If you are planning to invest, you have to be careful when choosing your money-making project. The crypto market has proven to be profitable since the start of 2021. However, should you invest in gold, which is increasingly inaccessible, or opt for cryptocurrency, which has momentum since last year?
If you are up-to-date with financial news, you might know how cryptocurrencies like Dogecoin and Bitcoin are trending recently. Individuals and institutional investors have joined the bandwagon to enjoy what the market has. On the other hand, gold maintained its sideways trend.
Bitcoin is gaining more mainstream acceptance with time. For now, you can use the asset as a store of wealth. BTC is somewhat against currency volatility and devaluation, similar to gold, market analysts suggest.
However, Gold investors step up to defend such claims. Anuj Gupta, a Commodity and Currency official, stated that gold has value in the market, generating double returns over the past year.
However, Gupta accepted that the relationship between the United States dollar and gold and bitcoin is inverse.
The cryptocurrency market has attracted individuals from various sectors, including Hollywood celebrities and prominent people like Elon Musk. With the high number of people who want to access the luxuries with this sector, you can agree that the crypto market has something for investors.
Gold has had an impressive increase in price over the last 50 years. Keep in mind that the production costs and inflation increases as the asset become deep to mine.
Bitcoin, on the other hand, has been rallying over the last decade. During its launch in 2009, you could get BTC with $0.08. The asset is now trading at over $60,000. However, that has not been without sharp ups and downs.
An industry expert agrees that cryptocurrency has had impressive returns for now. However, he advises investors to be careful with the volatility in the space.
As much as you can enjoy huge returns with cryptocurrency, keep in mind that it is unstable compared to gold. However, if you can tolerate the related risks, you can venture into the crypto market to enjoy the best profits on your investment.