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Should you invest in bitcoin or gold?

  • December 06 2019
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Invest

Should you invest in bitcoin or gold?

By Cameron Micallef
December 06 2019

Bitcoin is often known as digital gold, with both asset classes sharing similar characteristics, including being uncorrelated to market risks and being a natural hedge to systematic risk.

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Should you invest in bitcoin or gold?

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  • December 06 2019
  • Share

Bitcoin is often known as digital gold, with both asset classes sharing similar characteristics, including being uncorrelated to market risks and being a natural hedge to systematic risk.

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Gold is the more traditional asset class, with an established track record in acceptance and use, with disadvantages being its physical nature, it being hard to transport, hard to divide and, although it has use in electronics, it is limited in developing an intrinsic value.

By comparison, bitcoin is highly divisible, easy to transport and send and has significant scope in developing intrinsic value. 

Bitcoin and the protocol outlined by Satoshi Nakamoto are being built into a new, decentralised financial system, and the monetary value of bitcoin underwrites this cutting-edge technology.

However, it is not well understood, it has been highly volatile, there have been serious incidents of hacking, and the project faces significant hurdles as the new kid on the block.

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Analysis by Mine Digital suggested investors will choose which asset to invest in based on the investor’s personal preference.

Grant Colthup, CEO of Mine Digital, said: “Bitcoin does not have a dominant age-group and is more accessible; opening an account at Mine is easier than opening a bank account.”

However, investors unsure of whether to buy crypto assets or gold can buy a combination of both, according to the CEO.

“Once investors hold bitcoin, they can invest in other projects, including gold-backed cryptocurrencies.”

Should you invest in bitcoin or gold?
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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