Business Economics

Will cryptocurrencies be able to replace the gold today?

Recently, the dialogues about Bitcoin as the most popular impersonation of cryptocurrency are not stopping. Only those who do not follow the latest events do not speak about it, because how can you be silent about an instrument that literally turned the entire financial world? Bitcoin was nicknamed digital gold, while he surpassed real gold 5 times in price. But can we say that the BTC and its colleagues have fully ousted the gold from the investment world? Which side should we bet on?


Gold is still very popular among the investors. Firstly, it reflects the value of real money, which is a certain guarantee for those who are afraid of an ambiguity with the regulation of the cryptocurrency. Secondly, cryptocurrencies are limited in their technical capabilities, which prevents their large-scale distribution. Gold does not have such problems. In addition, gold is still considered to be the best tool for long-term savings – keeping the value of money in time, despite hyperinflation and loss of purchasing power of the national currency. Bitcoin is too volatile, it is impossible to talk about long-term investment, if it, for example, in one day on a lot of investors are not satisfied with such risks.


Do these fears have grounds? Definitely yes. But we should consider these risks only as a small obstacle to a confident victory. The history of its existence is too small, as is its credibility. Cryptocurrencies survive “teenage” period but soon comes maturity and teenagers “pimples” will be held.


Cryptocurrency regulatory issues are increasingly raised in government circles. The officials do not have any other choice but to resolve this issue more quickly. Otherwise, the whole economy will inevitably go into shadow. The volatility of Bitcoin is now really mad. It reacts very strongly to any news related to the industry. This is good news for short-term investors because you can very quickly make good money. In any case, after the establishment of a full-fledged regulation of the cryptocurrencies, this volatility will subside.


Speaking of technical difficulties, we should mention the fact that Bitcoin is the first, the most liquid and the most popular among the cryptocurrencies, but far from being technologically perfect. Every day more and more new cryptocurrencies arise. Some of them are just a pathetic copy of the giants, but others are a sure technological breakthrough. Bitcoin will rule the future world, or won’t – it does not matter! Blocking technology is the basis of a future society, and all financial analysts agree with this.


Thus, after establishing the regulation of the cryptocurrencies in the world community, we will receive a reliable, secure, growth-programmed financial system. Crypto world is not a bubble, its value becomes more and more evident day by day. Admittedly, today they can not defeat gold in long-term investment, but in the short-term, they have no equal. A very short time will pass, and the value of gold will not be so high, as money will lose its significance. As a result, in this battle cryptocurrencies will win. They will open the door to a completely new world, create completely new rules of the game. We can join this ascent, or stay behind. And what will you choose?