The moment some cryptocurrency faithful have been waiting for is approaching. Investors who have been waiting for Bitcoin prices to bounce back from post-bubble lows put new stock in the idea that their favorite digital currency would come to be seen as the newest “safe haven asset” – a hedge against rocky markets and recession economies. Essentially, they want Bitcoin to be the digital gold.
Buy Gold to Save Your Wealth
A time-tested investment strategy for recessions has been to buy gold to ride out the recessionary storm. Investors buy gold when they lose confidence in higher-growth assets and want to put their money somewhere safe, hence “safe haven. ”The lowest-risk way to invest in gold is usually considered gold bars and coins, physical bullion that you can self-store or keep in allocated storage. Buying coins minimizes third-party risks, which always become a heightened concern during tough economic times. Find out how to buy gold online and click here to find easy options.
Volatility Still Dominates Cryptocurrencies
While prices remain a long way from the highs that came at the end of 2017, BTC is certainly making a rebound, having broken past the $12,000 mark in early August, only to lose ground steadily afterward. What BTC’s price fluctuations mean is that even if investors see the value in cryptocurrency as an alternative asset, it remains an extremely volatile asset. In that regard, it may be more appropriate to compare crypto to the other precious metal: silver. Although Altcoins are breaking out and challenging BTC, they’re still following the biggest cryptocurrency’s patterns.
Buy Gold to Reduce Losses
Investors are rolling the dice when they buy cryptocurrency. They see the potential to make big gains, but with price fluctuations that cause crypto to lose 10% of its price in a matter of days, and no way to see how Bitcoin performs during recessions (it was first invented in 2009 and hardly on anyone’s radar), it remains a big gamble.
Compared to gold’s more recent gains, it’s clear that the safe path is the tried and tested one. Since the “inverted bond yield” news caused the Dow Jones to tailspin in early August, gold has burst through $1,550, a key resistance point that analysts targeted earlier in the year with their price predictions. Despite a later retreat, it remains a positive sign. The gold market is behaving exactly the way investors expect it to and have seen it perform in past recession. And they want to buy gold because it helps them mitigate losses in other areas – i.e., the stock market.
Why Boring Is Better for Mitigating Losses
When you want to preserve your money through the tough times, boring is good. Boring means low risk. Gold prices surge during recessions and the price gains can put a lot more money in investors’ pockets. It can fund buying into the recovery and actually earning money from a recession. The price gains won’t be as dramatic as those seen in Bitcoin, but neither will the price losses on the other side.
If you want reliability out of your portfolio, gold can provide it better than Bitcoin.