This new Gold has returned 500x, have you hopped on this wealth-making bus?

Source :Sify
Last Updated: Thu, Nov 4th, 2021, 02:52:54hrs
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It is Diwali and Dhanteras 2021... That time of the year when it is common for investors to rationalize on new decisions... Dhanteras and Diwali is not just a time for financial prosperity but also for better knowledge and spiritual well-being.

Gold, which has traditionally been the way scores of Indians invest has certainly growth through the pandemic years. For instance, 10 grams of Gold since the year 2009 has risen from an average price of $ 974 to nearly $ 2,067 (the 52 week highest for US Spot Gold). That is a meteoric rise of 112 percent.

However, the new Gold cares to do it much better. The new Gold is none other than Bitcoin which has risen from a mere dollar to $64,836 at an astounding pace of 64,000 percent.

Investors who care to build wealth mustn't ignore this wealth-making bus. However, there's much to read and understand how this money-making bus works.

WHAT IS BITCOIN:

Bitcoin is a decentralized digital currency created in January 2009. It offers the promise of lower transaction fees than traditional online payment mechanisms do, and unlike government-issued currencies, it is operated by a decentralized network. Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. There are no physical Bitcoins, only balances kept on a public ledger that everyone has transparent access to it.
BITCOIN, THE NEW GOLD?

The reasons for gold's importance in the modern economy centers on the fact that it has successfully preserved wealth throughout thousands of generations. The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation. The reason gold benefits from a declining U.S. dollar is because gold is priced in U.S. dollars globally and in general, gold is seen as a diversifying investment just like Bitcoin.

Since 2009, the inception year of Bitcoin, Gold has gone from 974$ to 2067$, total growth of 112%. Whereas in the same time Bitcoin has gone from 1$ to 64,863$ offering growth of 64000 %. Due to this alarming growth, Bitcoin has won the investors' hearts and now is the new asset investors are looking to park their money in, and this is just the start of the crypto age. Some experts believe that Bitcoin can go as high as 300,000$ in the coming 2 years, and if it reaches there it won’t be a surprise. One reason for this can be that investors around the world have started believing that BITCOIN is the new hedge against inflation and not GOLD.

Why should investors buy Cryptocurrencies like Bitcoin?

Looking at the huge growth in cryptocurrencies like Bitcoin, investors need to know why they should park some of their investments in cryptocurrencies. First, it is the most liquid crypto asset available to the masses in just a few clicks on your phone or computer. With Bitcoin reaching all-time highs and legacy financial institutions adopting cryptocurrency means that digital currencies have finally become an important part of finance and FinTech. Cryptocurrencies like Bitcoin also give investors greater choice, independence, and opportunity in their finances. Further, cryptocurrency’s decentralized, open-source nature helps eliminate the weak points of the modern banking system by bringing access directly to the investors. This makes it easier to buy, sell, store, and trade them.

How to buy Bitcoins?

Unlike Gold, there is no wastage or making charges with Bitcoins. Yes, there could be a charge with transaction fees but trading has been simplified thanks to the presence of several exchanges such as WazirX, Belfrics, Coinbase etc.

Investments can also be done via brokerages such as ours. You may have to verify your account before adding Bitcoins to your cart. Then, there's wallet service providers who offer adding Bitcoins to your wallet address.

In fact, you could also gift your near and dear ones a token in Cryptocurrency via these avenues.

These are methods which have become standardized these days and offer a safe and convenient way to shop and transact in Bitcoins.

Gold vs Bitcoin : Past Vs Future

Gold has remained a source of wealth for over a thousand years ever since mankind first stumbled upon this shiny metal.

Bitcoin is also a holder of wealth, just like Gold has been. In fact, our future generations would look at Bitcoin and call it the New Gold.

We often thank our past generations for the family gold and it is likely that our future generations would thank us for the cryptocurrencies we pass onto them.

The future of Bitcoin is uncertain while we speak now but our ancestors may have also faced a similar predicament with Gold a thousand years ago.

The high cost of Bitcoin may be unnerving for beginners but the time for Cryptocurrency has arrived and some investment in this asset is likely to grow your portfolio. I wish all a happy, safe and prosperous Dhanteras and Diwali.

Nitish Sharma is the Global CEO at TP Global FX, an online forex broking and multi-market trading agency.

Disclaimer: Views and opinions are solely that of the author and should not be construed as official view of this publication. Readers are advised to engage with the professional service of a SEBI registered financial advisor prior to dabbling in financial investments. 

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