Investing: Crypto Or Gold? Digital Gold or Physical Gold?

What is an Investment?

A wiseman... coughs...(me) once said that, An Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. The return may consist of a gain (profit) or a loss realized from the sale of a property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, or rental income, or a combination of capital gain and income. The return may also include currency gains or losses due to changes in the foreign currency exchange rates.

Investing becomes one of methods for people who want to maintain and grow more money. Talking about investing nowadays, there are many vehicles people can choose as their investment tool. Some of them are gold and crypto currency investment. Are gold and crypto the good investment for you? Well, before comparing both of them, let’s see the story of gold and crypto in investing world.
Gold and crypto investment reach its highest demand in this millennium era. Especially, when the technology is growing stronger and developing faster. It doesn’t mean that those investment tools merely bloom and get the attention from our society out of nowhere. Every story has a history, right?

What should i invest in Gold Or Crypto?

Crypto Overview

Cryptocurrency is a virtual currency that is secured by cryptography. It is a form of asset which is based on network like blockchain technology.

Many of people think that cryptocurrency occurs in 2000s era. Yes, it is true that the booming of cryptocurrency starts in 2000s. But did you know, technically cryptocurrency was established in 1980s?
It started when an American cryptographer, David Chaum invented a blinded money through blinding algorithm. By the late of 1980s, Chaum established DigiCash, a for-profit company producing currency based on the blinding algorithm in Netherlands. Later on, DigiCash start to sell only to licensed banks to avoid problems with Netherlands’ central banks. DigiCash collapsed in the late 1990s, and afterwards, software engineer, Wei Dai and friend of Chaum, Nick Szabo tried to build virtual currency but were not succeed as a means of exchange.

Decentralized does offer a new system for all but this is also a double-edged sword, Because Manipulation-Resistant makes it more volatile which makes it very risky, Compared to traditional Commodities which are regulated by a centralized entity, Cryptocurrencies are more volatile because no one controls the price and supply so vulnerable to rapid price movements, Provides investment options and Store-Of-Value with high profits but with greater risk, This is in contrast to Gold Commodities which are less volatile with price movements that are not too fast, making it the best option for Stores -Of-Value which is more stable, Broadly speaking, both have their own advantages and disadvantages and the answer itself can only be answered by each individual.

Gold Overview

Gold has become one of the favorite commodity assets for everyone, Offers a stable price with instant conversion options making it one of the most preferred store-of-value alternatives, In the last 10 years the price of Gold has continued to increase with price developments of more than 30 years. % which makes it also one of the lucrative long-term investment options, although in the last few years the Gold Market has experienced a decline due to the impact of the Covid-19 Pandemic, which is one of the factors, several things that affect the price are travel restrictions that make the mining process hampered and difficult access to physical stores for traditional investors or others make it difficult to make purchases or sales at various physical retailers, this makes Digital Assets that represent various commodities and one of them gold increase in use. Even so, Gold remains one of the best performing asset commodities in the last 20 years.

Cryptonized Gold (Digital Gold)

Digital Gold is one of the unique Blockchain Technology-based Ecosystems that offers both options in one place, the Team that designed this Ecosystem saw the potential of Blockchain Technology and therefore they implemented Gold Commodities into the Cryptocurrency market, Through their Platform everyone can buy or sell Gold in real time with a rate that is updated with the Global market so as to ensure the best rate. This ecosystem also makes it easier for the Cryptocurrency community to be able to buy gold without the need to go through various complicated processes or visit physical retailers that are vulnerable to Covid-19 transmission. With the Integration of advanced Algorithms that form the basis of the Framework Structure, They ensure the various processes are more efficient with fast time and low cost, The Integration of Price Chart Features also makes it easier for users to perform Deep-Analysis before they buy. Users can easily convert between Gold and Crypto in real time without the need to go through a centralized entity. The various processes are fully integrated with Smart-Contracts which ensure transparency and automation in real time. Through their Digital Currency that based on Ethereum Blockchain Technology (ERC-20), Providing an new Tokenization system to ensure efficiency for any transaction.

Transparency is the main goal of the team that designed Digital Gold, Each Token represents the Gold that is in the vault and users can also verify, Through the integration of Ethereum Blockchain Technology (ERC-20) users can see various transactions and the supply of Gold which is synchronized in real time with Vault Bullionstar, you can see more details here; https://gold.storage/audits

Conclusion

Until now, the usage of gold and crypto is continuing to develop among the society. Both of gold and cryptocurrency have their own concept, advantages, and disadvantages. So, is Bitcoin a good investment? Or is gold a good investment? The answer is depending on what you need and what characteristic of investment you have.
The history of the investment above can be your slight consideration in seeing crypto and gold as your future investment. Well, what interest you the most? Let me know down in the comment section!!

Thanks for reading

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