Bitcoin vs Gold: Which Investment is Best for Your Wallet?
A 2020 review returns
Trend of gold and Bitcoin
In conclusion
When an investor plans the composition of his portfolio, there is always a choice to be made between Bitcoin and gold. Because metal and cryptocurrency have similar hedging properties, limited supply and safe haven, these assets are often used to balance insignificant assets such as stocks, bonds and cash. But does one overtake the other?
A 2020 review returns
Just looking at this year’s returns, there may be reasons for both Bitcoin and gold. For example, gold rose to a record high this year, climbing to 20%, and did not experience any significant fall in March sales, falling less than 4%.
On the other hand, Bitcoin grew 61% over the year, but saw a bigger decline, more than 45% in March. Large image numbers indicate that Bitcoin has both significant risks and great rewards attached to it.
But instead of looking at the excess, let’s focus on the average. On an annual average, gold has clearly outperformed Bitcoin, due to metal stability combined with a run in the second quarter as countries began efficiently tuning their economic stimulus packages. Exclusively analyzing this parameter, of the two, gold is clearly the sole winner.
However, the massive and steady rise of the cryptocurrency following its collapse in March has resulted in bitcoin seeing the highest average wave so, in fact, bitcoin has outperformed gold in this regard.
Trend of gold and Bitcoin
Gold started the year at $ 1,521, and is now just above $ 1,900, with an annual average of $ 1.735 at the end of September, representing a 14.5% jump from the average. Bitcoin, on the other hand, started the year at $ 7,200, and now stands at $ 11,300, with an annual average of $ 8,500 at the end of September, a jump of 18.2%.
Bitcoin has been overtaking gold as an investment since May, thanks to its steady rise. Gold, on the other hand, has seen growth in the weeks between July and August, forcing its price to exceed $ 2,000, but that is not enough to catch up with cryptocurrency - here is the quote in real time.
As an investment, Bitcoin may have fallen significantly more than gold in March, pushing up to 80% below its average. However, this is more than 10% since June when recovery began, and this happened when commodity markets began to slow down and gold sank below $ 1,900.
In conclusion
The big picture could show gold as a better investment due to its strong and positive annual return and Bitcoin as a volatile (but profitable) investment due to the sharp fall of March. However, when measured against its daily swing, Bitcoin wins gold, as it has a better return on investment on average. So, carefully and cautiously check your safe shelter!
