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Friday, January 27, 2023

Bitcoin: 5 Reasons Why It Can Be A Better Investment Than Gold

Bitcoin and gold are two of the most important assets in the world. They each have their own unique properties and uses, but they also have some similarities.

With gold, your investment is tied to the price of gold. With BTC, it’s tied to the price of BTC. The value of an ounce of gold will always be about $1,300, but if the price of a single bitcoin goes up from $3,000 to $30,000 (a hypothetical example) in one year, your initial investment would have multiplied by 100x!

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Bitcoin has no inflation risk and no government backing—the market controls its value. As long as people are willing to buy and hold it as an asset class you can be sure that its value will remain fairly stable in comparison with other currencies that may fluctuate wildly in response to political or economic events

Reasons Why Bitcoin Is A Better Choice

As with all physical assets, there is a risk that an investor will not be able to easily convert their holdings into cash. Gold and silver have historically been used as a store of value for decades, so this is less of a concern for many investors. However, bitcoin has only recently become a mainstream investment option and it may take time before it reaches its full potential as a safe haven asset. The cryptocurrency’s price could increase significantly over the long term and this would mean that selling your bitcoin later on would be more difficult than if you had sold it earlier.

International Risk: With gold, you’re limited by the amount of gold that can be mined. As the world’s supply of gold is finite, its value can be expected to rise only so much over time. On the other hand, Bitcoin has no known limit on how many bitcoins can be produced or mined over time (although there are limits based on how many miners are willing to invest in mining equipment).

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If you are thinking about investing in gold, there’s a chance that you want to do so because of the fact that physical gold can’t be created out of thin air. However, keep in mind that bitcoin is also resistant to this type of manipulation as well. Even if all 21 million bitcoin were mined and put into circulation today, it would still be difficult for governments or central banks to create more without having access to private keys.

Additionally, there is no way for someone who controls all 21 million bitcoin (known as “whales”) to use their coins at once in order to manipulate prices like they could with other assets like stocks or bonds which only have limited supply. And even if one whale did try something like this with BTC , they’d have an extremely difficult time doing so because any transaction above $1 million would require him/her/them transferring ownership with multiple signatures from different wallets across multiple exchanges before being able to move funds anywhere else

When it comes to the security of your investment, gold has a few major advantages over bitcoin. Gold is stored in a vault by trusted third-parties and insured against theft or damage. In contrast, BTC is stored on a computer that can be hacked into at any time. Additionally, bitcoin does not have any government backing or insurance—if you lose all your funds in Bitcoin, there’s no entity who will replace them for you as there would be with gold investments.

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