Digital assets have gained some hype over the last few years. Just this 2017, the computer hardware industry has been shaken up and prices for hardware started to increase due to the large demand and decreasing supply of computer parts, as people have seen potential in mining cryptocurrencies using their computers. From simple desktop computers that help process transactions years ago, things have gone crazy and mining rigs are now being built just for the sole purpose of mining cryptocurrencies.
The demand for digital assets continually increases and its prices are going up. Is the royal metal, gold now a thing of the past? Are cryptocurrency investments changing the world of business as we know it?
Cryptocurrencies are getting quite some attention from investors. Just this year, bitcoin has increased its value by a whopping 933.49% with no sign of falling back to its previous value last year. Sure, the numbers drop every once in a while, but the overall growth this year alone has been positive. Would you imagine that something worth 10 cents 8 years ago would be worth $7600 today?
Gold’s value on the other hand, has been erratic for the last 10 years, but certainly better than 10 years ago. While gold didn’t have much of an increase, the good thing about it is that gold is a physical asset and doesn’t require software or a computer to keep. You can keep gold inside a vault, your old sock drawer, or under your dining table for years and unless anybody takes it, it will remain there.
Looking at both charts, it seems like digital assets wins as a viable investment, but is it?
In a sense, cryptocurrencies wouldn’t replace gold, but they are both good investments. While there is a risk with digital assets (hacking, theft, phishing, whatever you call it), there are also risks in gold trading, as prices could drop suddenly at the blink of an eye and show no signs of growth for a couple months or so.
If you are planning to invest your money long-term (more than 2 years), I would suggest that you go with both gold and cryptocurrencies. If you are aiming for a quick exit (less than 1 year), then investing in cryptocurrencies would be a good thing, but do your research first, as you may step on a pile of digital poop if you make the wrong investment.
Rafael is a digital marketing professional and blockchain advocate from the Philippines. He is the PR & marketing director at SuchApp, founder of Upranx Digital Marketing, and a man with multiple fun and entertaining hobbies.
I am a digital marketing strategist from the Philippines. I started with humble beginnings; as an SEO specialist working for a catering company. Fast forward to a couple of years later, I have now worked with some of the biggest names in the industry and working on my own business endeavors. I am a big advocate of blockchain technology, believing that it will shape the future of technology.