Imagine you have $ 100,000 and there are two options before you. You can invest them in Bitcoin or in gold, you can not combine them. The entire amount must be invested in one asset and will be locked for the next 50 years.
According to Bloomberg, the price of one ounce of gold is currently $ 1290, and according to the coinmarketcapu, one Bitcoin is $ 8106. It is fascinating that one Bitcoin was identical to one ounce of gold just 8 months ago, and today we are seeing Bitcoin 6x higher than the ounce of gold.
If you invested $ 100,000 in gold 8 months ago, today it would be worth $ 103,200. Definitely better than you put on bank savings.
Let's take a look at how it looks like you've invested in Bitcoin. At that time Bitcoin was worth as much as an ounce of gold, or $ 1249, meaning you invested $ 100,000 in Bitcoin 8 months ago, today it would have an incredible $ 648,480!
Of course, it can be said that Bitcoin is still a new investment instrument, and gold has been there for thousands of years and has a steady and secure growth. All these arguments make sense, but in this digitalization that has been happening in the last few decades, it may have come time to digitally assume the role of gold.
One of Bitcoin's key advantages over gold is the fact that its supply is fixed and limited, eliminating the fear of inflation with excessive production of this asset.
Although many think it is the same thing with gold, this is not true, the global gold reserves over the last century are increasing by 1-2% a year.
It is really hard to say if Bitcoin can still make huge pushes. I do believe it can as it still fully isn't mainstream. I would feel way more safe putting the money into Bitcoin and not touching it unless lets say bitcoin drops below $3k. Then I might just cut my losses. I see the full potential of it to at least make it to $10k which would be a pretty good profit in most likely a shortish amount of time.
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I agree with you. But also I think $10k is not the top but much much more. If we compare the capital that is currently on the market of cryptocurrency with capital that has led to dot.net balloon, we see that we still have a lot of time before the "balloon" explodes if it will at all.
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Of course, I do believe it will go way beyond $10k. I think it is almost a certain that it will hit it just by the fact its reached the $8k mark and becoming more mainstream. I am bye far no expert on this but I think its safe to say I would mostly always chose bitcoin in this situation.
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Totaly agree with you @lordsherman !
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tricky one @gegec - I love Bitcoin but who is to say that it cannot be rumbled by a new crypto...
Let me know your thoughts on our latest episode of Crypto Nights - it can be found on my blog :) we discuss the issues surrounding Bitcoin.
Upvoted.
Alex
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That’s true @alexmavor , it can, but more and more stuff stick to Bitcoin so eventually it could dominate.
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