Crypto Vs. Gold: The Case For Cryptocurrency As A Safe-Haven Asset

These days, you have the option of putting your money into something called crypto, which can be equally secure as gold, once considered the most secure store of value in times of unpredictability.

While both crypto and gold offer some degree of protection for your savings during times of economic uncertainty, the former has certain distinct advantages.

While both gold and digital currency offer some degree of protection for your savings during times of economic uncertainty, crypto has certain distinct advantages.

The Case for Crypto as a Safe Asset

Accessibility

Accessibility is the primary advantage of cryptocurrency as a safe-haven asset. Unlike gold, which necessitates physical ownership and custody, cryptocurrencies can be stored and traded online with relative ease. This feature makes it simpler for individuals to invest in cryptocurrency as a safe-haven asset, regardless of their location or investment amount.

Transparency

Gold has always been regarded as a protection against the risk of economic upheaval. However, cryptocurrencies are also gaining popularity as a risk-free investment choice. When the economy is volatile, having either gold or cryptocurrency can be a good hedge. However, there are compelling reasons why cryptocurrency storage is preferable to gold.

Image: CoinCentral

Decentralization

Crypto is less susceptible to market volatility and regulations from the government due to its decentralized nature. In contrast, market forces and government interference can make gold less stable as a safe-haven asset. During the COVID-19 pandemic, for instance, many countries implemented constraints on the gold market, resulting in a shortage of tangible gold and a price increase.

Volatility

Volatility is another attribute that makes cryptocurrency a superior safe-haven asset to gold. Some cryptocurrencies are extremely volatile, whereas others are relatively predictable. This means that consumers can select the crypto asset that best suits their risk tolerance. On the other hand, the price of gold is subject to fluctuation, which can make it challenging for investors to make decisions based on correct information.

Crypto total market cap sheds a few digits and currently at $1.23 trillion on the weekend chart at

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Author: Christian Encila

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