How is cryptocurrency digital gold for the virtual financial market?
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How is cryptocurrency digital gold for the virtual financial market?

July 22, 2022

People consider gold a stable and independent asset with a decent return on investment. If you want bitcoin trading simple and safe, visit bit-iq.de. Here you can make your trading journey much better. A cryptocurrency that went live in 2009 has been compared with gold for a long time. Bitcoin is representative of cryptocurrencies as most of them are copy models of BTC. 

Cryptocurrencies are often termed virtual or digital gold. And even countries like El Salvador tend to prefer virtual gold over actual one. However, many people are not satisfied with the low ROI that gold provides; that is why they are looking to invest more of their savings in the fast-paced digital currency market. Here are some reasons why people consider cryptocurrency virtual gold in the financial market.    

Similarities between gold and cryptocurrency!

Here are some similarities between gold and cryptocurrency: 

  • First, both are independent and do not fall under the control of any particular government. 
  • If you want to sell your products in a foreign country, gold and cryptocurrency are usually used as a facilitator.  
  • Gold and cryptocurrency cannot be easily falsified, making them secure for transactions. 

Cryptocurrency- Virtual Gold!

Firstly, gold does not have any human intervention in its value. Cryptocurrency, on the other hand, is quite volatile due to its minimal supply and limited number. When the supply of cryptocurrency is so tiny and the demand is high, then the price of it goes higher and higher that finally, it can get over $69,000 per bitcoin in 2021.    Secondly, trading in most modern forms, including gold and stocks, is costly, especially compared to even slightly smaller transactions made via blockchain technology.

Crypto currencies Vs Gold- Why Cryptocurrencies are better?

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Gold has a very high tax rate, and insurance costs are higher than those of cryptocurrencies. There are many transaction charges involved while trading in cryptocurrency, while if you want to deal in gold, you need to pay excise duty, shipping charge and import duty. The transaction charges in bitcoin are minimal compared to gold’s prices as an investment.   

Gold has a meagre rate of return when compared to the general market. It is because gold is not traded on the market, and there is no way to increase its value. Cryptocurrency, on the other hand, trades in a very flexible manner concerning rules, regulations and taxes that are constantly changing in this digital age.

One can trade it almost anywhere with low transaction charges and minimum risks.   Investment in gold also requires huge capital, whereas it may be harder to invest in cryptocurrency due to its volatility. Cryptocurrency can also have a use case for transactions like paying for a product or service, donating money for charity or investment purposes.

Gold and bitcoin are impossible to counterfeit!

The government used to put a lot of security features for currency notes and coins, but after spending some time in research, you will soon know that it is tough to fake gold or bitcoin. Therefore, these are the only safe investments in this world with high returns on investment.   

Is bitcoin rarer than gold?

Bitcoin is usually the first choice of many investors to invest in, but gold is sometimes considered a better pick. It is because Bitcoin has a limited supply and its rate of approval, while gold has an unlimited supply. It all depends on the price, which corresponds to the value of the investors.

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When people understand the aspects of the supply of bitcoin, they know why bitcoin should be considered digital gold and why people prefer investing money in cryptocurrency.  

Will Cryptocurrencies continue to dominate over gold?

Over the past years, gold has been considered a better investment option. Still, you all know that cryptocurrencies are incurring a robust technology. Gold is tough to falsify, but if you want fake cryptocurrency, then there is no way you can copy and imitate its features. Therefore, cryptocurrencies will continue to dominate over gold in the future because they are much more practical and have a faster rate of approval and low transaction and insurance costs.

Now you have an idea about the benefits that cryptocurrency offers over gold.

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