The crypto currency world has been getting immense attention lately, mainly due to the massive increase in certain currencies such as the most common and well known: Bitcoin. It is often referred to as ‘digital gold’, however there are many misconceptions and complexities to this new form of currency. Below, American Coins & Gold will outline the Top 3 Bitcoin & Gold Coin Differences.
1 – Digital vs. Physical
The first and most obvious difference is that Bitcoin is not backed by any physical currency. It is a purely digital currency which is highly divisible, which means you can own .0000001 of a bitcoin and use it to make purchases anywhere that accepts it. Also, unlike cash which they keep printing, bitcoin has a defined amount that will be released (21 million). There are estimates that this will occur around 2140.
On the other hand, as we all know gold coins are physical objects which means you can touch, feel, and secure them. Precious metals such as gold are much safer than having your money stored somewhere insecure. These fears of getting hacked have came to light after reports of people & companies missing millions of dollars of bitcoin and other crypto currencies.
2 – High Volatility vs. Steady
The massive growth of Bitcoin in 2017 has sparked FOMO (fear of missing out) in crytpo’s which has drawn so much attention to the space. With this space being massively volatile and changing every day, and every second, it is a very risky investment to make. Right now, Bitcoin is selling at $17,003. By the time you read this it will most likely be different! This massive surge has created many millionaires and even some billionaires which is insane.
On other hand, gold is one of the safest investments you can make because of its stability. While any type of investment will see its ups and downs, Gold is extremely stable compared to the crypto currency world which has massive swings every day, hour, and even second. Gold coins, especially rare or antique ones are extremely valuable and appreciate over time.
3 – New Age vs. Ancient
Gold is ancient and has been valuable as long as history dates back. Being used in jewelry and as currency, precious metals such as gold resembled wealth and abundance. Often being associated to royalty and extremely wealthy. We all know gold is a safe investment especially if your mindset is set for the long term, which it should be.
Bitcoin, on the other hand is such a new phenomenon where no one really knows what is going to happen. Is it a bubble? Because of all the uncertainty, and until the crypto market matures and we can evaluate years of data, we are granting Gold Coins the winner in this duel.
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