Gold vs Bitcoin and Other Thematic Investments

 

The buzz and excitement surrounding Bitcoin since the time of its launch is staggering. It has grown significantly over the last decade. Built on blockchain technology, it has proven to be a great asset. With the rise in cryptocurrency data APIs, it is becoming easier to trade coins as well. Despite the decline in the past years, in 2024, the value of Bitcoin has increased. It is termed as digital gold and this shouldn’t come as a surprise. Its value has been increasing while that of gold has remained relatively the same.

 

So now the question is Bitcoin or gold the better option for investors? Some say that Bitcoin has replaced gold while others say it may be too early to tell. It's crucial to compare these two assets and get an idea of whether gold or Bitcoin has the upper hand. Let’s look at some key factors that will provide better insight into these assets.

 

Contents:

- Risks

- Access

- Security

- Future outlook

- Thematic investments

- Final thoughts

Risks

When it comes to returns, bitcoin is the favorable option by far. Bitcoin carries more risks. It tends to experience more price fluctuations than gold. When equity markets are failing, bitcoin tends to underperform. Other factors that may lead to poor perfect include:

- Market sentiment

- Regulatory changes

- Microeconomic events

 

Some believe that as the market grows, prices are likely to become more stable within the asset, However, Bitcoin tends to experience huge price variations. Gold on the other hand tends to be more stable. It performs well both during high inflation and when equity markets reduce. For instance, in 2022, gold outperformed the US equity markets. So it is a great option to add to a portfolio as it can cushion some losses. This explains why some investors would pick it over other assets including cryptocurrencies.

 

Access

Gold can be accessed on various platforms, from retailers to commodity markets. Each of these offers different levels of liquidity. It is also available in various forms from coins to stocks, each with a varying degree of convenience. The biggest challenge is accessing physical gold. The price tends to be higher.

 

Bitcoin has a high level of liquidity and can be accessed on various crypto exchange platforms worldwide. These operate 24/7, therefore contributing to liquidity. One factor that makes it favorable is the fact that you can buy fractional amounts at good rates. This means that more people have the chance to invest.

 

Transactions are faster, allowing you to make as many as possible. Using crypto price data APIs with websocket integration has made trading more efficient. By processing faster and cheaper transactions, the returns are higher than gold. It is good for new investors who want to trade on an international platform.

 

Security

Gold is usually stored in security deposits at banks. These not only provide a safe place away from thieves but also prevent damage. Some people also use their homes which may not be as secure as financial institutions. The biggest challenge is theft and damage if not properly secured. Aside from this, buying, selling, and transporting gold can be cumbersome.

 

Bitcoin is a digital currency, which makes it secure. It is stored offline, meaning that there are fewer risks of theft from hackers. The level of security is heavily dependent on the private keys. Once you lose a key, it is impossible to access your Bitcoin. The chances of encountering fraud are less, making transactions safer and transparent.

 

Future outlook

Bitcoin is very promising. The market value was above 39,000 USD by the end of 2023, with only a slight dip at the beginning of 2024. As blockchain technology continues growing, the same can be expected for cryptocurrency. Bitcoin like other cryptocurrencies are favorable because there isn’t a need for physical storage. It is also being used to ensure gold remains authentic. This reduces the chances of fraud. The biggest challenge remains regulatory changes. This can affect adoption.

 

The demand for gold will continue to increase. However, with the rise in digital currencies, gold's relevance is at risk. The biggest challenge is Bitcoin vying for the top position of haven asset. Young investors are likely to choose digital as opposed to traditional assets. While prices have been stable in the past, they are still influenced by economic changes.

 

Thematic investments

As global investing trends turn toward sustainability, technology, and innovation, theme investments are becoming more appealing in 2024. Green energy, AI, and biotechnology are three key theme areas:

- Green Energy and ESG: with the urgency of combating climate change and the worldwide quest for net-zero carbon emissions, green energy stocks have skyrocketed in 2024. ESG (Environmental, Social, and Governance) investing techniques have taken center stage.

- AI and automation: it dominates tech investment, particularly in areas such as automation, healthcare and finance. By 2024, the integration of AI into mainstream sectors has advanced, resulting in enormous financial inflows into AI-focused enterprises. AI Chips and Hardware are still a top choice, with their AI-powered GPUs becoming indispensable for machine learning and AI apps.

- Biotechnology in Health: gene editing, mRNA technology, and immunotherapy are all examples of quick breakthroughs in the biotech field. Biotech stocks continued to rise in 2024, propelled by advances in illness treatment and the aging global population's demand for creative healthcare solutions.

Final thoughts

It is without doubt that Bitcoin is going to continue making waves around the world. As more people adopt this currency and blockchain technology, the value will increase. Despite this, you cannot completely eliminate gold. It still remains a safe asset that is associated with fewer risks. The volatile nature of Bitcoin is its biggest disadvantage. Modern investors may opt for Bitcoin. Gold, which has been a safe haven asset for centuries remains a favorite for conservative traders. However, both of these assets are good options to add to a portfolio.

 

When you are making any trading or financial decisions, having appropriate data and tools is imperative.  This is where financial data and real-time insights allow investors to make informed decisions about whether they choose the stability of gold or the high-reward potential of Bitcoin. For example, Finage allows users to effortlessly assess assets and crypto performance, evaluate trends and confidently make strategic investments.

You can get your Real-Time and Historical Cryptocurrency Data with a free Crypto Data API key.

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