- This article discusses trends that impact crypto spaces.
- Bitcoin is taking its place as an investment option next to gold, stocks, and bonds.
- One major factor to consider is adoption by businesses and the creation of use cases.
Which is a better investment, Bitcoin or gold? Who is setting the trend in Bitcoin adoption? What factors will impact financial markets and investment opportunities in the years to come? Join us for a deep-dive discussion on all of the above.
Gold vs. Bitcoin
Gold has been a highly sought-after investment vehicle for centuries. Stocks and bonds, as well, are relatively newer investment channels that have become the norm in many global markets. There is, however, an even newer investment opportunity taking the world by storm: Bitcoin.
There are several issues at play here. Firstly, as the world slowly recovers from the COVID-19 pandemic, there are widespread fears of inflation as governments print more money to kick start the economy. The looming threat of a recession due to a year of below-average economic activity has also forced investors to look for better and more viable investment opportunities. This may be the reason why many have turned to gold and Bitcoin.
Global demand for gold actually fell in 2020, while Bitcoin, spurred by large-scale investments by blue-chip firms such as Morgan Stanley and MicroStrategy, hit an all-time high of over $60,000 per token earlier this year. While Bitcoin has since retracted in price, predictions for 2021 and beyond are overwhelmingly bullish as large institutional players slowly but surely enter the crypto space.
If you, like many other investors, are unsure about whether gold or Bitcoin is the better investment, there are a few points to keep in mind.
First, Bitcoin is highly volatile, and gold is much more stable. Investors who seek long-term gains can earn by holding gold. Those with a higher risk appetite can place some of their investment funds in Bitcoin after carefully determining what the best market entry time would be.
Second, continuing with the issue of volatility, as more and more institutional players enter the space, the use cases and adoption of Bitcoin will likely only improve and increase. This can place upward pressure on the price of Bitcoin.
Finally, note that the supply of Bitcoin is limited. If adoption continues, the price per unit must rise since there will be fewer units of Bitcoin available for trade and investment.
In short, now is a great time to think about investing in Bitcoin and exploring the investment opportunities available in the crypto and decentralized finance spaces.
The gold vs. Bitcoin debate does not occur in a vacuum. However, it is important to analyze other macro factors that can have an impact on your investment decisions today.
One of the key drivers of price is adoption. A recent survey found that over 35% of small and medium-sized businesses now accept Bitcoin for payments in the United States. A slew of reputable and globally-recognized businesses also accept it, from Burger King in limited regions to Wikipedia, Microsoft, AT&T, and a growing list of restaurant chains, service companies, manufacturers, entertainment businesses, airlines, and more. You can find a list of companies that are driving Bitcoin adoption in this article, “What Can I Buy With Crypto?”
Macro Factors Changing the Financial Landscape
The global financial system has experienced a series of far-reaching changes that set the stage for a new vision for global financial markets. This is in addition to Bitcoin’s organic growth and the slow and steady onboarding of new investors.
Two of the biggest factors driving these changes are social attitudes and the inefficiencies of traditional banking.
The world is truly a global village, and social movements, social apps, and the need for improved autonomy are driving people toward cheaper, fairer, more transparent, and more democratic modes of handling their money and investments. A need for enhanced privacy and quick, cross-border payments without the hassles of bank wires, high fees, and costly delays are also driving the move from traditional to decentralized finance.
Tied to these movements is the inherent inefficiency of traditional banking. The current banking system only caters to banked users and leaves out a significant proportion of the population, especially those in underdeveloped and marginalized communities. There is a wealth of value that can be generated if we can only provide these individuals with the tools and resources needed to participate in and contribute to financial activity, and Bitcoin and other cryptocurrencies provide a viable way for us to do that.
We are in the early innings of the Bitcoin revolution, but if we have learned anything from the past 10 years, it is that new ideas and innovations have the potential to dramatically change the way the world works for the better. Once the benefits of these ideas and innovations are understood by the masses, there is no going back, and we will embark on a new journey toward better, faster, more transparent, and more decentralized trade, exchange, and investment for all.
To start your trading journey or to learn more about the vast potential of cryptocurrencies and how decentralized, digital technologies can create value, visit Wisebitcoin today.