Bitcoin vs Gold 2019 Investment: Is Crypto a Smarter Choice than the Top Precious Metal?
It has been over a decade since Bitcoin first appeared. A long ten years of struggle, during which the crypto space went through quite a journey. Back when BTC first gained value, it was barely known, and those who did know about it — used it on the dark web for all kinds of illicit purposes. Then, the coin left the shadows and presented itself to the world, together with the rest of the crypto market.
At this point, it was 2017, and the crypto prices skyrocketed. They went so high that the entire world noticed, and even the regulators and governments around the globe were forced to acknowledge it as something that is here to stay.
Then, 2018 came, and with it, the market crash which brought BTC from $20,000 to only $3.200. After a year-long ‘crypto winter,' things appear to be changing for the better once more, and cryptos are slowly recovering, So, where does that put them at today? Are they still a worthy investment? What about tomorrow, or five years from now? The future remains uncertain, but there are some conclusions that can be drawn even now.
Investor's Thoughts On Bitcoin Today
While most people invested in the crypto space remain quite bullish, thoughts of early investors are perhaps more realistic, as they already went through the hype, as well as all kinds of different situations that crypto has gone through over the years. Self-made millionaire Daniel Ameduri, the president of Future Money Trends LCC, certainly has.
He invested in Bitcoin when it was $13 per coin, but it heard of it even earlier, when its price was only $1. Things were different back then, according to him. People were not driven by a desire to make money off of BTC, but to create a community and a future where they will no longer have to depend on banks and financial institutions. It was all about bringing forth the new currency back then.
Of course, things have changed over the years, and the enthusiasm about digital coins is much stronger today. However, greed has also grown as well, particularly since BTC price surged and made multiple early investors millionaires overnight. Along the way, blockchain technology also separated and went its own way, with giants like IBM investing in it and researching it now. On the crypto front, however, many are still trying to find which coin will be the next hit, while keeping their eye on Bitcoin at the same time.
Ameduri, on the other hand, believes that it is still too early for cryptos. They are now in a building phase, he believes, much like the internet and emails were in the early '90s. Because of that, he thinks that cryptos will still need at least 2-5 years of development to start reaching their true potential.
Of Bitcoin And Gold: What Lies In The Future?
As for Bitcoin and its future, he is uncertain what to expect. A lot of it depends on how the governments might treat it. However, he thinks it is likely that Bitcoin might become a store of value going forward, rather than a new currency for day to day use.
Most people tend to view Bitcoin this way, as they are desperate to take a step away from the banks, which are becoming more and more powerful, while they can do whatever they want with everyone's money. Meanwhile, Bitcoin provides people with the ability to own their own funds, and do with them what they want while keeping their privacy.
In that regard, Bitcoin is similar to gold, and the two are often compared against each other, as Ameduri himself confirmed. At this time, a lot of people thinks about gold as a safe investment, something with a universal value around the world.
However, there are also many who view it as yet another asset that governments are free to manipulate. Even the banks are buying it in large quantities, and no one can tell how much of it is there, in the world. Bitcoin is actually seen as a better asset to invest in, as it is a private market, which cannot be controlled by governments of banks. Further, it is capped, and there can only be a certain amount of it, ever.
Once BTC reaches its full supply and releases it into the world, that will be it. There will be no more of it to be discovered, and its value can only grow after that.
But, no matter what people choose, crypto or gold, Ameduri believes that people are simply looking for a way to get their money out of the bank and be free to do what they want with it. Banks introduced limits and control, which is something that people are simply not comfortable with. While gold is still quite attractive, as an asset which has been used throughout human history, Bitcoin has its own advantages, such as portability, resistance to manipulation, decentralization, and its digital nature.
It is hard to predict what will happen in the future, but as far as Ameduri is concerned, it is still too early for cryptocurrencies to reach their full potential, and they still need at least another year or two before their future can be more accurately predicted.