Comparing Bitcoin and gold often seems futile, even though the idea rings true at the same time. Both make for excellent long-term investments, and they are anything but mutually exclusive. There is no reason to pick one over the other either.
Gold, Bitcoin, or Both?
As an investor, and particularly one with a long-term commitment plan, there is rarely any „or“ when it comes to building a portfolio. Regardless of which assets and markets one is interested in, diversification is crucial. Owning different types of assets will often yield the best results. Putting one’s eggs in the same basket can pay off, but it is usually a recipe for disaster.
As far as Bitcoin is concerned, things looked very bleak between early 2018 and early 2020. An extensive period of bearish momentum – known as „crypto winter“ drove the price to a slow as $3,500. Today, Bitcoin sits comfortably above $10,000 again, which plenty of room for future growth to be explored. The previous all-time high of just under $20,000 remains a viable long-term target. How long it will take to reach this level again, remains to be determined.
Gold had a very interesting, but a completely opposite trend. Its value has been trending higher for a while now, and ultimately culminated in a value well above the $2,000 mark. Sustaining this level has proven difficult, but there is no retrace in place either. As such, both gold and Bitcoin remain extremely well-positioned to trend higher in the coming months and years.
Stock and FX Market Outlook is Bleak
The coronavirus pandemic has shaken up most financial markets. Some may argue it has been a catalyst for gold, Bitcoin, and other safe haven assets. Even so all of these assets also saw their fair share of volatility during the first COVID-19 wave of infections.
As the number of infections rises again globally, a different market effect pops up. Stocks and other traditional markets remain volatile, whereas gold and Bitcoin show signs of resilience. More importantly, the ongoing issuance of helicopter money by central banks puts a tremendous strain on all economies globally. This has resulted in an ever-weakening US Dollar, which dictates the global monetary system.
Under the current circumstances, that situation may come to change sooner rather than later.
Hedging against this traditional market volatility remains paramount. Savings accounts may not yield any positive interest for years to come, as negative rates have slowly become the norm everywhere. Putting one’s wealth to work is crucial, especially with inflation ramping up in various regions. Long-term investments are always a solid choice in this regard.
Vaultoro Offers it all
Gaining exposure to either Bitcoin, gold, or both is a smart plan, depending on one’s personal expectations. There are no get-rich-quick markets under any circumstance. That being said, their scarcity, liquidity, and potential for appreciation are unmatched today. Both of these options are excellent additions to one’s long-term portfolio.
One way of gaining exposure to Bitcoin and gold is by using Vaultoro. This reputable company allows investors to balance their portfolio with ease. Being able to allocate more or less funds to either of these assets allows for unlimited options. All gold is secured as one’s legal property within top-tier Swiss vaults. Exploring the world of Bitcoin and gold has never been easier than it is today.