BTCManager Logo with clear background. Orange and white font.

BITCOIN PRICE: 6,026.82     HIGH: 6,500.10     LOW: 5,880.00

=
BTCManager.com
advertisement
Next Event

World Blockchain Roadshow 2018 – Asia and Europe • June 28 - August 18, 2018

That is the story of wbrshow.idacb.com — where you will find best investors from most popular areas. We picked up…

Click for more details
advertisement
BTCManager.com

Bitcoin Steams Ahead of Gold as 2018 Approaches

by

Bitcoin Steams Ahead of Gold as 2018 Approaches

Bitcoin, “the digital gold,” has been beating the yellow metal by a wide margin year-to-date. The Bitcoin Investment Trust has picked up an incredible 1407.42 percent, while SPDR Gold Shares have increased 11.93 percent.

The two resources outflanked the S&P 500 and the twenty-year US Treasury bonds. 2017 marks the second year in succession bitcoin has beaten gold and Wall Street. A year ago, the Bitcoin Investment Trust dramatically increased in value, while gold rose 8.73 percent.

Does this prove bitcoin to be a better investment than gold in 2018? It’s difficult to state, as past performance isn’t a guarantee for future performance, as the familiar aphorism goes on Wall Street. Furthermore, bitcoin has been around for a brief time. Still, the cryptocurrency possesses favorable circumstances over customary investments that may quicken its utilization later on.

“Bitcoin has many advantages over government currencies, not the least of which is that its supply is fixed,” says Finance Professor Geoffrey Smith, W. P. Carey School of Business at Arizona State University. “Thus, its purchasing power cannot be diminished by ‘currency printing’ by governments. See Venezuela and their inflation, for example. Anonymity is also an advantage. The blockchain technology also provides perfect record keeping, which eliminates mistakes and the opportunity for fraud and theft.”

advertisement

“Bitcoin is also an international currency, which can be used to facilitate international trade. It may also be very useful in low-trust countries with high levels of corruption where the banking system and legal system protections are not very strong. It remains to be seen, however, if it is useful as a currency due to the high volatility. Yet the number of Bitcoin transactions seems to be increasing every day.”

Obviously gold has its own particular points of interest, as well. It can be utilized to make jewelry, and in assembling of specific items. In the meantime, bitcoin has drawbacks. The blockchain, the innovation that made Bitcoin, can be utilized to create different cryptographic forms of money that may go up against bitcoin. Truth be told, it has officially done as such, making ether, litecoin, and ripple, to specify a few.

That is the reason financial specialists shouldn’t hurry to substitute gold for the digital cash in their portfolio, particularly on the off chance that they don’t accurately comprehend the idea of the cryptocurrencies.

 

Disclaimer: Investing in cryptocurrencies or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.

Join our Telegram Channel!