There must be a reason for Cryptocurrency’s sudden rise as the new era of money, the most profitable investment option, and the turning point in global economies. It is possible that something so new can race ahead of many lucrative investment options such as Gold, Forex, or Equity.
Before you make a decision to invest, it is important to critically evaluate your options. New entrants such as Bitcoin, Ethereum and Dash are making headlines daily as the best investment option. How are they so profitable commercially, what is their liquidity and what makes them more attractive than Gold, Forex and Equity? Let’s do the same!
Cryptocurrency vs. Gold
People invest in things that can save them money in the event of an economic crash. Gold is a great investment choice, with a history that spans more than 1000 years. Due to the limited supply of gold around the world, its value is also limited. This is also why it has such a high value. The value of gold is unalterable by any financial, political or natural disasters and therefore it appears to be the best choice. However, investments can be made to grow and to remain safe. A graphic representation of gold shows that growth is negligible, while stagnation is the most prominent. This graph shows that Gold is volatile due to heavy trading. It also highlights the risk of high volatility. An investor may invest in gold to preserve it, but this is not a good investment option for growth and low volatility.
A second important point to consider is that gold can be controlled and stopped by governments and authorities, limiting growth.
Cryptocurrency, on the other hand is limited and can only be created after a certain number. Altcoin volatility is high, but they don’t have a ceiling. This means that there is high potential for growth. The most promising cryptocurrencies in terms growth are Bitcoin, GDC Coin and Ethereum.
Cryptocurrency vs Forex
You need knowledge, skills and time to invest in forex. To make good profits, you must have the knowledge and time. You will need to make a minimum investment of a few hundred dollars, or more, in order to start. This will lead to slower growth than Cryptocurrency. In order to trade, you only need to have a basic understanding of trading. Altcoins require a few dollars for investment and a basic knowledge about the type of digital currency that you want. It doesn’t take much to understand trading and exchanges. This is a multi-fold growth.
Cryptocurrency vs Equity
Although Cryptocurrency and equity are a complex topic, it is possible to compare them. To understand the basics of the difference you can use the example of traditional Venture capital investments. Comparing both shows that the return horizon for VC is 7-10 year, while it is for altcoins, it is 1-5. While VC’s business model is selling products or services, the altcoins model involves creating a self-sustaining circular economy. In the case of VC, the fund currency is Fiat only. Altcoins have fiat and Cryptocurrency. As equity has a limited approach, the market approach to creative circular economies, new eco-systems and new value creation is critical for success in Cryptocurrency. Comparing the GLD ETF to the Wall Street Gold vehicle, it is clear that the volume of Bitcoin traded has actually exceeded the volume traded for GLDETF. Below is the graphic:
This shows that long-term investment should be viewed with an intention to grow faster and make better profits than Cryptocurrencies. The best options today are those which act as financial service providers, offer Forex trading services, permit Cryptocurrency trading, and can rock the market at a rapid pace. There is no longer a time when Forex, Equity and Gold were the best investment options. However, they have seen rapid growth in a short period of time, and with altcoins’ continued acceptance, it has given them the potential to be the next big thing. Don’t hesitate to invest in dynamic and young cryptocurrencies such as GDC before you make a decision to invest.