Many people in the market have compared Gold and Bitcoin. Both of those have proven to be very profitable to some investors and both have been harnessed as a speculative investment at some point and safe asset at others. While some analyst has compared those two, Bitcoin and Gold have important differences and similarities.
The main difference is that Gold is tangible while Bitcoin is purely digital. Investors who are thinking about buying either one of those can benefit significantly from comparing and contrasting the two.
Gold has been used as a form of currency for more than 2,000 years. The supply of gold is limited but no one really knows how much of this precious metal can be mined from the ground. Once it has been mined, Gold can be used in goods like jewelries. Additionally, investors can purchase the precious metal in many forms. They can buy gold bars, or they can gain exposure to its price moment throughout the wide range of a financial instruments such as ETF’s and gold futures. Golds has frequently generated significant attention as a safe asset. The precious metal rows to all time hype of more than $1700 per ounce in the late 2011. Reaching those levels as debt issues increase both USA and Europe.
Bitcoin is a digital currency. Like gold it is also created by mining. But the process is entirely electronic. Basically, Bitcoin miners verifies transactions and combined those transactions into a block. The sequence of this process makes up a digital currencies blockchain. Every time miner succeeds in completing a block, new Bitcoins are released. Under the Bitcoin protocol, those new Bitcoins accurately every ten minutes. People can use those units of digital currency to make transactions. They can also use Bitcoins to store value.
One of the most striking differences between gold and bitcoin is that while the precious metal represents a physical object, Bitcoin is entirely digital. Past both current maximum supply of Bitcoin is known specifically the total number of Bitcoins can ever be in existence. It has a fixed a limited supply. When it comes to gold, no one really knows how much of this precious metal is left on this planet. Miners can find gold under the surface of Earth and it also exist in sea water.
Gold and Bitcoin are both investments that have generated significant attention as a great asset. They are both speculative investments. Before buying or speculating either Gold or Bitcoin investors can benefit significantly from conducting and thorough due diligence plus, they should also keep in mind that the risk is inherited to investment. So, they should not invest any money they can’t afford to lose.