Gains in bitcoin vs gold

 Bitcoin and gold both had a tremendous run up in the year 2017 which saw the token surge in value from below $1000 at the beginning of the year to $20,000 on some of the global exchanges. Gold too in the international market fared well with returns of close to 13% buoyed by favourable global cues.

In India, bitcoin returns were more or less at par with international returns but gold did not provide massive gains due to high liquidity which made its way in the equity market driven by the euphoria mainly due to good returns from it.

Volatility

Volatility is not a factor to fear in case of gold that will more likely remain range bound unless reforms produce some results otherwise.

While the year 2018 has already begun as a terrible year for bitcoins with crackdown across countries like China, mainly due to fears of investor losses and even concerns that illicit money practices may be indulged in with it.

Hedge or a safe haven asset

While gold is a safe haven against all economic and geopolitical risk and protects against uncertainities in other asset class by preserving the value in it, the case doesn't holds true for bitcoins.

In fact, it tends to be far more volatile than gold, which is why it cannot be given the tag of a safe haven asset.

Gold and bitcoins are even comparable

As they can be minted only to an extent, bitcoin experts have predefined the threshold limit for its minting. Also, demand and supply, the two market forces determine each of their prices.

Conclusion

Seeing all the above pointers and the technical backdrop of bitcoin which needs acute alertness as the same provides a security key when invested in needs to be kept intact and also the fact that bubble in it which is expected very likely can burst at anytime without prior notice even tomorrow. So, better you choose the conventional yellow metal over gold.

More so as reiterated by experts, the easing of liquidity is likely to push up gains for the Indian consumer of gold in the next half of the calendar year if not in the first half.