Questions about how to best safeguard one’s investment must have, at a time heavily reflected on many minds, who want the best Store of Value. Pandemic, Natural Disaster, War, and Political Instability has inflicted inflation on many economies around the globe.
Therefore, leaving many currencies with staggering values and many investable assets in trouble. While it may look unsafe to plunge one’s investment portfolio into Agriculture, Fiats, Real Estate, due to the aforementioned reasons.
Overtimes, investors rely on the ascent value keeper; Gold due to its unwavering lucrative investment posture. Gold has a traditional role as a hedge against uncertainty and unforeseen circumstances.
However, Gold has proven to be a good chronological Store of Value, Cryptocurrency has also emerged as a young promising option. During the Pandemic Bitcoin and cryptocurrency enjoyed somewhat of a remarkable surge in value, due to its then low-interest rate.
The remarkable growth was exemplified due to the foresight of financial market investors who perceived using crypto to hedge against the pandemic-enforced inflation. For investors, Gold, and Cryptocurrency were the two life jackets during the pandemic in 2020. This development has led to a debate about which of the two is the best Store of Value.
Over the last decade, Crypto has proven to be a strong investment option for a store of value against inflation. It has recorded a tremendous growth of over 200% in market net value.
Gold vs Crypto investment option comparison
Aside from the pandemic crypto is gradually crawling into the limelight for traditional investors to invest. It is proving to be a lucrative option for investors because it has been in existence enough to acquire commendation and authorization.
Gold has been in existence for ages and it has served sufficiently due to its stability and endurance to change. This also makes Gold another lucrative option and a strong hedge against inflation.
Furthermore, Cryptocurrency is a huge industry, and it is no longer restricted to just a currency or token. Crypto’s utility and versatility have contributed to its incredible growth over the year.
Its influence can be felt across different industries and sectors across the world economy. Automobile, Finance, Real Estate, Film Making, Gaming, Virtual-Reality, Warfare, and Health Care are numerous human aspect that has felt crypto’s presence.
Thus, the foregoing has welded crypto as a major presence in the world economy. Its widespread influence across many sectors will continue to strengthen its position against Gold. Without a doubt, Gold’s influence is evident in sectors like currency, luxurious commodities, dentistry, and electronics.
Nevertheless, the advancing technological state of the world is encouraging Crypto’s growth. The constant engagement of crypto in these technological advancements is a strong backing that encourages investors to invest more.
Considering Liquidity, Gold possesses a dominant presence in terms of liquidity than Cryptocurrency. The gold value will remain undamaged irrespective of how holders trade to cash.
Meanwhile, the value of Crypto will drastically decline if holders with a voluminous portion trade their holdings for cash. Subsequently, Gold is an appealing option for investors who are willing to invest in a short-term period.
Best Store of Value
The volatility of Cryptocurrency has been a great point of worry for investors. Its fluctuating nature is a major shortcoming as the price can either rise or dip without a traceable cause. However, the Gold value is more stable and less volatile, making it a safer option for a Good Store of Value.
It is safe to invest in crypto-driven projects such as NFTs, Metaverse, and others. However, holding up to crypto as a short-term investment can be tricky, but it is safer on a long-term plan. Gold poses a good store of value because of its price and value stability, either on a lengthy-term or shorter plan.