One recurring question among enthusiasts is whether one should buy gold, or Bitcoin. Both of these investment vehicles have their own drawbacks and advantages. The obvious answer is to hold both of them, as they are not mutually exclusive.
Michael Novogratz Weighs in
When financial experts start to rebalance their investment portfolio, there is always a reason to be rather cautious. Blindly following this advice is never a smart decision. Instead, every investor should do their own research and go with their gut feeling. Putting all of one’s eggs in the same basket is not a viable strategy in this modern day and age.
In a recent interview, analyst Michael Novogratz shared his view. Rather than recommending a diversified portfolio, he is suddenly turning bullish on Bitcoin. Many crypto enthusiasts will see this as a prominent sign. After all, claiming how Bitcoin is a safer bet for long-term investors compared to gold is a rather unusual turn of events.
Additionally, Novogratz mentions how newcomers should not invest more than 2% of their wealth in Bitcoin. The currency has proven to be a decent store of value, despite some volatile swings along the way.
Novogratz’ sentiment is echoed by Dave Portnoy. He too has suddenly shifted from precious metals to Bitcoin. Although the advice by both gentlemen is not wrong, it is not the best either. In this modern day and age, it is possible to invest in many different things. Exploring all of the different markets before making any commitment remains the best course.
Gold Still has Potential
Comparing different long-term investments is always difficult. Drawing parallels between gold and Bitcoin serves no real purpose. The one thing they have in common is how they are both capable of retaining and gaining value over longer periods of time. They are also both scarce, albeit no one really knows what the maximum supply of the precious metal will be.
Looking at both in this modern day and age, gold hasn’t lost its allure. Bitcoin is a lot “newer” and a very different creature altogether. However, no one can blame investors for being smitten by gold, and to an extent, silver. These metals have a different status in society, and one that Bitcoin has yet to attain.
Diversifying by Holding Both
Investing in any asset, commodity, or other vehicle requires diversification. There is no reason to go all-in on one investment, no matter how lucrative it may seem. Due to the global pandemic of 2020, there is no financial stability in sight. Weakening fiat currencies will fuel demand for safe havens, including precious metals and cryptocurrencies.
For those investors willing to explore both markets, Vaultoro offers an elegant solution. It is a KYC-free platform, allowing users to begin trading within a minute or less. Having access to Bitcoin, Dash, and gold creates some very interesting trading markets.
Trading on Vaultoro will give users a chance to explore crypto gains – BTC/DASH – or bet on precious metals with crypto – BTC/XAU and DASH/XAU. All of these markets can be explored with negative trading fees, thus there is no reason not to diversify one’s portfolio.
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