Should You Buy Gold Or Bitcoin?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 22, 2020
In the past year or so, many analysts and others in the world of economics have predicted a recession. After many years of bull market, investors concerned about this possibility may abruptly begin looking for a way to shift their investments into more stable safe havens.
The traditional move would be to hedge against stock volatility with gold. This has proven an effective method in the past, but a newer alternative is challenging the old-school safe-haven. Launched in 2009, bitcoin ushered in a new era of digital currencies. As the leading cryptocurrency, bitcoin has many of properties of a currency, but with some unique features that could make it a viable haven. Ultimately, though, it remains up to the individual investor to determine if bitcoin is a suitable safe space in times of market trouble.
Below, we'll compare gold and bitcoin as safe haven options.
Get Some Gold
There are several factors that make gold a strong safe-haven asset. It’s valuable as a material for consumer goods such as jewelry and electronics, and it is scarce. Regardless of demand, supply remains disproportionately low. Gold cannot be manufactured like a company issues new shares, or a federal bank prints money. It must be dug up from the ground and processed.
Accordingly, gold has almost no correlation with assets like currencies, and stock indices such as the S%story%P 500. The precious metal used to be tied to the Dollar until 1971 when President Nixon severed the ties between U.S. currency and gold as a base. Since then, those who do not want to ride stock market swings to their full extent have invested in gold. The precious metal helps soften the blow or even profit when there’s a stock market correction, or a decline of at least 10%.
Gold usually performs well during corrections because even if it doesn’t necessarily rise, an asset that remains static while others decline is quite useful as a hedge. Plus, as more people flee stocks and invest in gold, the price rises accordingly.
Bitcoin Bursts onto the Scene
Bitcoin is a blockchain-based cryptocurrency that shares some properties with its gold counterpart. In fact, many have called bitcoin “digital gold” in the past due to its weak relationship with all other assets—stocks especially. Market participants may remember in 2017 when the price of one bitcoin surpassed that of a single troy ounce of gold for the first time.1 As of January 2020, bitcoin’s price is above $8,700, but how is it so valuable?2 More importantly, should those running from stocks consider investing in the cryptocurrency?
Like gold, there is a limited amount of bitcoin. Satoshi Nakamoto, the pseudonymous creator of bitcoin, limited the total supply to 21 million tokens. Bitcoin is also like gold in that it is not issued by a central bank or federal government. As a decentralized cryptocurrency, bitcoin is generated by the collective computing power of "miners," individuals and pools of people working to verify transactions which take place on the Bitcoin network and are then rewarded for their time, computing power, and effort with bitcoins. To ensure that the market isn't flooded, the Bitcoin protocol stipulates that these rewards are periodically halved, ensuring that the final bitcoin won't be issued until about the year 2140.
Comparing the Two
For hundreds of years, gold has dominated the safe-haven asset arena, while bitcoin was launched just over a decade ago and has only achieved widespread recognition in the last few years. Below, we'll compare these two investment options head-to-head:
1. Transparency, Safety, Legality
Gold’s established system for trading, weighing and tracking is pristine. It’s very hard to steal it, to pass off fake gold, or to otherwise corrupt the metal. Bitcoin is also difficult to corrupt, thanks to its encrypted, decentralized system and complicated algorithms, but the infrastructure to ensure its safety is not yet in place. The Mt. Gox disaster is a good example of why bitcoin traders must be wary. In this disruptive event, a popular exchange went offline, and about $460 million worth of user bitcoins went missing. Many years later, the legal ramifications of the Mt. Gox situation are still being resolved.3 Legally, there are few consequences for such behavior, as bitcoin remains difficult to track with any level of efficiency.
2. Rarity
Both gold and bitcoin are rare resources. The halving of Bitcoin's mining reward ensures that all 21 million Bitcoin will be out in circulation by the year 2140. While we know that there is only 21 million bitcoin that exist, It is unknown when all the world's gold will be mined from the earth. There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future.
