Have you ever heard of Bitcoin being referred to as the digital gold? If you have (or even if you haven’t) then you may understand why this term has been created. Bitcoin is scarce, can be traded anonymously and can be sold and bought it any countries. Even more than that, Bitcoin doesn’t need to be kept physically, as gold would be, instead it is held securely on your computer.
With this in mind, it makes sense that many people believe that Bitcoin could be a potential threat to the trading of gold. But is there in any truth to this?
We don’t believe so and here are some of the reasons why we believe that Bitcoin, as good as it is, is never going to replace gold.
You can trade gold regardless of the situation
If you want to trade Bitcoin then you are going to need electricity. Which is no good if you are in the middle of a crisis, or perhaps if there is an issue with electricity around the world. The same problem does not exist if you are going to trade gold. Gold can be traded no matter what is going on with the rest of the world, which is great if you need cash and there is no WiFi or electricity to be found
Gold has so many uses
Another thing about Bitcoin compared to gold is that Bitcoin is one strict form of currency, it is not fluid and it does not have a range of uses. Gold, on the other hand, always has a use, this could be jewellery, coins or even electronics. You will be hard pressed to find someone who won’t have a need to buy the gold from you.
Gold is established already
Bitcoin is new and whilst it is on the rise, this doesn’t mean that it can really compare to where gold currently is. Trading gold has been around for some time, which means that it is incredibly established and settled. In fact, it is thought that somewhere in the region of £13.8billion of gold is physically traded in London alone on a daily basis. This means that cryptocurrencies, such as Bitcoin still has some way to go to catch up.
Bitcoin may be growing and may be a favoured investment for the millennials, however, at the moment it still has some way to go until it catches up with gold and becomes the go to investment and trading product.
If you have decided that gold is the investment that you need to make for your future, and you want to make sure that you are getting the very best price for your investment, then it makes sense to check here and see what the price of gold in the UK is currently.