What is the internet? That question may seem silly in today’s world, but 50 years ago that was the question circulating the world. What is it? How does it work? And why would we use it? The same questions are being asked about bitcoin in today’s economy. The new cyber-currency is perplexing the world, yet is gaining ground for online transactions. And, it’s competing with traditional investment classes like gold. Investors often ask themselves, which is the better investment long term, bitcoin or gold?
Bitcoin or Gold: Wait…What is Bitcoin?
Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It is becoming a popular investment for some, but others are weary of the emerging currency.
Bitcoin – Funny Money?
Bitcoin is not backed up by any currency, standard, or authority other than its own users. Users that say there is a limit to how much bitcoin can be mined (a term for “created” ). But, in an interface where the financial exchange is as tangible as an emoticon it is hard say that the “limit” cannot or will not increase.
It’s hard to find security in something that only exist in cyberspace. Alternatively, investing in gold offers a hard, tangible assets, especially when you invest in a Gold IRA.
Protected from Government Seizure
Both bitcoin and gold offer investors a buffer from government seizure. Since bitcoin operates outside of the central banking system, the government cannot enforce forfeitures of such accounts (at least not at the time of the writing of this article). The same can be said of gold when held in Gold IRA accounts. “Physical bullion” states Michael Lingenheld of Forbes, “is also much easier to keep away from prying governments, especially when it’s outside the banking system.” With the threat of government bail-ins looming, this is a significant pro in the corner of both currencies.
Gold is Outperforming Bitcoin
As investors seeking the right venture, it only stands to reason that you would want to investigate the market performance of both bitcoin and gold. On the one hand, bitcoin looks like a great investment. Take the growing investment opportunities for the emerging Chinese middle class for example who, just this year, experienced a severe stock market hit. In this instance, bitcoin retained it’s value causing many Chinese buyers to take a serious look at the cyber-currency.
The same situation could likely occur in the states thereby presenting bitcoin as the ultimate investment. Yet, let us not discount gold which dramatically outperformed bitcoin this year. Where one ounce of gold purchased two bitcoin last year now buys four bitcoin this year. And the trend looks to be on an upward trajectory meaning the investment in gold stands to outperform bitcoin again this year.
Deciding to Invest in Bitcoin or Gold?
What it really comes down to is peace of mind. Bitcoin is elusive, but gold has always been a measure of wealth. The inherent value of the precious metal coupled with the ability to physically possess the resource makes it a clear winner for smart investors. But don’t take our word for it. See what gold investors are saying about their experience with the prized precious metal. Whatever your goals and needs are, call Landmark Capital at 877-448-2646, to give you the guidance and advise that will help you exceed your expectations.