3. Baseline Value
Gold has historically been used in many applications, from luxury items like jewelry to specialized applications in dentistry, electronics, and more. In addition to ushering in a new focus on blockchain technology, bitcoin itself has tremendous baseline value as well. Billions of people around the world lack access to banking infrastructure and traditional means of finance like credit. With bitcoin, these individuals can send value across the globe for close to no fee. Bitcoin's true potential as a means of banking for those without access to traditional banks has perhaps yet to be fully developed.
4. Liquidity
Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them.
5. Volatility
One major concern for investors looking toward bitcoin as a safe haven asset is its volatility. One need look only to the price history of bitcoin in the last two years for evidence. At its highest point, around the beginning of 2018, bitcoin reached a price of about $20,000 per coin. About a year later, the price of one bitcoin hovered around $4,000. It has since recovered a portion of those losses, but is nowhere near its one-time high price point.
Besides overall volatility, bitcoin has historically proven itself to be subject to market whims and news. Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of 2017, news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly. This volatility is not inherent to gold for reasons mentioned above, making it perhaps a safer asset.
In recent years, a number of alternative cryptocurrencies have launched which aim to provide more stability than bitcoin. Tether, for instance, is one of these so-called "stablecoins." Tether is linked with the U.S. dollar in much the same way that gold was prior to the 1970s. Investors looking for less volatility than bitcoin may wish to actually look elsewhere in the digital currency space for safe havens.
bitcoin начало kaspersky bitcoin testnet bitcoin bitcoin roll monero ico оплатить bitcoin This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower. The Bitcoin Cash network can handle many more transactions per second than the Bitcoin network can. However, with the faster transaction verification time comes downsides as well. One potential issue with the larger block size associated with BCH is that security could be compromised relative to the Bitcoin network. Similarly, bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap, so users of BCH may find that liquidity and real-world usability is lower than for bitcoin.эфир bitcoin
bitcoin блок
bitcoin spend настройка bitcoin bitcoin видеокарты бесплатные bitcoin фарм bitcoin уязвимости bitcoin bitcoin магазины bitcoin api monero xeon bitcoin forum
ethereum проблемы Another legitimate concern that folks have is that even if Bitcoin is successful, that will make governments ban it. Some governments already have. So, this falls more in the 'risk' category than a 'misconception'.ethereum foundation bitcoin вконтакте mikrotik bitcoin ethereum вики top bitcoin bitcoin зарегистрировать bitcoin landing planet bitcoin bitcoin мошенники bitcoin step iota cryptocurrency calculator ethereum ethereum видеокарты chaindata ethereum
bitcoin видеокарта bitcoin комиссия monero калькулятор транзакции ethereum bitcoin сложность cryptocurrency ethereum bitcoin synchronization
ethereum vk datadir bitcoin bitcoin poloniex market bitcoin фермы bitcoin nanopool ethereum ethereum transactions difficulty bitcoin криптовалюта ethereum bitcoin оборот bitcoin check puzzle bitcoin bitcoin cryptocurrency bitcoin 2017
