Bloomberg: Investors are illogically turning towards Bitcoin and Gold

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So many thing s are taking place in the world today that it becomes hard to keep track of them all at once. Recently we’ve seen the news of the trade wars between the U.S. and China and then, on the other hand, the banning of usage of cryptocurrencies in many parts of the world has left people and the crypto exchanges disappointed.

It’s times like these when people and investors who are looking for opportunities where they can invest their money before the economy gets worse. That’s when gold investment comes in play. Investment in gold has been around for a long time, and people consider it as one of the safest investment for their money. The second option after gold investments is its close friend- Bitcoin.

Gold’s price has increased by about 7% this month, and Bitcoin has seen a growth rate of 18%. These two commodities are known to be the best way to invest your money in. Many investors have said the same thing for both the investment opportunities that they offer the prospect of sound and stable repositories of the cash at a time when bankers are busy printing money like it’s the end of the world.

However you can’t consider these as stable investment techniques as in 2018, bitcoin hit the lowest price by hitting a two-third drop of it’s worth. It’s the greed and fear or the people that causes such demands in the digital currency world.

According to Robert Mundell, it is better to invest in gold as it’s no one’s liability, and it cannot be printed. There is no central bank for bitcoin, so they point out as their supply is capped by algorithms.

As reported by Bloomberg, Gold has been here for ages, and it’ll be a part of our life in one way or the other. It’s price hit a record $1900 in 2011 but soon it came down. The market expected a longer boom so that it could relax comfortably and help people make more profits from their investments.

Every good thing comes with a risk. Bitcoin and gold might look like the best alternative right now, but there are many more things that can be added in the portfolio. Just because of the recent trends in the market moves, it’s not appropriate to give gold and bitcoin the status of “sound money.”

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Vineet Chaudhary
Vineet Chaudhary
Vineet Chaudhary is a content writer with computer applications as his background field. His interests range from writing and photography to going out for trips and rides on weekends.

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