Bitcoin and Gold became synonymous with “good investment potential.” For years now, investment assets have been associated with gold. Of course, the gold standard from the years before is not likely to come back, with the stock market and central banks now leading the way, but – it’s still a worthwhile investment.

Nevertheless, even though people still put a lot of faith in gold, digital assets are crawling behind to get first place and become the universal winner of this clash. No matter what the World Gold Council or fiat currencies will tell you about how this speculative investment is prone to market downturns and can lose its intrinsic value in seconds, the past decade showed us that people are crazy about crypto. And they will probably be for a while now.

So, with gold demand only increasing and financial transactions with crypto currencies hitting all-time highs, it’s safe to say that the question of gold vs Bitcoin is solid. So, we will delve into it and see which is a better investment strategy, what can bring many investors to the asset, and what your investment portfolios should be full of. With that in mind, let’s dive into the Bitcoin vs Gold debate!

Let’s start with something that may not seem like a core concept of this debate, but definitely is – scarcity. The physical version of gold, in the form of gold bullion, is limited. There is a finite amount of gold to be found on Earth, and it seems like we will not be searching for it on other planets soon.

On the other hand, we have Bitcoins that, seemingly, would be very liquid assets, but it’s not quite true, to be honest. The amount of Bitcoin is limited to what the miners can get out of the blockchain security, so there is a fixed amount of Bitcoin that you can trade with.

Let’s then see how those two play out in comparison.

Bitcoin

Starting with Bitcoin. As the Global X  points out, Bitcoin faces comparable limitations to gold, albeit in a digital form. Instead of being governed by nature, the maximum supply of 21 million bitcoins was embedded into the protocol during its inception, safeguarded against manipulation by the principles of proof-of-work (PoW) consensus.

Like gold, uncovering untapped reserves of bitcoin involves a financially demanding process, necessitating substantial capital investment and being subject to operational constraints, such as regular adjustments to the difficulty of bitcoin mining. The convergence of a fixed total supply, coupled with the technical and financial restrictions on mining, leads to consistent and foreseeable supply schedules for both gold and bitcoin, directly contributing to their scarcity.

Of course, it’s a much more volatile investment, and we will dive into it later in the article. Nevertheless, there is a cap on what you can expect from Bitcoin, so the scarcity aspect can point to it only growing in popularity. If we reach the amount of Bitcoin we can mine, the amount will stay the same, and the price will only go up. Of course, only in the case that the global economy would allow that.

Of course, it’s a far cry, as we presume that the last Bitcoin will be mined around 2140 , so we have some time to prepare for that event.

Gold

On the other hand, we have gold. As you probably already know, the scarcity of gold is dependent on the actual amount of it in the ground. So, how much is it in the end to be mined? As BBC states, the gold production totaled 3,531 tonnes in 2019, which is 1% lower than the number from 2018, and it’s the first decline in gold production since 2008. So, is the gold mining peaking? Well, the opinions vary. For example, Hanna Brandstaetter from the World Gold Council is a skeptic.

"While the growth in mine supply may slow or decline slightly in the coming years, as existing reserves are exhausted, and new major discoveries become increasingly rare, suggesting that production has peaked may still be a little premature."

The estimates point to limited supply, and if the calculations of the US Geological Survey are correct, there is about 20%  gold to be mined  in the world. Where does it leave us in the discussion of scarcity? Well, nowhere. We will not run out of gold any time soon, and we don’t know if there will be any potential new mines. There is no reason why we would not recycle gold or even potentially create it from other sources. So, when it comes to scarcity, we will probably never see the end of gold or Bitcoin in our lifetimes.

Next up, we have the security of those assets, which is safer to operate for institutional investors but also for private people. Every financial advisor will tell you that in order to make the investment good, it needs to be secure. So, let’s see how this comparison between a yellow metal and some piece of code plays out in those terms.

Bitcoin

Starting with – Bitcoin! If you have savings in this currency, you can be pretty sure that no one will ever be able to get their hands on them. The possibility of breaching the blockchain is near 0 . Not in 2-4%, but actually near the 0% as close as possible. Like 0.000000001% of a chance.

As there are thousands of users constantly creating new security measures for the Bitcoin blockchain, you would need at least as good of a computer as those to go through all the blocks. And that, as for now, simply does not exist.

The Proof-of-Work model that the network is based on is a system that’s almost unbreakable. There is no central governing body that could be bribed to give you the backdoor access as well. Bitcoin’s value lies a lot in its safety, so it’s the reason for how much interest the creators had in ensuring securities of transactions.

Gold

Gold, on the other hand, is, well, metal. You can have it in your home, in your safe, in a bank, or wherever you would like to put it. You can keep it with you or, if you’re interested, create a gun out of gold to keep it safe. But how secure is it? Well, to be honest, not really. Compared to the practically unbreakable blockchain, someone can easily snap gold out of your fingers, and you will see nothing of it. It’s a physical item that is highly susceptible to theft, and transporting it can be dangerous, especially with more significant amounts. And also – you need to pay a lot of money to keep it safe and remain calm.

