With the vast economic shifts brought about by the pandemic in 2020, people started to look for ways to financially keep up with the changing environment. This is when Bitcoin (BTC) began to show its potential to shake up the entire global financial system in a positive way. 

Bitcoin has been around for over a decade now. Little by little, people began to understand what it is and how it works. Not long after, they discovered that it’s very much similar to gold in terms of being a safe haven asset, which is probably why many people are now interested in learning how to buy Bitcoin. 

But how did gold and BTC become very much alike? More importantly, which can better help protect your wealth from the threats of economic changes? 

A quick look at safe-haven assets

Let’s begin with gold, a chemical element that’s been historically around and sought-after for centuries. The process of obtaining tons of gold isn’t necessarily easy, which is probably why it has such a high value. To acquire gold, you have to go through tunnels and shafts where it can be extracted. It also undergoes a series of chemical processes before it is sold to the market.

For the longest time, gold is an asset that people trust to hold value because of its scarcity. But a little over 10 years ago, gold met its digital counterpart, Bitcoin. 

Bitcoin is a digital currency developed by its mysterious creator, Satoshi Nakamoto. It was introduced to the public in 2009 as a “purely peer-to-peer version of electronic cash” that lets users complete transactions without the need for any financial intermediaries.

Like gold, Bitcoin is finite. BTC supply is limited to 21 million, with 18.78 million already being minted and owned. Because of its scarcity and perceived value, many people have started to get their hands on this coin with the hopes of preserving their wealth.

Gold or Bitcoin: Which is which?

Now, it’s safe to say that these two qualify as good assets for wealth preservation. The only question left is: which one’s better? Let’s go over some important factors to help you decide.

  • Portability

If you’re looking for an asset that you can bring anytime and anywhere, Bitcoin might be your best bet. Since it works digitally, it doesn’t have a physical representation, no bills, no coins, just a digital wallet. You can easily manage, track, and store your funds in your Bitcoin wallet with just a few clicks on your smartphone or computer. Just make sure it’s connected to the Internet, then you’re good!

On the other hand, gold is a physical asset. This means you’ll need some space to store them and you can’t always bring them wherever you want, unless it’s in the form of jewelry or something tiny that can fit right into your pockets. Because it’s a precious asset, its storage has to be safe and secure, like a personal vault, for example. 

  • Trust

As we all know, gold has been around for centuries now. People from different decades and eras know it as a trusted asset of value. This is why until today, gold is still at the top of the list. Simply put, gold is tried and tested.

Bitcoin, on the flip side, came to life in 2009. And frankly, this span of existence is almost nothing compared to gold. While this currency is young and new in the financial realm, it’s been proving itself as a considerable competitor in the market.

  • Uses

Gold, one of the most coveted metals in the world, can be used in many ways. Until today, this precious metal plays a significant role in our culture and society. We use it to create the most prized things, from medals and wedding rings to pendants and a lot more. Since it’s a versatile asset, gold is used in the financial world and different industries, such as medicine, electronics, technology, and more.

Meanwhile, Bitcoin is dubbed as “Internet money.” However, apart from facilitating direct monetary transactions and serving as a means to preserve wealth, Bitcoin is also used for cheaper and faster remittances, supporting charitable efforts, making money through trading, and a whole host of others.

It’s also worth noting that getting your hands on Bitcoin is really easy. You can start with as little as 10 USD. 

How would you like to preserve your wealth?

It’s been more than a year since the pandemic started sweeping across our busy world and altering the way we spend our time. While this created chaos of every sort in our heads, this reality pushed people to explore and tap innovative solutions like Bitcoin and other cryptocurrencies to save themselves and their wealth from the overdue nightmare of the pandemic.

So, how would you like to protect your money’s value? Are you ready to take a look at what Bitcoin has to offer?