For thousands of years, gold has been sought after as a means of amassing wealth in nearly all civilizations. Whether it be the U.S. in the 20th century or Asia hundreds of years ago, gold seemed to rule the world. And while each country has their specific currency, gold has always been the standard. But it wasn’t until this century that a new player entered the game, and some people are abandoning gold coins and investing instead into bitcoin. But what is bitcoin, and is it worth investing in instead of some form of gold?
What Is Bitcoin?
Unlike gold, which is a tangible item, bitcoin is a new digital currency, or cryptocurrency, established in 2009. As cryptocurrency, bitcoin is just a line of code with monetary value. Bitcoin exists outside of centralized banks, and it can be traded online, used to purchase online goods, or redeemed for cold, hard cash.
Should I Invest in Gold or Bitcoin?
The value and popularity of bitcoin have exploded over the past year, and more people are choosing to invest in cryptocurrency instead of gold. In 2017, the price of bitcoin surpassed gold, but it’s important to consider which is the better long-term investment. Some people think bitcoin will experience fleeting popularity, so they choose to stick with gold and its proven track record. Others feel that the future of currency is digital and that, eventually, bitcoin will become the preferred currency. There are a few key things to consider when deciding whether to invest in gold coins or bitcoin.
What About Inflation?
Since precisely 21 million bitcoins were “mined,” or issued, there’s never a concern about overproduction decreasing its value. On the other hand, the supply of gold has increased every year, which can affect its value. However, the low hanging fruit is gone, and additional time, money, and resources are being expended to mine increasingly lower grade deposits. As history has shown, despite fluctuations in value, gold has ultimately remained the “gold” standard.
Which Is More Reliable?
Gold is tried and true, while bitcoin is still new to the scene. Gold has already gained the trust of billions of people because of this, and bitcoin’s future is still unpredictable and may be volatile with potential government regulation or changes in technology. At the time of this writing, recent foreign government regulations have contributed to a decline in the value of bitcoin.
Ultimately, the decision to invest in gold or bitcoin is up to the individual, who might even decide to invest some in each currency. To discuss the pros and cons of each currency with a gold coin dealer, or to learn more about the value of your gold coins, contact Atlanta Gold & Coin Buyers for a free appraisal at 404-236-9744.