Bitcoin Vs Gold: Where Should You Invest in December?

The Bitcoin vs. Gold debate has been going on for a decade since people began taking financial freedom more seriously. With its decentralized nature, Bitcoin began challenging Gold, the worldwide popular investment option and store of value. Now, with both financial assets achieving their prime, the question gets even more serious as to which is better investment amid the rising Gold price and Bitcoin price and where to invest this December.

Bitcoin vs. Gold Investment, Which is Better?

Bitcoin has emerged as a popular investment opportunity due to its decentralized nature and high returns. More importantly, the Bitcoin price has hit the $100k mark, currently trading at $103.3K. This is a major milestone, as the token is used to trade at less than half of the current value.  On the other hand, Gold has been used for 5,000 years and has had a high demand for hundreds of years. However, Bitcoin has risen as a big competitor in the last few years, beginning the Bitcoin vs Gold investment debate. Even Fed Chair Powell asked netizens to compare Bitcoin to Gold instead of dollars.

Comparing Both These Assets Over Various Parameters

2024 has been an interesting year, where major Financial markets, including cryptocurrency and others, achieved many milestones. This brought the debate of Bitcoin vs. Gold investment and which is the right investment opportunity before the year ends. To understand this, there are four parameters to analyze and conclude which one is better.

1. Performance Overview

Both assets have achieved immense growth this year. Bitcoin achieved an ATH of $103.9k just a few hours ago. It is currently trading at $102.6k after a 132% increase in the year-to-day. Additionally, it has a market capitalization and trading volume of $2.03T and $125.97B, making it the 7th biggest asset in the world. On the other hand, Gold is the biggest asset with a market capitalization of $17.937 T. Just two months ago, Gold price achieved the ATH of $2,790, currently trading at $2,675.

Interestingly, despite Gold’s low price, its supply and usage are quite high, which gives it such a high market cap. However, Bitcoin’s limited supply of 21 Million coins is increasing investors’ interest, creating a high demand and high price. Overall, Bitcoin is leading the race in terms of growth in Bitcoin vs. Gold.

2. Key Features

Bitcoin, a digital asset, is completely different from Gold. It offers decentralization, where the asset is free from any third party, banks, or government interference. It allows cross-border transactions and does not have a physical body to store. More importantly, its supply is limited, as there is a limited amount of tokens left to mine.  This is eventually boosting the Bitcoin price.

On the other hand, Gold is a physical asset. It has been used for thousands of years. Its physical nature limits its direct transaction/ transfer, unlike Bitcoin, which can be shared with anyone, anywhere in the world, with a few clicks. However, despite that, it is accepted worldwide and has a reliable store of value. With that, even the central banks kept it stored to back their local currency’s value. Additionally, it has emotional value as it is widely used in the Jewellery and other manufacturing industries.

In this case, Bitcoin vs. Gold ends with a tie, as both assets offer irreplaceable features.

3. Demand & Future Outlook in Bitcoin Vs Gold

As the list of the key features cleared high adoption, both assets possess heavy demand worldwide. In the case of Bitcoin, the demand is driven by limited supply, Bitcoin ETF, institutional adoption, US election, outcome, and much more. It also includes the US plans to establish a Bitcoin reserve.

Interestingly, many other nations are working on the same goal. These are the main reasons behind the ongoing Bitcoin price rally. A few analysts have even claimed to see the BTC price reach $250K or even higher in the future.

On the other hand, Gold’s demand is driven by its high usage in Jewellery and other industries, its adoption by central banks for reserves, and investor’s belief in this asset. However, Gold price’s growth potential is also limited, as in 2024 alone, it only surged 31%.

Despite Gold’s long-term usage and heavy demand, Bitcoin investment won the Bitcoin vs. Gold battle in this category.

4. Volatility and Security

The crypto market possesses high volatility, which offers situations for both high returns and crashes, and Bitcoin is no exception. It often faces sudden trend reversal, leading to heavy gains or losses. As a result, it is not entirely beginner-friendly but carries higher stability and growth potential compared to the rest of the crypto tokens. In terms of security, Bitcoin transactions take place on the blockchain. This makes it transparent and free from third-party interference. However, at the same time, there are certain risks through hacks, scams, and even regulatory issues.

Such hacks and regulatory issues are not with this Gold. However, its physical nature creates storage issues and requires additional maintenance and insurance. More importantly, there are risks of stealing despite the safe storage, which makes it a tricker investment. Regardless, it has low volatility, which makes it safer than Bitcoin, but restricts its growth rate.

Where to Invest in December Between Bitcoin Vs. Gold?

Interestingly, Bitcoin and Gold investments are the best ways to beat inflation. Both these assets have some unique features, which help them to grow. More importantly, with accurate investment, they could free investors from financial burden and the Fiat trap. However, in the Bitcoin vs. Gold debate, the conclusion is challenging, as it depends on the investor’s perspective and needs from the investment. If one is looking for comparatively faster growth but is willing to take risks, Bitcoin investment is the right choice. However, at the same time, Gold is the right choice for those looking for stable and long-term investment. Additionally, there are many other criteria that an individual needs to consider before choosing the best investment between these two. On this debate, even Robert Kiyosaki commented, claiming that the number of holding counts, not the asset.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.