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Home » GOLD OR BITCOIN ? | GoldCeylon | 2023

GOLD OR BITCOIN ? | GoldCeylon | 2023

Yellow metal is valuable as a material for consumer goods such as jewelry, and it is not in abundance. Regardless of the demand, supply remains disproportionately low. Gold cannot be manufactured. A company can issue new shares, and the federal bank can print dollar bills but there is no such case with gold. It must be dug up from the ground and processed.

What speaks in favor of cryptocurrency?👇

  • Bitcoin is a blockchain-based cryptocurrency that shares some properties with gold. In fact, many have called bitcoin “digital gold” in the past due to its weak relationship with all other assets—stocks especially.
  • Like gold, there is a limited amount of Bitcoin.

Bitcoin and gold share few similarities, so their differences are not to be overlooked, particularly from a trading point of view. Gold is still regarded as a safe haven, while Bitcoin is renowned for being a particularly volatile asset. Greater volatility brings with it a need for greater risk management in the form of position sizing and well-defined stop-and-take-profit levels.

Utility as CurrencyAccepted as the medium of exchange, but no real utility as currencyNo utility as currency
StorageDigital storage (wallets)Physical storage (vaults)
Sources of DemandSpeculationWell defined

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