Why are investors ditching Gold for Bitcoin?

Investment is always futuristic and with a perspective to gain more profits. Gold, shares, bonds, stocks, etc. have been a popular choice when it comes to investment; however, recently a shift has been seen in this. Many investors are now changing their way to gold and for obvious reasons.

We are living in an era of digital revolution, and virtual currencies or Bitcoins have emerged as a popular choice for people. There are many reasons for the same, the ease of transfer, lesser control, no third party interference, etc. are some of the reasons which have skyrocketed the price of cryptocurrencies with Bitcoin topping the list.

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Launched in the year 2008 and the market since 2009, Bitcoins have only created success stories; whether it is about being a popular choice or it is about giving better returns to the investors, Bitcoins have never ditched their investors. Another reason for this can be, the growing interest of banking systems and many nation’s financial institutions to shift their focus on these currencies, leading to a positive return to their investors.

When it comes to investment in Bitcoins, then there has been a mixed bag of experience, for some people it has given higher returns as the price of Bitcoins grew multiple folds, however, after the recent decision of China to ban ICO, there has been some effect on the prices. It can be said that Bitcoins or other cryptocurrencies are highly volatile so, one must invest cautiously, but for now, it’s a honeymoon period for investors, and thus, they are making the most of it by investing in Bitcoins.

Many investors wish to invest in gold or other precious metal because the government does not control the value of this asset, and thus if a nation is affected by war or any other issues, the value of gold, unlike national currency, will not devalue. Bitcoins come with similar features. It exists on the computerized system and is not controlled by the government, and thus, thus it will not be devalued.

Word of caution before investment-

Bitcoin is a decentralized currency, and since the time it was first introduced in 2008, it has experienced rapid inflation. But, there is a limited supply of Bitcoins, we have only 21 million coins circulating in the market, and thus, the price has stabilized when compared to the time it was first introduced.

Although Bitcoins are less vulnerable to inflation as compared to the federal reserve Notes, Bitcoins are immune to inflation.

Traditionally, gold remains a popular choice for investment, but the recent decline in the prices shows that investment pool is starting to drift towards cryptocurrencies. Well, it’s a matter of wait and watches to see how Bitcoins are going to perform.

Although people are now investing in Bitcoins, it’s always advisable to be a bit cautious, because of volatility and lack of control, and many nations not in the list of opponents of Bitcoins and other cryptocurrencies, one must do not follow the herd while investing. You must first gain complete insight into what you are spending and then proceed. But, for now, we have Bitcoins taking the world by financial storm.