Stability VS, Volatility: Where Gold Meets Cryptocurrencies
Stable Values or volatility?
Other than stocks and real estate,
valuable metals are also commonly used by people as a vehicle to protect their
investments.
Endearingly, their values remain mostly stable, that’s not seen as
a downside – in fact, stable value is the upside in this case.
While fiat currencies and stocks can lose
value, the world market for gold or silver generally stays the same– and in
some cases, prices can even go up during a recession. That makes it the prime
investment for those trying to protect their wealth against loss of value.
But can bitcoin take the place of gold
now? Unlike fiat money, cryptocurrency circulation is limited. As such, inflation
isn’t much of a thing there. And unlike gold, you won’t worry about physical
storage, since they’re virtual.
This has led many people to consider whether
holding cryptocurrencies, particularly bitcoin, instead of gold, is a wise
idea.
The truth is, it is a plausible
prospect. While the metals market is stable, the crypto market isn’t. In that
regard, buying cryptocurrencies is a lot more akin to buying stocks.
Why you
will enjoy price stability with gold, bitcoin, and the likes will give the
greatest value appreciation.
There’s no doubt that there’s a real
prospect for cryptocurrencies and an avid investor will recognize this. As mass
adoption happens, the expectation is that the market will bloom, at least for
most tokens.
Last Lines
In following the crypto market
trajectory so far, it is obvious that a pattern similar to stock market-traded
securities is discernible.
Seasons of highs and lows, as well as sideways and
jigsaw movements
are documented for cryptocurrencies.
The point is clear-it
is a market in the making, and this cannot be ignored.
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