Here Is Why Some Investors Are Moving Away from Gold and Into Crypto
Some investors are now finding Bitcoin investments more interesting than Gold. The COVID-19 pandemic has shifted the prices of Gold in a downward direction. The same pandemic turned the costs of Cryptocurrencies in an upward trend, especially Bitcoin. Most importantly, investors are now starting to build their trust in Bitcoin and other Crypto assets to meet their requirements. The shift of the interest from tangible asset to intangible asset had many reasons. Several reasons are contributing to the change on the part of the crypto-traders.
Reasons for The Shift of Interest of Investors from Gold to Crypto
The shift of interest of the investors from Gold to Cryptocurrencies are many. Therefore, let’s explore some of the key reasons why these things are happening.
1. Investors Are Moving to Digital Assets
Some investors are now more interested in investing their money in digital assets compared to that of Gold. Cryptocurrencies could lead the asset class in the upcoming decade. Yes, the chances of price fluctuations are there, but along with it, the growth rate is also historically very high. Some industry experts think that eventually, it will become one of the leading asset classes and replace tangible assets like Gold very soon.
2. Trading Volume of Bitcoin
The trading volume of Bitcoin is increasing on a year on year basis. Let’s get down to some statistics to understand the trend in a better manner. In 2015 $12 billion was the notional trading volume of the Bitcoin. In the year 2016, the trading volume of Bitcoin was $31 billion, and in the year 2017, the trading volume was $870 billion, and in 2018 the trading volume of Bitcoin was $2204 billion.
From these statistics, it is evident that the trend is upward rising, and you will get better returns in the upcoming years. On the other hand, Gold’s trading volume is declining sharply over the past few years. This is why a selection of investors are shifting their attention towards Bitcoin and feeling less interested in the Gold.
3. On Gold’s Notional Value the Price of Bitcoin Is Dependent
We are now advancing towards a digital format of currency. Many expert investors believe that Gold will lose its importance over some time. Currently, the cost of one Bitcoin is approximately about 17,000 US dollars approximately (as of 2020).
You can buy nearly anything using Bitcoin as it can be used as a medium of exchange, but you cannot purchase anything by exchanging a gold bar. Your daily necessary items you cannot purchase using the gold bars, but you can buy your essential items using Bitcoins.
It will help you to fulfill your daily requirements. In simple words, some may say that Bitcoin has a better exchange value compared to that of the Gold.
Now, the reason for the shift of the interest from Gold to Bitcoin has become clear. One interesting fact is that in recent years, the value of Bitcoin has risen high. If required, you can refer to the information on this website bitcoin apps to get a further insight into it. Therefore, you need to make your choices after doing proper research on the current market scenario. A rash decision can ruin any potential trading decision. Whatever you decide, remember that each trading decision is your own to make.
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