One topic that has heightened emotions among the experts and the common man is if bitcoins is as good as investing in gold coins. Over the years, gold has been regarded as a hedge against inflation and is becoming a part of investor’s portfolio. While gold does thrives in inflation markets, it is not quite known if they will stand against something much more terrible. Bitcoin too is entering the mainstream and offer similar qualities of gold such as rarity and freedom from the influence of the government. Thus, the question arises, if bitcoin is a better alternative to gold coin investment?
The number of bitcoins that can be mined is 21 million while the supply of gold is increasing by 1-3% every year. Thus, in the coming years, bitcoin will offer more value compared to gold as they are in lower quantity. Since bitcoin relies on the internet to be functional, if for some reason the power grid of the country is cut off, bitcoin would be worthless. If you live in a country that has a repressive government, bitcoin are much more useful as they are easier to be transported and stored. In times of depression or social upheaval, the government can confiscate private assets. But, it is illegal to confiscate privately owned gold by law so keeping gold is much easier during these times than bitcoin.
While it is hard to declare a clear winner, both gold coins and bitcoin growth is high and the political events of a country greatly influence them. This is the reason why financial advisors recommend investing a small portion of your wealth in alternative investments such as gold coins and bitcoin to give a boost to your investment portfolio and protecting yourself from the turmoil in the financial market.