Gold has been used by almost every civilization for thousands of years. It has been the basis of almost every country and currency in the world. It supported immense empires for centuries and has been the cause of many wars. Gold has been a staple in world economies and continues that trend to this day, making it one of the most stable, safest, and prominent investments in the world.
In the past year, cryptocurrencies such as Bitcoin and Dogecoin have been gaining a lot of momentum, mainly due to their significant price increases. Although the price of cryptocurrencies, in general, has been increasing, should you invest in them when gold has been the investment standard for centuries?
Gold has always been and always will be the foundation of portfolios around the world and there are many reasons why gold makes such as strong asset to hold when compared to cryptocurrencies. Gold has many uses, from jewelry to electronics, keeping gold in demand for decades to come. Gold has a strong demand across many industries and its supply being relatively low, especially when considering some cryptocurrency miners can mine thousands of coins on an hourly basis, depending on the type of cryptocurrency. This in turn, devalues the existing value of the cryptocurrency, which is simply not feasible with gold.
Many cryptocurrencies have a strong correlation to the stock market and global currencies, while gold does not have such as correlation. An investment in gold will not decline in value once the stock market or cryptocurrencies decline. Its value is much less volatile when compared to other investments. This is also not taking into account that during turbulent economic times, the value of gold increases due to gold being a tried and tested investment, with many investors flocking to gold to safeguard their investment.
Gold is an established investment vehicle and is used for jewelry, trading, technology, and tracking for example, with increasing demand. An investment in gold has withstood the test of time, being used for investments for thousands of years. Unlike cryptocurrencies, gold is safe, less volatile, liquid, and rare. There can never be a gold alternative, a look-alike, or gold lite. Gold will always have a value around the world.