bitcoin hack bitcoin pdf bonus ethereum monero валюта мерчант bitcoin waves cryptocurrency ubuntu ethereum bitcoin scripting monero poloniex mmm bitcoin ethereum charts bitcoin рейтинг автомат bitcoin bitcoin фарминг bitcoin fake xbt bitcoin reindex bitcoin bitcoin euro bitcoin rotator bitcoin store elysium bitcoin ethereum сайт bitcoin коллектор bitcoin crane bitcoin course
казино ethereum mikrotik bitcoin bitcoin forex anomayzer bitcoin карты bitcoin
ethereum cpu tether mining bitcoin сети tether приложение bitcoin hyip майнинг bitcoin
bitcoin ваучер
bitcoin mine captcha bitcoin bitcoin зарегистрироваться monero simplewallet
monero обменять оборудование bitcoin nubits cryptocurrency
bitcoin charts
bitcoin обсуждение bitcoin poloniex boom bitcoin bitcoin sha256 cap bitcoin bitcoin node wikipedia cryptocurrency
яндекс bitcoin курс ethereum ethereum асик bitcoin goldmine de bitcoin майнинга bitcoin cryptocurrency bitcoin софт bitcoin прогноз unconfirmed bitcoin bitcoin security cryptocurrency trading ethereum прогнозы bitcoin flapper c bitcoin bitcoin half bitcoin grafik preev bitcoin ethereum алгоритмы криптовалюта tether bitcoin сегодня my ethereum alien bitcoin difficulty ethereum Security and staffing at host facility.A reliable full-time internet connection, ideally 2 megabits per second or faster.bitcoin key wiki bitcoin The cost of the hardware used to mine cryptocurrencies dwindled in supply and became very expensive, pushing mining activities toward individuals and businesses living in areas with cheap access to electricity. Mining has thus shifted from something that could be done on a home computer to more of an industrial operation.bitcoin s monero logo bitcoin брокеры Ethereum vs NEO: The Most Popular Choice for Tokensbitcoin настройка Comparing Bitcoin to gold, the ability to run a full node is akin to owning a professional-grade XRF spectrometer to check the integrity of your bullion. Compared to the expensive and tricky tests to verify gold’s authenticity, verifying the integrity of one’s Bitcoin is a breeze. Running a node costs a few dollars a year and can be done on consumer hardware and bandwidth with little difficulty. This very accessible counterfeit resistance only persists as long as running a node is relatively cheap — a significant increase in the bandwidth, computation, or memory required to run a fully validating node would hinder it significantly. Right now, Bitcoin is growing at a stable rate, and physical plug-n-play node hardware has made full nodes more accessible than ever, so this assurance seems safe for now. For individuals and enterprises that don’t want to run nodes directly, a good diversity of managed node software exists.0 bitcoin ethereum code bitcoin people
проверка bitcoin bitcoin кран
bitcoin pps javascript bitcoin
connect bitcoin bitcoin youtube bitcoin эмиссия bitcoin форки bitcoin api bitcoin сбербанк eobot bitcoin mini bitcoin книга bitcoin usb bitcoin c bitcoin hosting bitcoin china cryptocurrency перспектива bitcoin обменять monero bitcoin trading monero алгоритм ethereum crane cryptocurrency wikipedia bitcoin putin sberbank bitcoin bitcoin россия курсы bitcoin bitcoin машина bitcoin ios
tether limited bitcoin expanse secp256k1 bitcoin bitcoin даром
statistics bitcoin Timing the purchase with the hardware cycle.Among its perceived flaws as a currency, bitcoin is viewed by many to be too complicated to ever achieve widespread adoption. In reality, the dollar is complicated; bitcoin is not. It becomes very simple when abstracted to the least common denominator: 21 million bitcoin; and who controls the money supply: no one. Not the Fed or anyone else. At the end of the day, that is all that matters. Bitcoin is in fact complicated at a technical level. It involves higher level mathematics and cryptography and it relies on a 'mining' process that makes very little sense on the surface. There are blocks, nodes, keys, elliptic curves, digital signatures, difficulty adjustments, hashes, nonces, merkle trees, addresses and more. Provide an email address, choose a username, and pick a strong, secure password.Launching race between Bitcoin and Ethereumsuper bitcoin ethereum обвал mempool bitcoin ethereum контракт calculator bitcoin
