Since the pandemic hit, investors are in the hunt for safe-haven assets that are not centralized. Other traditional assets are very volatile to the changing economic conditions, including stocks with a vast volume of investors.

The economic crisis brought about by the pandemic made BTC (Bitcoin) and Gold alternative assets as safe-haven assets.

Despite the high volatility that Bitcoin has faced, it has experienced an all-time high giving investors very high returns. Similarly, gold has been long considered a safe haven asset, especially by traditional investors. There has been a long unending war between bitcoin and gold. Recently, there was a war on Twitter with gold enthusiasts branding Bitcoin as just a speculative currency that lacks gold security features. Bitcoin fans, on the other hand, believe it is the next big thing that gold cannot be compared to.

Gold

Gold has been associated with fairy tales from back in the day, which made it associated with wealth and power. It has also been culturally associated with beauty, which is why it is used to make fancy ornaments.

It has been deemed to be a store of value and a safe hedge against fiat currencies. Some of the other valuable properties of gold are that it can be used as a means of exchange; it is a storage of value; it is durable; it is divisible and is portable. The main feature that gives it a high value is that it is scarce.

Bitcoin

It has been an associated alternative currency for millennials. It has been deemed digital gold, which is a better version of physical gold. What created a lot of spur with bitcoin is that it is based on a bitcoin blockchain, a distributed ledger with so much efficiency.

Like gold, bitcoin is also scarce since it has a market cap that cannot be surpassed. According to the bitcoin concept of Bitcoin’s founder Satoshi Nakamoto, Bitcoin’s demand will be way higher than supply in the future.

Bitcoin’s scarcity is questionable as with the vast numbers of institutional investors all wanting a share of it, it may lead to more forks in the form of altcoins. Its supply, in a way, is tagged on the number of developers working on its coding. The advantage of Bitcoin has many miners globally, which makes the system hard to hack.

With Bitcoin increasing interest, there are more investors by day, which will lead to increased demand and less supply strengthening its scarcity claim.

Bitcoin vs. Gold

The pandemic period has attracted many investors into these two. From March to December, several central banks have been on a gold-buying spree. The main countries are the US, China, Russia, and India, which accumulated 208.34 tons of gold in general. There is an additional 12.78 tons from other countries. Their idea of buying gold is a hedge against the economic and monetary crisis.

Bitcoin, on the other hand, has attracted a lot of institutional investors. They have pushed up its price as the demand is currently at an all-time high. Most Bitcoin investors are investing it for speculative purposes. The majority of them are HODLing their assets to await an increase in the value before they can sell. Most investors are also doing it long-term as they believe they will get better returns with time. With the current Bitcoin price trends, Bitcoin may hit $200,000 soon.

Bitcoin is also the leading cryptocurrency in the crypto world, giving it a lot of edges. So Bitcoin vs. gold, which is better?

Bitcoin and gold are both significant assets; it all depends on your perspective and preference. They both serve the same purpose, only that they are different.