Crypto vs Gold

For years the buzz around cryptocurrency has been electric. New coins appearing on a daily basis, twitter announcements, celebrity endorsers and impending financial crackdowns make the crypto market one of the most volatile markets in history.

One of the mainstays in the crypto market BitCoin. Whilst seeing the huge fluctuations we come to expect in the crypto world, is one of the major players and the household name in the sector. The value of 1 Bitcoin has accelerated to $63,000 on the same day that 1kilo of Gold his $57,385.

This stark similarity in the price comes from two very different assets. Crypto, often seen as a quick return and fast trading asset versus Gold, the mainstay of many investment portfolios and the secure store of value for times of crisis.

The volatility of the crypto market was highlighted when BitCoin crashed by approximately 30% in summer 2021, despite recovery this highlights the risks involved in this market.

The concept of the crypto market is based on removing control from a centralised authority and allowing access to anyone with a smart phone. This concept has tones of the gold market whereby anyone can sell or buy a gold coin and there is a value set for that quantity of gold. From ancient times this gold formed a currency as it does today with Crypto.

Whilst there are similarities between the crypto market and the gold market, certain fundamental differences endure. Buying and selling of Crypto is a largely a complex process of creating various wallets of differing types of crypto or different wallets for different platforms. There is little to no security from any financial institution nor backing from regulators. Recent regulatory acts by the FCA have meant that some Crypto providers such as Binance have been unable to allow withdrawal from these Crypto wallets.

In juxtaposition buying and selling gold assets could not be simpler, with the click of a mouse you can Order Physical Gold from Hatton Garden Metals. Gold that can be held, weighed and assayed, physical gold remains the store of wealth around the world can be delivered to you the next day.

….no new wallet required.