Bitcoin Is Now More Valuable Than Gold – Should You Invest In It Now?

    Bitcoin Guide

    Useful information concerning cryptocurrency has continued to be brought to the fore over the past few years. This has in return led to the emergence of a new cycle of investors attracted by the prospect of cryptocurrency as a high rewarding investment option.

    THE RISE OF CRYPTOCURRENCY
    For the past few months, the value of the crypto coin having been on a rising trajectory finally surpassed the cost of an ounce of gold.

    With the growing interest by potential investors having considerably swelled, exploring the various reasons for investing in cryptocurrency as opposed to gold and the factors for the decline or stagnation in gold value will thus resonate with many. One important point to note though, before advancing into the subject, is that, unlike a company or a stock investment, investing in cryptocurrency simply involves buying the currency.

    REASONS WHY YOU SHOULD PREFER TO INVEST IN CRYPTOCURRENCY OVER GOLD.

    I. A phenomenal increase in cryptocurrency use by people and businesses compared to gold.
    As per the data availed by BitPay, a Bitcoin merchant processor, there is a clear indication of a general upward trend of merchant transactions. A number of prominent online networking platforms such as Zarfund transact with bitcoins. Additionally, with Zarfund account, you can make referrals thereby growing your crypto currency faster.

    II. First-mover
    The other existing digital currencies don’t offer much of a competitive threat to the use of Bitcoin. This is for the two simple reasons; it possesses the largest market capitalization in respect to other virtual currencies and also more and more applications are being built based on it than any other virtual currency and gold.

    III. The fastest growing currency in the world
    The value of 1btc in equivalence to the dollar has been rising over the years in comparison to gold and the dollar; its value increases each week. Additionally, trading with Bitcoins is simple. First, you create an online wallet and fund it by purchasing from crypto-coin vendors such as Nairaex. For you to trade with gold, they have to be converted to traditional or digital currency first through the exchange.

    IV. Convenience
    Though cryptocurrency has almost the same properties as gold, it edges out gold on the ground of convenience in the fact that, it can be traded more easily. As had already been indicated earlier, several merchants such as Microsoft and Expedia accept crypto-coin as a means of payment while many others continue to adopt it. Compared with gold, it is not easy for example, to walk in your favorite eatery joint and pay for the service delivered using gold.

    V. Transparent and has a fixed supply
    The above advantages over gold eliminate fears of inflationary-associated pressures tied to overproduction which leads to the devaluing of an asset. When compared, cryptocurrency is on a schedule of disinflationary supply while gold has been described as a ‘sneakily inflationary asset.’

    While on the other hand cryptocurrency appears a good investment value, further preference by many potential investors has been aided by the fact that the value of gold has tended to remain flattish (unchanging) over the last few months. Reasons for the uncertainty surrounding gold include:
    a. Wait and see attitude
    The recent sell-off in international markets has not done any justice in furthering the course for investing in gold. Demonization is expected to drag on the demand for gold. Apart from that, with Indian markets following a global trade, it is expected to have a falling effect on domestic markets.
    b. Global concerns
    Gold concerns have increased with many markets having still not grasped the policy stance of the new president of America, Donald Trump. The USD and gold usually move in opposing sides, meaning that, a lower gold price would indicate a stronger dollar. Any boost in economic growth will lead to a stronger dollar which in return leads to a correction in prices.

    In conclusion
    From the considerations above, one possible indication of the future of Crypto coin may as well be that, it is the future of currency. Advice is given that a lot of consideration has to be given before anyone jump ships and invests in the digital currency.

    Just like any other possible investment opportunity, while digital currency appears as a feasible investment, a number of issues have been raised by doubters including; a possible regulations by government in other parts of the world, different approaches to investing in different countries therefore its volatility, possible competition from another protocol and a possible attack on the network due to its decentralized nature of cryptocurrency.

    While the issues raised are of substance, the market penetration of Crypto coin is still expected to increase over the coming years. To further enhance this prospect, enough cooperation will be required between various actors to mitigate on the possible fears or worst case scenarios arising from digital currency usage.

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