Bitcoin (BTC) or gold? For traders, the two are very different markets to focus on; Bitcoin is a peer-to-peer decentralized digital currency first ‘mined’ in 2009, while the precious metal gold, very much a tangible asset, has been highly valued for millennia.
Considering the key differences between Bitcoin, one of the major cryptocurrencies, and gold, enables traders to make informed decisions and capitalize on price movements. The main differences include volatility levels, storage procedure, and sources of demand.
There are similarities too, such as the scarcity of each — there can only be 21 million bitcoins, while there are around 180,000 tons of the major commodity gold in the world according to recent estimates. Other factors, such as Bitcoin and gold’s utility as currency, are disputed. Here we’ll look in more depth at the key differences people should consider to be ready to trade in Bitcoin or gold.
Top Differences Between Bitcoin and Gold
1. Volatility
One of the most important differences between Bitcoin and gold is the volatility of the two assets. A useful measure of volatility is the average true range (ATR), which describes how much a market moves, on average, over a specified time. The ATRs used in the charts below are from 2016, with each circled portion giving the average range of price movementover the previous 14 days.
Bitcoin and Gold’s ATR as a Percentage of Price
DIGITAL GOLD is a token compliant with the ERC20 protocol of the Ethereum infrastructure. A GOLD token provides coverage to one gram of fine investment-grade gold of 99% purity. This makes it easy to make small-sized investments in gold without the hassles of irrelevant paperwork, allowing for the instant and anonymous purchase of gold.
Since GOLD only provides coverage of the amount of gold purchased, the real gold which backs the GOLD token is physically committed to the company’s vault, hence, whenever GOLD tokens are purchased, an equivalent amount of gold is vaulted. Regular audits of GOLD and the amount of gold in the company’s vault is taken by the reputable BullionStar — a partner of the project. DIGITAL GOLD is a liquidity-provider, therefore institutional grade investors and large capital investors can make large GOLD purchases without the fear of insufficient gold supply.
Why you should purchase GOLD
GOLD provides holders with the security of purchasing gold while ensuring that tokens do not serve as just a store of value, unlike gold. GOLD holders can easily benefit from the price stability, long-term appreciation in the value of gold, as well as benefit from the use of the token for daily expenses and purchases. Some of the major benefits of the use of GOLD include:
Seamless, anonymous, and instant purchase of gold: Gone are the days of lengthy procedures and incessant paperwork just to purchase gold. Using cryptocurrencies like Bitcoin and Ether, investors can easily and instantly purchase gold through GOLD. This eliminates unnecessary third-parties while making gold ownership easy and anonymous.
Secure storage of gold: Any investor looking to invest in gold has to have appropriate storage in place in order to ensure its security. GOLD token holders need not worry about such as the physical gold is securely stored in the DIGITAL GOLD company’s vault, ensuring asset safety at all times.
Access to fraud-free global markets: The gold market is a global one with numerous governments holding gold in its reserves. The gold market which is predominantly accessible to large capital individuals and institutions is made easily accessible to all cadres of investors through GOLD.GOLD can also be used to hedge against various cryptocurrencies, providing capital security in the case of high volatility cryptocurrency market conditions due to its price stability.
How to purchase GOLD
Purchasing GOLD could not be any easier, the DIGITAL GOLD platform is a fully functional ecosystem which has its own marketplace. GOLD tokens can easily be exchanged for cryptocurrencies like Bitcoin and Ether.
The purchase and sale system is controlled by smart contracts, allowing for seamless transactions. Customer support is also readily available to assist individuals with queries and other relevant information on accessing the marketplace and other features of the platform.
In order to facilitate further liquidity for GOLD, it will be listed on more exchanges. GOLD is also available for purchase on Cryptex.
Conclusion
GOLD provides individuals looking to benefit from investing in gold with a highly liquid option which also provides them with an opportunity to leverage the benefits of blockchain technology which allows for trustless immutable transactions.
DIGITAL GOLD provides individuals with low-investment capital looking to invest in the gold and cryptocurrency markets for profits. It also creates a viable solution which facilitates the transitioning of individuals from employees to investors, enabling them to make investments and build themselves a passive source of income from the appreciation in the value of gold.
Interested in breaking free of the shackles of being an employee? Are you seeking to become a high net-worth individual? Why not find out more about DIGITAL GOLD, read the Whitepaper, or join the online community on Telegram, Twitter, or Facebook.
