Latest News
-
Vodafone Idea FPO: Shares To Debut Tomorrow; GMP Hints Premium Listing; Shares Slump 9% -
HUL Q4: FMCG Giant Declares 6% Fall In Net To Rs 2406 Cr, Rs 24/Share Dividend Announced -
Closing Bell: Market Ends With Gains For The 4th Straight Day; Nifty Holds Above 22,400, Banks Lead Gains -
1:10 Split, 5 Bonus, 70% Dividend: Crorepati Defene PSU Hits New High, 108605% Returns; BUY For Long Term -
Rs 55/Share Dividend Announced: Multibagger Refineries PSU Declares 72% Jump In Q4 Profit -
PayU Gets RBI's In-principle Nod To Operate As Payment Aggregator -
Rekha Jhunjhunwala Portfolio Stock Jubilant Ingrevia Hits Record High; More Upside Ahead? -
Gold Prices: 10 Grams Of 22-24 Carats Rise By Rs 9,500 To Rs 10,600 From 2024 Lows; Strategy For Buying -
JNK India IPO: Retail Investors Lead With Subscriptions On Day 2; GMP Hints Premium Listing; Check Status -
Rs 60 Dividend: Multibagger Small Cap Power Stock To Consider Dividend Again On May 2
Crypto Currency Vs Gold: Which is A Better Investment?
Bitcoin is a limited digital asset, as after the 21 million are mined (predicted to be in 2140), there will never be more Bitcoin released. This makes it similar to gold in terms of scarcity. Gold is an asset that will eventually deplete regardless of how many nuggets we capitalise. Easy mining of gold will run out by approximately 2050.
There are at least two assets that are independent from the government: crypto currencies and gold. Experts believe that, while digital assets and gold may be volatile, they both have been proven to retain monetary value. Prices of both of these assets appreciate or depreciate based on demand and supply.
In the case of fiat money, bank deposits can be depreciated due to inflation controlled by the government. Not only be depreciated, but also be withdrawn or frozen under some invented grounds.
Hedge Against inflation?
What would you say if I tell you that in 7 Years the value of Cash that you hold will become half?
Investors view bitcoin as digital gold and a hedge against inflation, expecting it to appreciate over time over-performing the current inflation rate. The same stands for Gold but it has not performed well in the past few years.
Below are 4 features that makes Bitcoin not just similar but a better asset than Gold
● Rarity: Bitcoin is rare. It cannot be created at will; there are only 21 million of them, and no one can create more. That means that no government can control it or fake it. No one is going to create more gold which will be feasible.The scarcity of gold changes depending on how much you put into finding it.
● Durability - Both bitcoins and gold are almost perfectly durable. As long as the internet operates, bitcoin will be in use. As far back as it can be traced, gold has been used to make jewelry, trade, etc.
● Divisibility - Bitcoin can be divided into individual satoshis, with 100,000,000 satoshis making up 1 BTC. Gold cannot be divided as easily or as precisely but it can be minted in smaller denominations
● They are hard to fake - Bitcoin and gold can't be counterfeited and duplicated. Bitcoin is easy to recognize and impossible to counterfeit. Gold is pretty recognizable, though it must be tested for purity under some circumstances.
Conclusion
Gold can give you insurance against inflation and overvalued stock markets. Crypto analysts and experts believe that Bitcoin is the most asymmetric investment opportunity on the face of the planet right now. The upside in investing in Bitcoin is so much higher than the potential downside, that no other investment even comes close.
Manoj Dalmia, is the Founder and Director, Proaasetz Exchange.
Disclaimer
Investing in crypto currencies is extremely risky and investors are advised caution. It also remains largely unregulated in India. Investors must therefore exercise due caution. Greynium Information Technologies Pvt Ltd the author not liable for any losses caused as a result of decisions based on the article. Investors should seek professional advise before investment.
