Gold vs. Bitcoins Which One Should You Trade In?

A person would generally want to invest their hard-earned money in safe options and would yield fruitful results. Numerous investment options are available in the financial market for the potential investor to choose from. Among the diverse options available, the most common dilemma an investor faces is whether he should invest in Gold or Bitcoins. 

Read on to know which one out of Gold and Bitcoins would be a good option to trade in.

Launched in the year 2009, Bitcoins are a form of digitized currency, which does not have any required norms from a third authority body such as banks or government. Initially, the Bitcoins attracted a few niche investors. But with its immense popularity and considering the present scenario, Bitcoins have attracted many investors. click here in this case as a preferred crypto trading platform for investors to invest in Bitcoins.

A detailed study of both Gold and Bitcoins as a medium of investment has been attempted to provide a clear picture for the potential investors.

Arguments supporting Gold as an Investment option

The first and foremost argument favoring Gold as an option for investment is the fact that it is the most valuable material used in making jewelry. Considering the Indian scenario, Gold Jewelry is often considered wealth, which usually comes to use when the need arises. 

Gold is easily liquefiable in the market. Gold is easily available to people from all economic groups- people from all social and economic groups prefer Gold. 

Gold vs. Bitcoins Which One Should You Trade In?Arguments supporting Bitcoin as an Investment option

Bitcoins are a decentralized computerized currency that a person can exchange, sell, or buy without any intermediary body such as a bank. It becomes difficult to forge any transaction or repudiate any transaction as any transaction is recorded in a public ledger whenever it takes place. Bitcoins can be converted to cash easily; there is no such prescribed procedure for converting Bitcoins to any other currency. 

Gold vs. Bitcoins- Differences

It is a well-known fact that Gold as a concept of trading is quite immaculate. It is highly regulated. It is usually purchased from an authorized dealer when considering investing in Gold. It is possible to physically buy Gold and securely store it. When it comes to Bitcoins, the regulation of this virtual currency is highly challenging. The absence of a third authoritative infrastructure cannot ensure 100% safety. Owing to its encrypted nature, it becomes difficult to forge a Bitcoin, which is quite advantageous.

Since time immemorial, Gold has had diverse utility- it can be used as a luxurious item, as currency or simply an aid whenever an unfavorable situation arises. On the other hand, Bitcoin has limited uses. It is a computerized currency, often used for making speculative investments. With the increasing market demand of Bitcoins, they are nowadays used as a preferred medium of exchange.

Gold can easily be exchanged into cash as soon as the need arises, considering the liquidity factor. One can get cash in exchange for Gold from an authorized dealer. Bitcoins are liquefiable but not as easily as Gold when it comes to Bitcoins. Numerous factors show up in the picture when it comes to cashing Bitcoins. If the price of Bitcoin is more than the daily limit, the exchange procedure can become quite a task.  

Fluctuations in the market would reduce the price of Bitcoins to a great extent, which is not observed in the scenario of Gold.

When considering divisibility, bitcoins are divisible into smaller denominations, often called satoshis. However, no such divisibility is seen when investing in Gold. It becomes quite a task to reduce Gold into smaller units.

Considering the volatility of Bitcoins and Gold, Bitcoins are far more volatile than Gold. Gold turns out to be a better option on criteria such as transparency or safety than the cryptocurrencies in general and Bitcoins in particular.


It can be inferred from the discussion that both Bitcoins and Gold have their merits and flaws when considered as a medium of investment. The final decision solely remains with the investor’s will and risk-taking ability.