For thousands of years, gold has been sought after as a means of amassing wealth throughout nearly every civilization. From the United States in the 20th century to Asia centuries earlier, gold appeared to hold worldwide influence. Although every country has its own currency, gold has long been a standard. Only in this century did a new participant emerge, with some people leaving gold coins behind to invest in bitcoin. What is bitcoin, and was it worth investing in rather than some form of gold?
What Is Bitcoin?
Unlike tangible gold, bitcoin is a digital currency, or cryptocurrency, created in 2009. As cryptocurrency, bitcoin is essentially computer code assigned monetary value. It operates outside centralized banks and may be traded online, used for online purchases, or exchanged for cash.
Should I Choose Gold or Bitcoin?
At the time of publication, bitcoin’s value and popularity had surged over the preceding year, and more people were selecting cryptocurrency instead of gold. In 2017, bitcoin’s price exceeded gold’s, but the article noted the importance of considering which might be the better long-term investment. Some believed bitcoin’s popularity would be temporary and preferred gold’s established record. Others believed currency’s future was digital and that bitcoin would eventually become the favored currency. The article identified several important points to weigh when choosing between gold coins and bitcoin.
What About Inflation?
Because exactly 21 million bitcoins were “mined,” or issued, the article described no concern that overproduction would reduce bitcoin’s value. Gold’s supply, by contrast, has risen each year and can influence its value. Yet easily reached deposits have been exhausted, while mining lower-grade deposits requires additional time, money, and resources. The article stated that history showed gold, despite value fluctuations, had ultimately remained the “gold” standard.
Which One Is More Reliable?
Gold has a long-established record, whereas bitcoin was still relatively new. The article said gold had earned the trust of billions for that reason, while bitcoin’s future remained uncertain and could be volatile because of possible government regulation or technology changes. At the time this article was written, recent foreign-government regulations had contributed to bitcoin’s declining value.
The article concluded that choosing gold or bitcoin was an individual decision, and that some people might choose to hold some of each currency. When this article was originally published, readers were invited to discuss the advantages and disadvantages of each currency with a gold-coin dealer, or learn about their gold coins’ value, by contacting Atlanta Gold & Coin Buyers for a free appraisal at 404-236-9744.
