Charles Darwin’s principle on “Survival of the Fittest” also exists in currencies. Back in April, bitcoin has equaled the value of gold but now bitcoin has surpassed the value of gold in a matter of four months. Gold only rose in value to 11% while bitcoin went to over 250% in the same period. Still, gold experts believe that gold has always been more dominant than gold.
With cryptocurrencies, there are always other currencies that can topple bitcoin from its ranks so gold is said to be a more stable investment. A new currency can replace bitcoin in a matter of years while gold remains irreplaceable. In fact, gold is believed to be an asset that has been tested over time and bitcoin has a lot of catching up to do at this point.
Bitcoin, being the king of cryptocurrencies, is said to be the most valuable and popular but it remains to be dispensable as this can be replace by a cryptocurrency that has far better technology and platform. There are now over 843 crypocurrencies in circulation – anything can change. The initial combined market capitalization on cryptocurrency started at $17.5 billion this year but it has now surged to over $122 billion. Bitcoin cash also ballooned to $12 billion in just 24 hours after it was created.
This is said to be an out-of-the-box phenomenon that the value of bitcoin is built solely on public perception and demand. Experts also pointed out that gold and bitcoin cannot be compared or contested with each other. They say that these two assets are considered complementary and not in competition. These may not be both on the mainstream – the only thing that these two have in common. Cryptocurrencies are generated and driven by money while gold has been existent for thousands of years and has been incrementing in value ever since.
Experts believe though that with bitcoin or any other cryptocurrency, you can get into any of them and make some profit. While gold and bitcoin are of different worlds, both can generate money. You just have to wise with your investments and make a giveaway trade. This means once you have doubled your money, you can take out your collateral and let the rest grow.
There are many investors that focus on gold because they regard bitcoin as a bubble. In fact, they somewhat predict that it’s going to be a much bigger bubble in the coming years. 2017 has been a year of blockchain technology. This is a digitized open ledger for cryptocurrency transactions which does not need any third-party interference from financial institutions like banks or the government. The blockchain record is something innovative and many people are now attracted towards bitcoin because of the blockchain system itself.
The yellow metal or gold has always been compared with bitcoin and other digital currencies. It has created a diversified space which allows both of these assets to grow. Experts believe gold would never be replaced by bitcoin because this cryptocurrency has its own place in the universe. In fact, investing in both gold and bitcoin can take your income to greater heights.