History of Gold And Its Practicality In Life:TikTok: Hot or Not Composite Images...TikTok: Hot or Not Composite Images Trend Explained
Gold has been used almost 3000 years ago. Back then gold is used as a medium to trade goods and services. The main use of gold in people’s life is in the form of jewelry but, it is used in electronics, mobiles, and cars also now.
The yellow shiny metal has been used since ancient times as a representation of wealth, love, emotion, and auspiciousness. Gold is considered an integral part to every human being. Even, the use of paper money, could not wipe away gold completely.
The acceptance of gold made it a special and valuable asset for investment. Investors use it as a store of value to diversify their portfolios so that it can back them at the time of inflation.
History of Gold
Bitcoin is introduced to society at the time when the global economy started shaking. People were facing hardships to stay trustful in the traditional banking system. The motive behind bitcoin’s invention was to provide the world with a new payment system where people do not have to trust a third party for their money.
Bitcoin facilitates the user-to-user direct transaction, with minimum transaction time with negligible cost. As a result, it is adopted by many individuals, companies, and investors. As bitcoin’s demand increases its value started rising up. Investors now can see that bitcoin like gold can also back a country’s inflation because it is completely digital and not regulated by the government. So, eventually, it has become an asset for investment.
Gold’s market cap and price structure:
Gold has a market capitalization of over 11 trillion as of May 2022. Right after the price of Gold fell off in 2019, it was pointed at $1,300 later. After that during the covid-19 pandemic when the financial market was going through a hardship, the gold’s price started increasing and reached around $2,100 in the middle of 2020. But in 2021 the economy of the world started recovering and the price of gold again dropped. But, gold’s price is overall high in comparison to the pre-pandemic price.
Bitcoin’s market cap and price structure:
Bitcoin’s market capitalization is 572 billion as of May 2022 which is very less than gold. But, bitcoin has shown a massive price movement during the pandemic. In December 2019 bitcoin price was $7,200. After that, it started increasing and reached a high price in March 2021 which is $58,000. After a sudden swing, it again reached its peak of $61,300 in October 2021. But, bitcoin’s price fell after October that year and now it is at $30,000 as of 18 May 2022.
Comparison between gold and bitcoin’s volatility:
After discussing the price structure of gold and bitcoin over the last few years we can say that bitcoin is more volatile than gold. Bitcoin’s price fluctuation is more massive than gold though, it is maintaining a good price and liquidity as a new asset.
Bitcoins Or Gold- Which One Should You Invest In?
Now, this is very tricky to say like that. Gold is undoubtedly a proven asset for good performance while bitcoin is quite new and yet not proven. Gold is definitely a backup for investors in a situation of inflation. But, as per predictors, bitcoin’s value will go high in the future. Some financial investment experts believe Bitcoin will go up to $100,000 by the end of2022. So, you can’t say that bitcoin is not an asset like gold that can back inflation.
Finally, when it comes to investing in any of these assets, you should ensure investing as much you can afford to lose. In case of Bitcoin investment, it is advised to go with a trustworthy platform with bitcoin champion for a seamless trading investment experience.