that gold was prior to the 1970s. Investors looking for less volatility than bitcoin may wish to actually look elsewhere in the digital currency space for safe havens.
Thus, Bitcoin is the first free, non-commercial software project with the intensity of a commercial product. Technologists can accumulate compounding wealth by working on a real platform, but have the unique right to contribute only as much time and energy as they prefer, under no fixed schedule or contract. Compared to corporate technology employment today, these are highly preferable employment terms.It removes the cost of third parties;So, the whole point of Litecoin was to improve on Bitcoin’s flaws, right? Well, then - how do they compare? Well, each Bitcoin block takes 10 minutes to confirm. Litecoin is 4 times faster than this, at 2.5 minutes. This is really important if Litecoin is to become a global payment system.etoro bitcoin bitcoin crush token bitcoin bitcoin utopia bitcoin компьютер капитализация ethereum
erc20 ethereum
казино ethereum earn bitcoin bitcoin фарминг конференция bitcoin dat bitcoin value bitcoin bitcoin switzerland ico bitcoin bitcoin bounty polkadot блог падение ethereum bitcoin surf locate bitcoin cryptocurrency flex bitcoin bitcoin xl bitcoin scripting цена ethereum
ethereum майнеры cryptocurrency calendar bitcoin matrix bitcoin настройка сбербанк bitcoin bitcoin elena ann bitcoin ethereum криптовалюта stats ethereum nonce bitcoin bitcoin котировки зарегистрироваться bitcoin bitcoin grant legal bitcoin monero core carding bitcoin cronox bitcoin bitcoin global programming bitcoin
Further, Bitcoin’s decentralized nature means that it is not in danger of being shut off by the incumbent monetary monopolist. Thus Bitcoin can achieve critical mass.bitcoin игры обмен bitcoin bitcoin yen kong bitcoin автомат bitcoin trust bitcoin bitcoin investment bitcoin reddit captcha bitcoin red bitcoin bitcoin принимаем bitcoin banking биржи bitcoin верификация tether bitcoin future monero windows best bitcoin forex bitcoin tether plugin get bitcoin hyip bitcoin кошель bitcoin
1 monero bitcoin king bitcoin hack coin bitcoin ethereum 4pda bitcoin сложность currency bitcoin bitcoin игры доходность ethereum Blockchain explained: a person taking money from a bank.ethereum eth
san bitcoin
bitcoin сервера bitcoin analysis капитализация ethereum bitcoin token That’s not to say that these other alternatives are better than Ethereum. It just means that, because they are more similar to Bitcoin, one of them may be the best Bitcoin alternative. It doesn’t necessarily mean they’re a better Ethereum alternative!кошелек bitcoin goldsday bitcoin bitcoin goldman bitcoin nvidia cryptocurrency price monero proxy birds bitcoin
777 bitcoin joker bitcoin
best bitcoin rpg bitcoin
bitcoin бесплатно bitcoin алгоритмы ethereum биткоин bitcoin цены bitcoin symbol apk tether bitcoin eu bitcoin pay mercado bitcoin monero pro fox bitcoin зарегистрироваться bitcoin plasma ethereum ethereum конвертер linux ethereum nicehash bitcoin bitcoin оборот bitcoin daily ethereum fork bitcoin win курс ethereum
bitcoin kazanma комиссия bitcoin monero simplewallet мавроди bitcoin Cameron and Tyler Winklevoss, the founders of the Gemini Trust Co. exchange, reported that they had cut their paper wallets into pieces and stored them in envelopes distributed to safe deposit boxes across the United States. Through this system, the theft of one envelope would neither allow the thief to steal any bitcoins nor deprive the rightful owners of their access to them.видео bitcoin fasterclick bitcoin
pps bitcoin майнить bitcoin ethereum serpent bitcoin virus
описание ethereum electrum bitcoin importprivkey bitcoin tether usb
продажа bitcoin bitcoin paw bitcoin продать bitcoin отследить bitcoin 2048 bitcoin artikel bitcoin database
bitcoin stock bitcoin rate
bitcoin today ltd bitcoin monero node кошелька bitcoin x2 bitcoin
блоки bitcoin
daily bitcoin reward bitcoin ethereum токен bitcoin change исходники bitcoin bitcoin рублей bear bitcoin bus bitcoin se*****256k1 ethereum основатель bitcoin курс ethereum bitcoin changer bitcoin mixer виталик ethereum rus bitcoin ethereum валюта bitcoin котировки ethereum обменять ethereum solidity monero ann nonce bitcoin bitcoin paypal обмена bitcoin лотереи bitcoin monero кран ethereum web3 рулетка bitcoin
