Bitcoin (BTC) is often called digital gold because both assets help investors protect their savings from inflation. The editors of the VR Soldiers found out what is more profitable to keep your savings in. To do this, we compared the results of Bitcoin and gold over the past five years.
Bitcoin vs Gold
Despite the fact that both assets are used to protect savings from inflation, gold and cryptocurrency have a lot of differences. Over its centuries-old history, the precious metal has repeatedly proven its investment attractiveness. As soon as alarming events occur in the world, people run to buy gold, pushing its prices up. Therefore, it is often called the currency of fear.
Bitcoin only appeared in 2009. Compared to gold, cryptocurrency is a newcomer. Despite its young age, BTC has also managed to earn the trust of investors. Large companies such as Tesla and MicroStrategy are investing in Bitcoin, and Wall Street giants, including BlackRock, are building investment instruments on its basis.
Both assets brought investors income over five years. At the same time, BTC has given its owners significantly more profit over the last five years. But due to the high volatility of Bitcoin and the cyclical behavior of the cryptocurrency rate, which includes periods of prolonged decline, gold defeated the coin over a distance of 3 years.
The comparative performance of Bitcoin and gold
If you dive back into the depths of the years, the trend continues – Bitcoin significantly outperforms gold in terms of profitability. As of the time of writing this review, all BTC investors who bought the cryptocurrency 30 or more days ago are in profit.
However, gold also performs well over the long term. At the same time, a comparison of the results allows us to conclude that BTC has already surpassed the profitability that the precious metal has been achieving for 20 years.
Moreover, there are aspects in which the precious metal is significantly superior to the crypt. Regulators have no complaints about gold, but they do have complaints about Bitcoin. Cryptocurrency, unlike precious metals, is not legal in all countries.
At The End
Over a short lifespan compared to gold, $Bitcoin has proven its investment attractiveness. BTC gives good results in the long term. Short-term investments in Bitcoin are less predictable due to the high volatility of the cryptocurrency and its behavior within cycles.