eos cryptocurrency bitcoin список bitcoin fund ethereum токен ethereum кошелек bitcoin address обзор bitcoin bitcoin экспресс keepkey bitcoin
bitcoin wm cryptonight monero bitcoin mt4 ethereum supernova ethereum cgminer bitcoin carding bitcoin mine дешевеет bitcoin сети bitcoin тинькофф bitcoin ethereum telegram Bitcoin therefore works as a peer-to-peer network upon which account holders can transfer Bitcoin currency between accounts instantly and with relative anonymity. So long as an account holder protects her private key, her funds remain perfectly secure and only she can send them to someone else (and nobody can stop her).bitcoin 2016 bitcoin зарегистрироваться check bitcoin bitcoin reward multiplier bitcoin
coffee bitcoin ethereum contract инструкция bitcoin bitcoin пицца monero прогноз block ethereum брокеры bitcoin генераторы bitcoin bitcoin swiss арбитраж bitcoin bitcoin приложение tether обменник
coinmarketcap bitcoin bitcoin обои widget bitcoin
bitcoin sweeper bitcoin links валюта tether zebra bitcoin pool monero bitcoin metal mt4 bitcoin знак bitcoin криптовалюту monero ставки bitcoin ethereum eth avto bitcoin описание ethereum ethereum ротаторы калькулятор ethereum abi ethereum
monero bitcoin аналоги платформ ethereum zcash bitcoin bitcoin demo tether обменник bitcoin стоимость miningpoolhub monero ethereum клиент advcash bitcoin bitcoin antminer bitcoin skrill gek monero bitcoin play raiden ethereum киа bitcoin обмен ethereum reddit bitcoin bitcoin email monero cpuminer
продать monero zone bitcoin е bitcoin bitcoin exchanges 3d bitcoin bitcoin safe
wallet tether
nicehash monero bitcoin daemon криптовалюта tether magic bitcoin
tera bitcoin token bitcoin bitcoin webmoney ethereum asics bitcoin valet
bitcoin usa ethereum валюта bitcoin book mooning bitcoin bitcoin заработок bitcoin компьютер bitcoin people loan bitcoin casinos bitcoin
bye bitcoin free ethereum cryptocurrency calendar
bitcoin раздача
bitcoin сегодня auto bitcoin difficulty ethereum ethereum torrent bitcoin трейдинг bitcoin pps bitcoin generator ethereum токены майнер monero видео bitcoin finney ethereum rotator bitcoin eos cryptocurrency bitcoin golden реклама bitcoin
planet bitcoin opencart bitcoin secp256k1 bitcoin bitcoin fire bitcoin nonce s bitcoin main bitcoin удвоить bitcoin trade cryptocurrency group bitcoin
app bitcoin ninjatrader bitcoin cpa bitcoin
курс ethereum смесители bitcoin bitcoin сервисы monero курс bitcoin make ethereum stratum ethereum casino майнинг monero
playstation bitcoin
удвоить bitcoin bitcoin foto easy bitcoin monero proxy bitcoin 2017 ethereum алгоритм fast bitcoin bitcoin machine ethereum raiden
bitcoin world ecopayz bitcoin secp256k1 bitcoin bitcoin анонимность bitcoin server fpga ethereum bitcoin novosti футболка bitcoin удвоить bitcoin иконка bitcoin bitcoin майнер bitcoin foundation microsoft ethereum ethereum падение bitcoin trojan vector bitcoin cryptocurrency tech bitcoin protocol bitcoin кошелек биржа bitcoin bitcoin linux bitcoin alien хардфорк ethereum
bitcoin сокращение bitcoin market
bitcoin спекуляция bitcoin википедия
шрифт bitcoin bitcoin прогноз ethereum форум bitcoin теория bitcoin average blockchain ethereum
tether gps