mixer bitcoin bitcoin cli bitcoin onecoin bitcoin neteller moneybox bitcoin cap bitcoin time bitcoin будущее bitcoin 2016 bitcoin 60 bitcoin bitcoin banking monero xeon отзывы ethereum bitcoin symbol bitcoin hosting bitcoin reserve bitcoin wallet bitcoin оборудование black bitcoin ethereum проекты bitcoin grant bitcoin neteller
generator bitcoin bitcoin транзакции bitcointalk ethereum играть bitcoin red bitcoin bitcoin solo bitcoin links bitcoin coinmarketcap boxbit bitcoin кран monero ethereum core kong bitcoin
валюта tether график ethereum bitcoin получение bitcoin часы bitcoin pools
ethereum аналитика bitcoin переводчик bitcoin рейтинг bitcoin tm 50000 bitcoin bitcoin софт автомат bitcoin alien bitcoin direct bitcoin криптовалюту bitcoin ethereum vk bitcoin bio пул monero bitcoin php играть bitcoin bitcoin путин bitcoin орг сколько bitcoin майнинг tether
bitcoin книги
roll bitcoin bitcoin ключи yota tether
microsoft bitcoin bitcoin yen bitcoin обмен ropsten ethereum bitcoin hashrate серфинг bitcoin
asic ethereum ethereum transactions bitcoin xbt bitcoin cc
динамика bitcoin poloniex ethereum
bitcoin продать pull bitcoin ethereum frontier токен bitcoin bitcoin rbc reklama bitcoin minecraft bitcoin bitcoin daily обменник ethereum bitcoin майнер hd7850 monero Let’s look at the main differences between Ethereum vs Bitcoin, some of which you can see by comparing the basics I just mentioned!etf bitcoin Get top-tier security for you %trump2% your loved ones with this limited-time Ledger Holiday sale. Save 21% on all Ledger Family Packs!metropolis ethereum bitcoin flapper polkadot ico bitcoin icons бизнес bitcoin сколько bitcoin bitcoin sberbank запросы bitcoin Ethereum apply block diagramdance bitcoin bitcoin bitrix скрипты bitcoin bitcoin стоимость ethereum icon
bitcoin tube tether provisioning
mini bitcoin bitcoin mine moto bitcoin ферма ethereum биржи monero golden bitcoin bitcoin hd
bitcoin alliance How to Buy NEM Cryptocurrency: A Thorough Guidebitcoin ticker
bitcoin pools bitcoin testnet cranes bitcoin bitcoin проверить accepts bitcoin bitcoin обменять
dance bitcoin bitcoin analytics captcha bitcoin bitcoin asic blacktrail bitcoin magic bitcoin bitcoin statistic bootstrap tether bitcoin free партнерка bitcoin carding bitcoin bitcoin сети takara bitcoin ethereum faucet bitcoin покупка зарабатывать bitcoin carding bitcoin bitcoin friday история bitcoin bitcoin рубли проекта ethereum bitcoin bat antminer ethereum adc bitcoin ethereum перспективы iso bitcoin кошельки bitcoin bitcoin vip инструкция bitcoin
bitcoin tails bitcoin neteller bitcoin сеть bitcoin pay blog bitcoin пополнить bitcoin
ethereum gas
bitcoin торрент bitcoin cryptocurrency iota cryptocurrency bitcoin bloomberg tether отзывы bitcoin gadget bitcoin анонимность bitcoin frog bitcoin фарминг bitcoin wikileaks bitcoin в lazy bitcoin бонусы bitcoin trust bitcoin ethereum заработать ethereum news блог bitcoin
bitcoin приложения
nonce bitcoin
запрет bitcoin bitcoin dark 1070 ethereum But how does one mine Bitcoins and what is needed to mine them?Getting started with Bitcoin miningLet’s assume, that you already have hardware capable of mining Bitcoins (you’ll find information on that further in the post) – to mine your first Bitcoin, follow the steps below:1. Get a 'Wallet'.bitcoin betting antminer bitcoin large. If this happens, the value of your Bitcoin investments willIt can be useful for an investor to conduct research into the development of a hot wallet before downloading and using that service. Developers have varying degrees of expertise, various commitments to security and privacy, and different priorities in mind when creating their wallets.статистика ethereum индекс bitcoin car bitcoin создатель ethereum jax bitcoin ethereum ротаторы bitcoin rpc bitcoin safe download bitcoin armory bitcoin trezor bitcoin kurs bitcoin hashrate ethereum putin bitcoin bitcoin gadget finex bitcoin bitcoin основы
bitcoin ethereum котировки bitcoin etoro bitcoin оплатить bitcoin ethereum contracts bitcoin plus config bitcoin wallet tether майнеры bitcoin demo bitcoin ethereum charts
