When deciding between investments in today’s volatile market climate, it is important to know if the money you put into an investment will still be there when you need to cash out. Bitcoins and other digital currencies offer the possibility of great financial gains in a dramatically shorter timespan than more traditional options, but do not currently offer the security needed to be a true store of wealth. Gold, on the other hand, offers the chance for gains while having a greatly reduced risk of losing the investment entirely.
Gold Prices More Stable
Gold has had its ups and downs in prices, fluctuating nearly $200 dollars an ounce over the course of a year. Bitcoin, which was introduced in 2009, has seen many spikes in price, fluctuating nearly $1000 a coin in a one year span. Although this fluctuation is an attractive feature for those looking to make a quick buck, those looking for a safe bet would be better served taking the investment with a more stable price.
Bitcoins More Likely to Be Lost or Stolen
As bitcoin use becomes more commonplace, there has been an increase in the amount of keyloggers and viruses which can be used to steal the digital currency. Once a bitcoin is stolen in this way, it is impossible for the original owner to recover the currency. In addition, if the harddrive the bitcoins are stored on crashes and there is no backup, or the owner forgets the password, the bitcoins will be lost for good.
This is of particular importance to those looking for an investment strategy who are not the most tech savvy of users. If you do not know how to use computer and internet encryption, do not regularly remember to backup your files, or often forget your passwords, then you should think carefully before investing in bitcoins.
Gold More Useful in an Emergency
Gold coins were used thousands of years before electricity or computers were in widespread use, while bitcoins require electricity and the internet to use. If you need quick money in case of an emergency, you will not be able to convert bitcoins into a spendable currency. An example of where this could be a problem is after a hurricane knocks out power in a widespread area, or if you live in a nation where the government is known to shut off access to the internet. With gold, there will almost always be someone willing to accept it, even if at a much less favorable rate than you could expect in better circumstances. For more information about buying and owning gold, go to this website.