This article will highlight the current debate over Bitcoin VS Gold for investors and traders. Bitcoin undoubtedly is an excellent investment option today. But it is always best to compare the crypto with a time-proven investment such as Gold. Both Bitcoin and Gold offer many benefits to investors, notwithstanding the fact gold continues to remain the foundation of money as we know it today.
Read on to find out more about Bitcoin vs Gold and learn more about the Zeta Hedged Coin Solution.
IS BITCOIN A BETTER INVESTMENT THAN GOLD?
Bitcoin, in essence, is a blockchain-based digital or virtual currency, which has some characteristics common to gold. In reality, many have labelled bitcoin as the digital gold in the history of cryptocurrency as it is connected with other financial assets, in particular, stock.
In 2017, crypto traders witnessed massive growth in the value of bitcoin when its price exceeded the value of gold. It was the first of the occasions when the price of a singular bitcoin surpassed that of gold. In the past few days, Bitcoin’s market price has exceeded US$50,000/ BTC several times. Do such price surges make Bitcoin a better investment than gold? More importantly, should traders consider investing in virtual currency or a combination of thereof?
Well gold, as we all know, will never be replaced by Bitcoin or any other cryptocurrency. Similarly, even cryptos are irreplaceable by gold. Both Bitcoin and gold will co-exist as two different investment alternatives.
While gold is regarded as the foundation of money and is highly ubiquitous today, it also holds cultural significance in many countries globally. Gold was also once the standard for printing money (the gold standard) and now stands as a store of value/security and a hedge against inflation.
On the other hand, investing in Bitcoin can be compared to moving from the ‘horse and cart’ to a ‘motor vehicle’ in the industrial revolution era.
Hence, the main hurdles for cryptocurrency to become more widely or globally acceptable (apart from the access to technology) are the issues of power, politics, banking, and general control of the old establishment.
However, this will change over time, as has been the case with the adoption of the Internet, email, smart phones, etc. Today, millions of investors around the globe engage in cryptocurrency investing to earn huge profits.
GOLD AS AN INVESTMENT
Compared to every other investment strategy, for long, medium, as well as short-term investment, Gold undoubtedly is a valuable commodity for investors, in terms of holding, storing and particularly in its pricing behaviour, which is far more stable during uncertain times, resulting in consistent demand for gold over centuries.
BITCOIN AS AN INVESTMENT
Bitcoin has evolved over the past 10 years as an extremely sought after investment for its unequalled storage of value attributes, particularly in light of its enormous growth since its launch 2009. Bitcoin and its second ranking competitor Ethereum have reached market cap of US$900 Billion and prices of US$50,000 and US$1,800 respectively, doubling in value just over the past 3 months. Both Bitcoin and Ethereum have become a viable choice as far as cryptocurrency investments are concerned. The Greyscale Ethereum and Bitcoin trusts offer a safe investment platform albeit with the enormous premium charged. Zeta Hedged Coin in contrast offers Ethereum and Bitcoin in combination with a high yield segment of gold properties with an enormous hedge component.
2021 INVESTMENT SCENARIOS
Crypto Currencies as well as Gold will continue to co-exist throughout the next decade as solid diversification asset classes. Products offering a combination thereof clearly offer a far more solid investment structure in uncertain times.
HOW ZETA COIN ACHIEVED A UNIQUE SOLUTION?
The Zeta Hedged Coin (“ZHC”) answers this major question of Bitcoin vs Gold with a hybrid concept which grants investors a unique opportunity to participate in the exciting Cryptocurrency space, whilst at the same time having their investments backed by gold reserves in the ground, significantly adding value and stability to the coin. Zeta Group Holdings Limited has been working with a team of geologists for a number of years, exploring and discovering new and unexploited Gold Bearing Channels, such as the Cardinal Channel, in geopolitically stable regions such as British Columbia, Canada.
The full potential of gold properties will be ascertained during the 2021 ‘Mining Season’, confirming a substantial amount of reserves along the gold bearing channel, expected to add in excess of 500,000 oz Gold backing to ZHC circulating supply. The smart contract on which ZHC is based holds the circulating supply of coins significantly lower than the value of the underlying gold reserves.
These gold reserves combined with the expected growth in Bitcoin and Ethereum form the backbone of the coin granting investors a significant asset backing with very limited downside, and at the same time a potentially exponential upside. The proprietary Hybrid structure embedded in the ZHC-ERC20 smart contract provides a rock-solid hedged structure for astute investors joining ZHC on the path to success.
An interesting fact is that an ounce of gold a hundred years ago (in 1921) was equal to a US$20 bill (the gold price was US$20.58 oz). Today the purchasing power of the US$20 bill is equivalent to c.US$1, while an oz of gold is worth c.US $1,800.
Given the above scenario, there is no denying that Gold today serves as a safe-haven for investors. On the other hand, Bitcoin, introduced around ten years ago, has become more mainstream in the last couple of years. Both Bitcoin and gold are limited commodities. Additionally, Gold’s assaying, as well as regulation safeguards it against theft or counterfeiting. Similarly, Bitcoin cannot be corrupted owing to its decentralized, cryptographic system, as well as complex algorithms.
As a result, more and more investors have become interested in cryptocurrency investing. Thus, investors looking to invest in a cryptocurrency backed by gold reserves can easily opt for the Zeta Hedged Coin (“ZHC”) to ensure the safety of their funds.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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