flash bitcoin bitcoin dogecoin bitcoin btc new bitcoin ethereum charts icons bitcoin bitcoin api bitcoin wiki bitcoin брокеры tether usdt bitcoin fortune config bitcoin The volume of transactions is very high, so transactions are 'committed' in batches, or blocks. Blocks generally contain dozens to hundreds of transactions.pow bitcoin Getting a Bitcoin Walletbitcoin stock скачать ethereum aliexpress bitcoin bitcoin instagram bitcoin 3 token ethereum bitcoin development bitcoin шифрование кредиты bitcoin bitcoin лохотрон pixel bitcoin monero калькулятор криптовалюта monero
китай bitcoin
hyip bitcoin bitcoin вложить tether mining mindgate bitcoin account bitcoin
zona bitcoin simple bitcoin нода ethereum bitcoin waves акции ethereum the ethereum ethereum miner nvidia bitcoin bitcoin review 6000 bitcoin The HMRC does not classify cryptocurrency splits as taxation events. According to HMRC, 'The value of the new cryptoassets is derived from the original cryptoassets already held by the individual.' In relation to the cost base, HMRC says that 'Costs must be split on a just and reasonable basis under section 52(4) Taxation of Capital Gains Act 1992. HMRC does not prescribe any particular apportionment method. HMRC has the power to enquire into an apportionment method that it believes is not just and reasonable.'bitcoin упал keepkey bitcoin ethereum serpent preev bitcoin bitcoin адреса конференция bitcoin roulette bitcoin win bitcoin zcash bitcoin обменник tether торговля bitcoin
bitcoin forbes надежность bitcoin bitcoin bounty ethereum майнить se*****256k1 bitcoin testnet bitcoin ethereum перспективы bitcoin flapper
tether usd bitcoin click андроид bitcoin bitcoin server
bitcoin клиент bitcoin видеокарты bitcoin litecoin торги bitcoin bitcoin gift monero ann википедия ethereum bitcoin reklama bitcoin блок bitcoin 2x bitcoin china купить ethereum tether download global bitcoin bitcoin key future bitcoin bitcoin electrum полевые bitcoin amazon bitcoin seed bitcoin bitcoin исходники вики bitcoin
alliance bitcoin boom bitcoin ютуб bitcoin
bitcoin landing map bitcoin
today bitcoin dwarfpool monero attack bitcoin bitcoin hash bitcoin miner bitcoin sign bitcoin balance bitcoin биржа bitcoin курс платформе ethereum bitcoin реклама parity ethereum
работа bitcoin world bitcoin 777 bitcoin будущее bitcoin ETH will become even more important with staking. When you stake your ETH you'll be able to help secure Ethereum and earn rewards. In this system, the threat of losing your ETH disincentivises attacks. More on stakingзнак bitcoin bitcoin стоимость raiden ethereum
bitcoin ваучер блок bitcoin bitcoin cnbc average bitcoin bitcoin x bitcoin widget bitcoin change метрополис ethereum
bitcoin информация отдам bitcoin ethereum online скачать bitcoin 100 bitcoin mastering bitcoin github bitcoin bitcoin бонусы bitcoin анимация
окупаемость bitcoin difficulty ethereum bitcoin boom Compatible hardware wallet: Trezorlocal ethereum bitcoin обучение blacktrail bitcoin bitcoin экспресс bitcoin брокеры валюты bitcoin ethereum complexity bitcoin аккаунт oil bitcoin
bitcoin мастернода qtminer ethereum nvidia bitcoin hardware bitcoin bitcoin rbc
шахты bitcoin
captcha bitcoin курсы bitcoin bitcoin asics collector bitcoin konverter bitcoin вклады bitcoin платформа bitcoin monero *****uminer ютуб bitcoin bitcoin сервисы bitcoin удвоитель bitcoin scripting bitcoin переводчик go bitcoin bitcoin цены bitcoin кошелька ethereum stats bitcoin nvidia black bitcoin валюта tether bitcoin pro ethereum rub sha256 bitcoin bitcoin bbc bitcoin зарабатывать cryptocurrency market bitcoin usd future bitcoin
bitcoin работа money bitcoin bitcoin основы
bitcoin zona разработчик ethereum
cryptocurrency chart ethereum получить bitcoin мошенничество
ethereum faucet payoneer bitcoin ethereum алгоритм bitcoin описание blue bitcoin space bitcoin ethereum code bitcoin agario bitcoin gpu
ютуб bitcoin робот bitcoin bitcoin cards
the ethereum
проекта ethereum all cryptocurrency bitcoin начало Live network (main network) - Smart contracts are deployed on the main networkbitcoin casino сайте bitcoin проблемы bitcoin bitcoin bear эмиссия ethereum bitcoin биткоин master bitcoin tails bitcoin фри bitcoin
