How Bitcoin and Gold Are Helping in The Fight Against Inflation
Over years we have seen different examples of economies crashing, landing many people out of jobs, and sometimes so deep in debt it becomes intolerable. This is the reason many people choose to invest in assets like gold bullions that will protect them from the deadly economic blows. Traditionally items like cocoa seed and gold were bought in abundance to secure funds for the future. But now even more as days pass by we see the increasing popularity of both bitcoin and gold among the investors of assets.
The Onset of COVID 19
At the beginning of this year, 2020 we were introduced to one of the deadliest viruses, which to date is affecting people’s lives. During this time, the world economy neared a crash and collapsed for the entire time frame of coronavirus. Many people lost their jobs and many of their businesses. This happened as outdoor organizations had to be shut and the online business survived, but with the failing economy, it became very difficult to sustain this damage.
During this time, many people resorted to purchasing assets such as bitcoins and gold. There was a fear that crept within people knocking on their doors giving them a wake-up call. When they realized that the economy is failing and soon there will be nothing left as a financial backup. Many people during this time started purchasing bitcoins and gold for withstanding the trials of crude nature.
The economy was not looking so good, and almost every day a success story being told about bitcoins owners, did attract many. This resulted in increased rates of bitcoins due to the high demand. Similarly, the traditionally gold buyers flocked in millions and secured their gold.
How will assets help fight inflation?
Assets like gold can be easily exchanged when the time comes. Investing in gold will require you to pay a handsome amount that later can be sold when the prices are high. This is one way to fight inflation by securing assets and rolling them when the time comes. When you purchase gold, you will also have to think about keeping it safe, one obvious choice is the bank vaults. But the only drawback about gold is, you can not use them for making payments in your day to day life.
On the other hand, purchasing bitcoins will help people preserve their fiat currencies and make payments with bitcoins. Bitcoins being one of the most popular cryptocurrencies will offer you several features that maximum asset classes cannot provide. During inflation when the prices are high generally the prices of digital currencies decrease. This is the time when people can buy bitcoins and store them for the future as well as make daily payments using the same. Read here about the tips to start a new business
Benefits of Bitcoin investments
During inflation, we get tensed that we will be broke and there will be nothing to save us. But the bitcoin technology has to say otherwise. Since it is a technology and can be held in the cloud it becomes easy to carry and use. Hence, even though I am low on cash I can survive using my bitcoins until I arrange some cash. Plus, as the value of bitcoin is higher than the fiat currencies’ values, you will have to pay fewer bitcoins, in terms of physical money.
Further bitcoin provides you with these benefits-
- Bitcoin can be used to send money overseas without having to pay any exchange fees.
- Bitcoin can be used as a payment method for practically buying anything from both online and offline stores.
- There are many bitcoin ATMs for withdrawing bitcoins whenever you need it.
- The payment path of bitcoins can easily be followed in the blockchain.
- The bitcoins that you own can only be accessed by your private key.
Bitcoins being new and advanced sure offers you multiple benefits, but as even it is an asset and depends on the market it is often subjected to fall. There have been many instances when the price of bitcoins has decreased at a rapid speed. But if you are willing to take the risk you can start trading today. Or take your time and choose between gold and bitcoin wisely.
Rene Bennett is a graduate of New Jersey, where he played volleyball and annoyed a lot of professors. Now as Zobuz’s Editor, he enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.