How does Gold Investment Compare with Cryptocurrency?

How does Gold Investment Compare with Cryptocurrency?

Gold is widely known to be among the best investment in safe-haven assets. Top providers such as offer such precious metals. For several years, gold remains to work against stock volatility for investors.

With the launch of cryptocurrencies such as bitcoin in 2009, the dynamics of safe-haven assets are changing. By bringing along some unique features with such digital currencies, it is being sought by many investors.

Are you wondering which of these should you invest in? The below comparison will help you know how gold investment compares with cryptocurrency:

Transparency and Legality

The system for weighing, grading, and tracking gold is very pristine. It is hard to pass fake gold. Moreover, the difficulty that corrupting gold involves is also greater.  The chances of investing in fake gold are low.

Cryptocurrency is also tricky to corrupt. Several encryptions and strong algorithms are in place for it. However, no infrastructure ensures its safety yet. You may require to be wary while investing in cryptocurrency.

When the exchange goes offline, cryptocurrency can go missing. It is challenging to track missing cryptocurrencies. During such cases, there will be legal consequences.

Baseline Value

The usage of gold is vast. It is one of the most popular luxury items.  Gold jewellery is usually in demand. The other applications of gold include electronics, dentistry, and much more. This demand enhances the baseline value of gold.

Bitcoin also enjoys a high baseline value. It ushers a valuable focus on blockchain technologies. Many individuals across the globe still lack access to proper banking facilities. With cryptocurrency, they can now send value around the world without the traditional financial means.

The true potential of cryptocurrency is yet to be completely unleashed. As it develops, the baseline value of cryptocurrency may increase further.

Rare Resources

Both cryptocurrency and gold are rare assets. However, the demand for them is high throughout the year. Rarity contributes to an increase in their value. There are many gold mines in several countries. But, it is not known when all of it can be exhausted.

Experts claim that exhaustion will not occur for several more years. Besides, other options such as recycling and mining from asteroids are also being considered.

Cryptocurrency also does not exist in large numbers. Its circulation is expected to increase significantly in the coming years.


A major concern for investors is the volatility of assets. Cryptocurrency tends to witness more volatility. During its launch, the price of each bitcoin was very high. However, the prices dropped drastically in the next year.

Though it has recovered most of the losses since then, it is nowhere close to its initial peak price point. Its prices tend to link with the market news and whims. Investors tend to rely on news from the sphere of digital currency. It prompts them to make quick decisions. This results in the fluctuation of the prices of cryptocurrency.

Gold, on the other hand, does not witness similar volatility. This makes investors gravitate towards it. Many consider gold to be a safer option while investing in assets.


Liquidity is an essential factor that many investors take into consideration. Gold’s liquidity often ranks at higher levels. Many investors source their liquidity during times of financial stress in the market.

Cryptocurrency also has liquid markets. It is not difficult to exchange fiat money for both cryptocurrency and gold. You are unlikely to experience any trouble during their exchange. This makes both cryptocurrency and gold smart investments.

Gold has enjoyed the status of a safe-haven asset for several decades. Cryptocurrency also shows much potential to join the list of safe-haven assets. The above comparison can help you in considering which of these assets make a better investment.


CATEGORIES : Finance Investments


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