Home Tech Cryptocurrency vs Gold: Which Investment in 2021 Would Have Made You Richer?

Cryptocurrency vs Gold: Which Investment in 2021 Would Have Made You Richer?

Cryptocurrency vs Gold: Which Investment in 2021 Would Have Made You Richer?

Cryptocurrency vs Gold: Cryptocurrency trading is becoming more mainstream. And even though predicting the future of this volatile market is wild speculation, the rapid rise in the valuation of digital currencies such as Bitcoin and Dogecoin this year has caught the imagination of millennials. But there are still many who are not convinced of the long-term future of cryptocurrencies and would rather invest conservatively in assets like gold, — a traditional hedge against currency devaluation and volatility. So, what’s the better investment? Put another way, let’s see which out of these assets would have made you richer today had you invested at the beginning of this year.

Cryptocurrencies like Bitcoin and Dogecoin have created a lot of buzzes globally in recent times, and many Indian investors have also jumped on the bandwagon. Meanwhile, gold continues to move sideways.

Of late, Bitcoin has gained acceptance as a store-of-value investment because, like gold, it tends to work as a hedge against currency devaluation and volatility, say crypto market watchers.

Bitcoin, all through 2020, was being classified as “advanced gold” since it reflected the valuable metal’s direction when the worldwide economy wavered because of the continuous COVID-19 pandemic. The cryptographic money achieved a market capitalization of almost $1 trillion early in 2021 and appeared to match gold as a store of value that was probably going to see the value in considerably more after some time. In any case, at that point, the market slumped and a significant part of the increases was washed out n May this year.

On January 1 this year, Bitcoin price in India was a little over $29,300 (Rs 21.38 lakh), according to CoinMarketCap. At the time of writing this report, it was trading at around $37,600 (Rs 27.44 lakh) — a rise of nearly 30 percent despite the market crash. On the other hand, in the international market on June 3, gold prices were at $1,904.36 (roughly Rs. 1.39 lakh) per ounce.

On Tuesday (June 1), gold prices had hit their highest level since January 8 at $1,916.40 (roughly Rs. 1.39 lakh). Between January 1 and June 4, the value of gold has remained relatively static at around $1,893.66 (roughly Rs. 1.38 lakh) per ounce, according to Goldprice.org. Considering you invested Rs 10,000 in each of the two on January 1, your Bitcoin investment would have risen by 30 percent to Rs 13,000 today, but your investment in gold would have remained largely unchanged..

To make it a lot more interesting, if you had invested Rs 10,000 in the meme currency Dogecoin on January 1, your investment today, June 4, would have appreciated 100-fold. Dogecoin price in India has risen dramatically from $0.004 (roughly Rs. 0.30) on January 1 to $0.39 on June 4 (roughly Rs.28), according to CoinMarketCap. However, the recent volatility in the cryptocurrency market suggests that the status of Bitcoin and Dogecoin as viable alternatives to gold or any other traditional asset is debatable.