I’ve seen many people try and place Bitcoin and Gold at the same level, try and compare it or give reasons on why one is better than the other. I believe both are different assets and different type of investment. There seems to be a tendency to label things and to put one against the other. Crypto is a relatively new asset; its technology is revolutionary. On the other hand, gold is gold; it has always been there to invest, the history behind it makes it have a bigger audience and more approval from society, thus harder to dethrone.
“Coins containing gold appeared around 800 B.C., and the first pure gold coins were struck during the reign of King Croesus of Lydia about 300 years later. Throughout the centuries, people have continued to hold gold for various reasons. Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times.”
Cryptocurrency only dates back to 2009; not to mention its very first years it wasn’t even known by many. It has slowly gained respect in the financial world and has become a legitimate asset. I believe that investing in gold may be more of an option used by older generations. Newer generation; such as millennials I believe are moving towards crypto as a new investment opportunity and for the most part, choosing cryptocurrencies as an investment option. The reasons may be because of its decentralized system that has a better reach with the needs that many face today. Nonetheless, I believe that gold may be a good way to diversify a portfolio with an asset that has a good reputation and considered to be very secure.
Although gold is one of the oldest assets out there, it does not escape the need for modernization. One of the biggest struggle that gold faces is the purchase of it. For many investors buying gold can be a hassle transporting it overseas. I've seen it is cheaper to buy a plane ticket for someone to pick up gold and bring it back, instead of using third party services; not to mention trusting the third party to transport your purchase safely. When you think about how complex this type of precious metal can be, one can understand why new technologies such as cryptocurrencies are a good investment method; generated instantly from anywhere in the world.
I recently heard about Goldmoney:
Our mission is to make physical gold and precious metals accessible to everyone. We designed the Goldmoney Holding to provide our clients with the lowest possible prices for dealing and storage while delivering the highest level of security and transparency.”
“A Goldmoney Holding is a custodial account with allocated, segregated, and physically redeemable bullion belonging to its owner. It’s more secure than traditional accounts at a bank or investment firm, and has lower risks and costs than owning precious metals ETFs.”
Goldmoney has a “Spend or withdraw cash directly from your Holding with the Goldmoney Prepaid card." I believe this is an excellent initiative towards gold accessibility, one of the downs sides of this option is you must still rely on third-party entities to hold your money.
These are some difficulties that clients have with this Goldmoney card:
It's not a matter of dethroning anything I believe they can perfectly co-exist as investment opportunities, and people can choose to you use one or the other to have a more diverse portfolio.
I hope you enjoyed it!
By: Carolina Pérez