Is Bitcoin Replacing Gold?
No. It’s not.
Let your precious metal investment team here at Royal Bull tell you the many ways that Bitcoin is not replacing gold and will never replace gold.
Bitcoin is Volatile
Although it’s a new investment opportunity, Bitcoin has already experienced a number of rises and falls that will make any investment have a heart attack or two. Worth only $0.09 USD in 2010 and as high as almost $70,000 USD in December 2021, it is on an epic slide back down as the global financial community is finally understanding that its value in the world is likely far more limited than they first assumed and hoped.
Bitcoin is Not Practical
Only a handful of businesses actually accept Bitcoin as payment, and many countries are refusing to allow it in their country. This is happening while Investors are holding onto limited Bitcoin quantities, making it difficult to transform this cryptocurrency into an effective way to use in transactions.
Bitcoin Has No Oversight
Not only can any Joe Canadian begin a cryptocurrency in their basement and give it a fake valuation, but there is no protection for cryptocurrency investors. If you invest and your money is stolen, corruptly taken or used for tax evasion purposes, good luck getting the government to join your side.
China has been one of the few countries to take a stand against cryptocurrency, and enact strict rules to protect investors.
Bitcoin Has Serious Storage and Security Issues
You can store your gold coins in a small safe in your home. If you forgot your combination, then the worst thing that would happen is you would need to crack open the safe. With Bitcoin, if you forget your password to access your investment, it is gone forever with all of its value for you.
Bitcoin is notoriously easy to steal and hackers have been known to steal billions of dollars of investments simply by knowing their way around computers.
Bitcoin is a Bust
Although Bitcoin gained interest through the COVID-19 pandemic purely because of many investors’ boredom and lack of experience, it has already seen a meteoric plunge in value that is likely not to ever recover. Recently, the price dropped a mind-boggling 26% in a single week, while its cryptocurrency cousins saw similar – or worse – results.
Sure, there are many investments that seem like a bust at first and end up being a goldmine, but we are quite confident that precious metal investing, which has millennia of history, involves metals that are loved around the world and have practical use in everyday life will outlive the digital currency best known for its stunning rise and disastrous fall.
Explore Royal Bull’s inventory of historically reliable precious metal investment opportunities currently for sale on our Canadian website.