India as a country has the longest believers in the potential of gold as a potential investment. Ask any Indian household, what do they find as the safest investment, and they are bound to answer, gold.
So can crypto be compared to this age-old forerunner of the investment market? After all, one can die may have similarities between the two. Both are unregulated by the government. Both have a fixed supply and thus their price is mainly governed by demand and supply. So considering the tremendous returns cryptocurrency has been offering its investors, can it make gold lose its posture in the investment market?
Gold is mainly used as a hedge against inflation. However, it does have certain demerits. It can be stolen easily. Needs physical space to be stored and usually needs maintenance. As a result, investors have started looking at Bitcoin as the new gold. It is purely decentralised, needs no maintenance and can be stored virtually and it is one of the most lucrative assets.
Vishu Gupta, Founder & Director, Nonceblox Blockchain Studio said, “When we compare it with 5-7 per cent rate of inflation, bitcoins not only hedge your position but generate ealth for generations to come,” Vishu Gupta said.
Amit Gupta, MD at SAG Infotech also pointed out how many institutional investors have been turning towards bitcoin over gold, especially as a hedge against inflation.
Four factors can be attributed to this sudden change
Both Bitcoin and Gold are some of the most durable investment choices. As long as the internet would function, Bitcoin can be put to use.
Bitcoin can be divided into individual satoshis, with 100,000,000 satoshis making up 1 BTC. Gold cannot be divided as easily
- Difficult to Duplicate and Fake:
Bitcoin and gold can’t be counterfeited and duplicated. Bitcoin is easy to recognize and impossible to counterfeit. Gold is pretty recognizable, though it must be tested for purity under some circumstances
The above reasons are why Bitcoin might be able to take over even gold shortly.
It is high time that people start seeing cryptocurrency as a viable source of investment despite the risk it carries, for the world is surely making a shift towards it.
What do you think?