Next up, we have the volatility of both investments. Of course, it all depends on your risk tolerance. Those are like any other assets – if you would like to purchase something risky, you will have to take into account the dangers associated with this particular investment. It’s the same with the stock market, fiat currency, crypto, and gold. So, if you want a stable investment, you need to look for bonds rather than something that can fluctuate in time. So, let’s see how our contenders work in that comparison.

Bitcoin

Let’s say it upfront: Bitcoin is not a stable investment in any way that would be acceptable for the everyday user. Bitcoin has its ups and downs , and it usually comes back in the end, but we cannot guarantee that it will stay afloat forever. The price of Bitcoin usually goes up, and even after some time, people who are HODLing their Bitcoins , meaning - keeping them no matter what happens on the market. Unlike gold, though, economic growth with Bitcoin is always a win, but you cannot guarantee it. The Bitcoin transactions are different; you can lose 10% in a few days but gain it back within a week. So, if you have some nerves of steel, you may be able to get some pretty substantial gains. It’s a highly liquid asset, so you can transfer it immediately if something goes wrong.

Gold

On the other hand, we have gold, which has been a currency of its own for quite a long time . So, how does it play out when it comes to volatility? Well, to be honest, it’s one of the most stable  ways of keeping your money. Adjustable to inflation, with little to no downs, and if so, like in the case of the 2011 Gold Bubble crisis , it quickly bounces back to the original price and even goes up. In recent years, we have seen a lot of ups when it comes to gold prices, as people tend to keep their money in gold when there is some kind of crisis. Contrary to what we have seen with Bitcoin.

And finally, we have the investment potential of both investment goals. With gold, you have a long tradition of keeping your money safe and profiting. Bitcoin represents, on the other hand, an investment option that makes gold pale in comparison. You can gain a lot, but it’s not a widely accepted and historically proven way of investing, like in the case of gold. So, if you are opting for high volatility, high rewards, or steady growth – you will find something in both Bitcoin and gold. Let’s see where those roads will lead us.

Bitcoin

Starting with Bitcoin. As we have mentioned before, the investment potential of Bitcoin is significant. The cap at 21 million means that you will likely not run out of it in the foreseeable future. As it gets more and more common, you can safely say that it will be the future currency, whether it would mean an accessory position or a main one, that remains to be seen.

The cryptocurrency  market is growing,  and every step of the way, you can see people discussing it and accepting it as a payment method. So, is it a good investment potential? Well yes. During the last year only, Bitcoin was up 155% . Is it enough to say that you will not lose your money? In this case – no. As we have mentioned, crypto is still a growing market, and it’s impossible to see what will happen. Nevertheless, it seems like Bitcoin’s price will be covering much more than just an inflation hedge.

Gold

Precious metals, on the other hand, have always been a significant investment. Due to its scarcity and global acceptance, gold is and will be an excellent, steady investment. It will also be a good portfolio diversifier; its purchasing power will likely stay the same, and no blockchain technology will be able to change that fact. Nevertheless – it will not be as exceptionally growing as the cryptocurrency exchanges, but it has low volatility, so it’s always a good idea to hide from high inflation. Every crisis in history was good for gold (except the one connected to gold), so it’s always good to have a little bit of metal lying around. Physical gold is an outstanding wealth preservation, but it may not be an optimal investment opportunity for the growing markets.

So, now that we are all safe and sound, let’s talk about ways to safely acquire some coins! There are plenty of ways to accomplish that task, but there is no better, more secure, and more anonymous than Crypto Vouchers at RoyalCDKeys . With those, you can quickly get your coins with no issues, no flagging your account with crypto-related activity, only the quality product itself.

How does it work? Well, it simply adds the number of coins you want to buy as a gift card that you can redeem in your digital wallet. You can keep it or transfer those coins any time you like.

But why would I do that? – you may ask. Well, in this day and age, it seems to be that everything is getting more and more advanced; we are having less and less privacy. So, if you want to keep your investments anonymous for various reasons, getting a Crypto Voucher is the best way to do so. The operation on RoyalCDKeys will only be flagged as a gift card purchase, and in no way, shape, or form will it be connected to the crypto world. Let’s see how you can get your digital currency with no problems.

Getting a Crypto Gift Card Step-by-Step

• Create or log in to your RoyalCDKeys account;

• Buy a Crypto Voucher for the coin of your choosing;

• Next, go to Cryptovoucher.io ;

• Click “Redeem”;

• Enter the code you have just purchased;

• The number of coins you are gifted will be transferred to your cryptocurrency wallet or the gift recipient.

You must only remember to redeem this gift card within 180 days, as it will not be in use anymore after that. Just make sure that market timing is right.