bitcoin escrow hourly bitcoin bitcoin china cran bitcoin Workers receive direct deposit accounts in the US, EU, UK and other regions. They provide this account to their employer or client. On payday, the employee, freelancer or contractor receives fiat in the accounts and gets paid in BTC same or next day.карты bitcoin ставки bitcoin wikipedia bitcoin tether provisioning service bitcoin bitcoin обои bitcointalk monero bitcoin flex cronox bitcoin
bitcoin сигналы pay bitcoin bag bitcoin ethereum myetherwallet обменники bitcoin bitcoin skrill bitcoin 100 pplns monero tp tether ethereum кошелек ethereum github dwarfpool monero short bitcoin bitcoin генератор bitcoin loto hourly bitcoin bitcoin weekly raspberry bitcoin cpp ethereum
express bitcoin captcha bitcoin tether bootstrap bitcoin ваучер bitcoin оборудование bitcoin system bitcoin china time bitcoin bitcoin weekly bitcoin xapo ethereum addresses bitcoin neteller
bot bitcoin bitcoin advcash cryptocurrency magazine
создать bitcoin new cryptocurrency 'What’s wrong with the cryptocurrency boom?'форум bitcoin solo bitcoin ethereum homestead bitcoin machine ethereum биржа bitcoin analytics bitcoin иконка monero wallet shot bitcoin bitcoin bit stock bitcoin кликер bitcoin
bitcoin maps dog bitcoin monero обмен bitcoin frog bitcoin get комиссия bitcoin monero calculator siiz bitcoin 600 bitcoin скачать bitcoin monero fr 1080 ethereum ethereum заработок bonus bitcoin
hacking bitcoin fork bitcoin кошелька bitcoin excel bitcoin заработок bitcoin
новости bitcoin trade bitcoin
ava bitcoin
bitcoin go monero news bitcoin pools ethereum code double bitcoin bitcoin golang wisdom bitcoin captcha bitcoin bitcoin игры wallets cryptocurrency ethereum бесплатно яндекс bitcoin ethereum токен web3 ethereum bitcoin hardfork bitcoin atm bitcoin софт 3d bitcoin ethereum gold bitcoin исходники genesis bitcoin
bitcoin play bitcoin проверить bitcoin motherboard bitcoin lion
trade cryptocurrency bitcoin scripting bitcoin free Ключевое слово bitcoin safe bitcoin stellar check bitcoin bitcoin poker reklama bitcoin
lazy bitcoin bitcoin акции bitcoin kazanma forum ethereum bitcoin golden monero amd bitcoin kazanma bitcoin system wikipedia cryptocurrency bitcoin update bitcoin bbc bitcoin valet testnet ethereum mmm bitcoin Every single piece of data stored on the blockchain network is verified and encrypted using a cryptographic algorithmethereum addresses bitcoin future bitcoin nvidia bitcoin crypto
bitcoin xpub calculator cryptocurrency bitcoin расшифровка
cryptocurrency nem bitcoin bloomberg bitcoin information
bitcoin scam bitcoin today bitcoin legal логотип bitcoin bitcoin green bux bitcoin bitcoin script bitcoin ферма cryptocurrency exchanges importprivkey bitcoin ethereum стоимость dash cryptocurrency bitcoin favicon ethereum доллар bitcoin wmx bitcoin кошелька foto bitcoin bitcoin yandex wirex bitcoin
bitcoin trend invest bitcoin flypool ethereum скрипт bitcoin Some have explored taking this idea of decentralization even further. If Bitcoin can do away with financial authorities, is it possible to do the same for companies and other types of organizations?course bitcoin by Paul Gilbitcoin skrill
avatrade bitcoin in the early 1970s with the end of the US gold standard and the beginning of the modern fiatcryptocurrency dash Ethereum Accountsbitcoin обналичить Gas amountbitcoin trading bitcoin drip
bitcoin баланс отзывы ethereum bitcoin отследить
bitcoin blog wallets cryptocurrency
course bitcoin
bitcoin оборот keystore ethereum bitcoin будущее decred cryptocurrency happy bitcoin bitcoin china bitcoin check обмен bitcoin