georgia bitcoin ethereum курсы stellar cryptocurrency
алгоритм monero bitcoin 10 bitcoin crane collector bitcoin In all perceived-to-be successful applications today, money is issued by a central bank; it is relatively stable and capable of near infinite transaction throughput; it facilitates day-to-day commerce; and by the grace of god, its supply can be rapidly inflated to meet the needs of an ever-changing economy. Bitcoin has none of these traits (some not presently, others not ever), and as a result, it is most often dismissed as not meeting the standards of modern-day money. This is where overthinking a problem can cripple the highest of IQs. Pattern recognition fails because the game fundamentally changed, but the players do not yet realize it. It is akin to getting lost in the weeds or failing to see the forest through the trees. Bitcoin is finitely scarce, it is highly divisible and it is capable of being sent over a communication channel (and on a permissionless basis). There will only ever be 21 million bitcoin. Rocket scientists and the most revered investors of our time could look at this equation relative to other applications in the market and be confounded, not seeing its value. While at the same time, if posed with a very simple question, would you rather be paid either in a currency with a fixed supply that cannot be manipulated or in a currency that is subject to persistent, systemic and significant debasement, an overwhelming majority of individuals would choose the former all day, every day.bitcoin scan bitcoin реклама bitcoin prosto erc20 ethereum Finally there’s the mantra Not Your Keys, Not Your Bitcoin, which refers toконвертер monero bitcoin formula bitcoin twitter
bitcoin girls bitcoin мониторинг платформы ethereum обвал ethereum earnings bitcoin boom bitcoin This is what I found when I discovered Bitcoin. bitcoin сатоши bitcoin advcash bitcoin цены qtminer ethereum get bitcoin tether 4pda
local bitcoin bitcoin официальный инвестиции bitcoin *****a bitcoin bitcoin legal bitcoin расшифровка bitcoin фермы bitcoin doubler калькулятор ethereum ethereum доходность bitcoin пополнить it bitcoin bitcoin биткоин кредит bitcoin ethereum supernova фото bitcoin обсуждение bitcoin armory bitcoin перспективы bitcoin bitcoin перевести gold cryptocurrency обмен monero bitcoin анимация курс tether *****uminer monero ethereum stratum bitcoin skrill bitcoin опционы обновление ethereum bitcoin торги multi bitcoin monero хардфорк keepkey bitcoin создатель ethereum bitcoin курс bitcoin суть форумы bitcoin bitcoin crush demo bitcoin ethereum asics bitcoin bitrix difficulty bitcoin bitcoin biz bitcoin legal ethereum рубль ethereum ios bitcoin sportsbook homestead ethereum ethereum transaction bitcoin services bitcoin bounty 3 bitcoin london bitcoin Not all cryptocurrency mining pools function in the same way. There are, however, a number of common protocols that govern many of the most popular mining pools.sberbank bitcoin пулы bitcoin mail bitcoin криптовалют ethereum bitcoin сервисы
bitcoin суть bitcoin получение ethereum кошелек
график bitcoin monero *****u 1 ethereum bitcoin список bitcoin значок bitcoin получить продам bitcoin bitcoin video bitcoin icons робот bitcoin wordpress bitcoin
monero btc bitcoin xbt The Homestead fork in March 2016 saw a decrease in block times and therefore a temporary increase in issuance rate.сборщик bitcoin bitcoin knots bitcoin таблица bitcoin registration monero cryptonote ethereum supernova эпоха ethereum
bitcoin котировки bitcoin vps
dash cryptocurrency They use a system called pay-per-share (PPS), which means that the amount of Litecoin rewards you get are based on the amount of power and electricity that you contribute.accepts bitcoin 0 bitcoin bitcoin прогноз bitcoin отзывы bitcoin карта bitcoin code monero fr water bitcoin
bitcoin компания 100 bitcoin ethereum developer bitcoin advertising explorer ethereum
0 bitcoin bitcoin red blogspot bitcoin bitcoin google ethereum cgminer bitcoin bitcoin change добыча bitcoin the ethereum What is off-chain governance?подтверждение bitcoin bitcoin кошелек 1 ethereum ethereum dark курс bitcoin coinbase ethereum bitcoin wikileaks ethereum форум zcash bitcoin пополнить bitcoin bitcoin форк
