Will Cryptocurrency Replace Precious Metals in the Future?

Investment in precious metals

Each year the investment market is becoming more unstable and harder to predict, with world events changing currency exchange rates literally every day and every hour. However, despite the rapid development of technology and new cryptocurrencies, people still wonder if this will be the case in the near future. Today we are going to answer this question by finding out all the pros and cons of cryptocurrencies and precious metals.

Is bitcoin a new gold?

Indeed, by many accounts, cryptocurrency seems to be an attractive alternative to the traditional gold and precious metals-oriented funds. Moreover, speaking about bitcoin, it has continued to rise again during this year, reaching and surpassing $46 thousand in just a few days. And yet, now is definitely not the time to say that cryptocurrency and particularly bitcoin will finally overthrow gold from its position of the most reliable alternative investment. Despite the tremendous gains of the last year, there are too many vulnerable factors that could change the situation in a matter of seconds. 

Old but gold

First of all, the movement around the world towards recognising bitcoin as an official means of payment has just begun. After all, though we live in a fast paced world, there are also those countries who are just beginning their development. Nevertheless, PayPal has recently allowed users to buy and sell cryptocurrency, a list of goods that can be paid for directly with bitcoin. Second, bitcoin in particular remains a highly volatile currency. One day you can either significantly increase your fortune several times or lose a certain amount of your capital. This is worth considering before investing in this type of asset. In the next decade, however, many financiers are predicting that bitcoin price will rise more than twice. In contrast to cryptocurrencies, gold and silver have been leading the way in terms of stability for centuries and have gained a strong reputation as one of the main advantages of gold is the support of central banks. 

Gold has never failed, which means that even if you buy it now, you won’t lose out and you can always make a profit. Also, thanks to technology, this can now be done online. Without a doubt, here the main criteria is to deal with trusted companies only, like Pacific Precious Metals. By visiting their website you can get aware of their high quality precious metals https://www.pacificpreciousmetals.com/

Finally, gold has practical benefits both nowadays and in the future. Its value in industry and jewelry production is indisputable. The utility of gold has historically played a key role in its popularity as a means of payment and this trend is unlikely to be changed in the future.

While currently cryptocurrency is performing much better than gold, in the future investors are likely to use both methods to protect and grow their funds. Meanwhile, such instruments will generally remain relevant because central banks are in no hurry to cut down on their liquidity saturation programs, which means that they print almost unlimited amounts of money.

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Investment, Will Cryptocurrency Replace Precious Metals in the Future?

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