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Gold or Bitcoin?

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Anna Svahn
27 Jun 2019 | 2 min read
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Gold has recovered from levels below 1200 USD per oz since August last year and recently broke the 1350 USD level. At the same time, Bitcoin has woken up from sleep and has since December gone from just under 3,200 USD to today's levels above 12,000 USD. Bitcoin, or "the digital gold" as it is sometimes called, is discussed in several places as the future version of the precious metal that served as money for thousands of years - but can really an asset replace another and one must as an investor really choose?

Gold has recovered from levels below 1200 USD per oz since August last year and recently broke the 1350 USD level. At the same time, Bitcoin has woken up from sleep and has since December gone from just under 3,200 USD to today's levels above 12,000 USD. Bitcoin, or "the digital gold" as it is sometimes called, is discussed in several places as the future version of the precious metal that served as money for thousands of years - but can really an asset replace another and one must as an investor really choose?

Pros and cons with gold and Bitcoin

In recent years, the discussion as to whether investors should choose gold or Bitcoin as a hedge in the portfolio has increased significantly. Some argue that Bitcoin and other cryptographic currencies completely lack the type of security that gold offers while others, crypto advocates believe that gold belongs to the past and that it is Bitcoin that should be considered the future gold. Now, Grayscale Investments has recently launched the #DropGold campaign for the launch of their new product offering exposure to Bitcoin. But the question is whether it really is that simple, do we really have to choose between Bitcoin and gold?

Although Bitcoin has been called "digital gold" for a long period, there are few similarities. What is usually lifted is the limited supply. There will never be more than 21 million Bitcoin, although those who rather stand on the gold side think that this is true with modification given the ramifications made and become Bitcoin Gold or Bitcoin Cash as an example. You can always create a new crypt, you mean, but you can't create more gold.

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