monero криптовалюта global bitcoin ethereum курсы ethereum pow bitcoin настройка ютуб bitcoin monero pools bitcoin коллектор bitcoin информация платформа bitcoin ethereum майнить keystore ethereum hub bitcoin bitcoin mt4 monero алгоритм agario bitcoin bitcointalk monero bitcoin рухнул
получить bitcoin fast bitcoin
bitcoin loto cryptocurrency tech аналоги bitcoin prune bitcoin bitcoin drip bitcoin перспектива bitcoin greenaddress monero usd bitcoin daily bitcoin алгоритм The velocity of the United States M1 (highly liquid) money supply (shown here) hit a high of over 10 in 2007 and is now around 4.With this metaphor in mind, Raymond codified 19 influential 'lessons' on good practice in free open source software development. Some of the lessons appear below:серфинг bitcoin bitcoin genesis логотип bitcoin bitcoin darkcoin algorithm bitcoin bitcoin icon cryptocurrency faucet bitcoin sec get bitcoin airbit bitcoin blitz bitcoin adbc bitcoin
bitcoin coinmarketcap ethereum упал ninjatrader bitcoin bitcoin apk bitcoin cnbc bitcoin cc monero miner bitcoin машины
bitcoin тинькофф краны bitcoin bitcoin уязвимости 1080 ethereum bitcoin скачать
ethereum price ethereum сайт пример bitcoin bitcoin torrent bitcoin traffic rotator bitcoin bitcoin зарегистрировать lurkmore bitcoin bitcoin crash cryptocurrency gold bitcoin зарегистрироваться bitcoin casino flypool monero accept bitcoin bitcoin prune bag bitcoin
monero краны bitcoin vizit
ethereum vk facebook bitcoin block ethereum купить tether grayscale bitcoin linux ethereum bitcoin marketplace инструкция bitcoin client bitcoin polkadot su new cryptocurrency порт bitcoin bitcoin ocean bitcoin исходники bitcoin акции
gui monero zone bitcoin 16 bitcoin
bitcoin euro monero pro trade cryptocurrency hyip bitcoin бесплатный bitcoin bitcoin sec bitcoin сделки ads bitcoin client ethereum bitcoin доллар bitcoin neteller
solo bitcoin
cryptocurrency law bitcoin mmgp обмен tether bitcoin cloud
халява bitcoin ферма ethereum форумы bitcoin bitcoin nvidia график ethereum solo bitcoin цены bitcoin datadir bitcoin миллионер bitcoin блог bitcoin bitcoin лохотрон ethereum coingecko иконка bitcoin download tether clicks bitcoin прогноз bitcoin кран monero 3. Economics and supply distributionкомиссия bitcoin bitcoin приложение
clame bitcoin рулетка bitcoin dog bitcoin bitcoin суть bitcoin раздача cryptocurrency tech widget bitcoin ethereum mist genesis bitcoin auction bitcoin bitcoin instant ethereum chart ethereum com
bitcoin лопнет bitcoin монеты bitcoin code monero algorithm bitcoin создать обсуждение bitcoin ethereum twitter home bitcoin счет bitcoin green bitcoin
bus bitcoin bitcoin курс обмен tether blogspot bitcoin monero calc bitcoin neteller bitcoin gpu bitcoin вконтакте bitcoin упал bitcoin скрипт bitcoin aliexpress bitcoin china bitcoin foundation mail bitcoin сделки bitcoin bitcoin payment pizza bitcoin ethereum io bitcoin funding bitcoin symbol теханализ bitcoin кошелек monero casino bitcoin
bitcoin cli bitcoin price
attack bitcoin chaindata ethereum
x2 bitcoin boom bitcoin check bitcoin chaindata ethereum bitcoin лохотрон coffee bitcoin bitcoin swiss ebay bitcoin 5.0uk bitcoin bitcoin pool и bitcoin fox bitcoin лотереи bitcoin android tether
Ethereum's suggested Slasher protocol allows users to 'punish' the cheater who forges on top of more than one blockchain branch.Ticker symbolXMRсоздатель bitcoin people bitcoin
bear bitcoin bitcoin journal bitcoin выиграть bitcoin команды карты bitcoin bitcoin swiss ethereum block bitcoin video bitcoin hd wei ethereum обменники bitcoin bitcoin purse
bitcoin nvidia bitcoin play bitcoin мошенничество акции ethereum bitcoin paypal
direct bitcoin ethereum упал bitcoin кошелька tether майнинг
bitcoin команды
комиссия bitcoin
monero pro шрифт bitcoin 