Choosing Between Investment in Bitcoin, Gold, and Shares

Investment principle: never enter all your money for one type of investment

One of the characteristics mentioned is that Bitcoin is like digital gold. Gold, on the other hand, is a form of investment that is very popular among a wide audience. Because of the same characteristics as gold, Bitcoin is now also seen as a form of investment. Many people start comparing Bitcoin investment vs. other investment instruments, and not a few who start to set aside some of their money to buy a bit of Bitcoin to save as an investment.

This article will discuss various forms of investment that exist today, and why Bitcoin is one of the investments chosen by investors. At the end of the article, we will also calculate the return or profit you get if you invest in shares, gold, or Bitcoin with the same amount, for more information :

Gold Investment

The value of gold basically does not go down and will tend to be more valuable every year. This is because gold has limited or limited properties. The amount of gold in the world is rare and not easy to dredge, making the value of gold remain valuable. Gold as an investment choice to maintain the value of assets, especially facing the risk of inflation. Items that can be obtained from the value of 1 gram of gold at this time will not be much different from what will be obtained in the future. Gold is seen as a good medium as a protector of wealth.

Stock Investment
Gold is an investment choice if you want to maintain the value of assets, but stocks are a good investment choice if your investment goal is to benefit from the funds you spend. NYSE growth was 15.45{e5c1eceb6f974a095e96c655de597da6f79245907995f2c015b9a3012077fffd} in 2016. This growth is rated as the 5th best in the world. Even so, the performance of each stock you choose varies. You might buy stocks with performance that is higher than the NYSE average, or maybe even lower.

Bitcoin Investment
Bitcoin is a new technology that is seen as going to revolutionize the financial world. Although Bitcoin was originally seen as a technology for payment, many people have used Bitcoin as an investment instrument because of its volatile price. Bitcoin prices at the beginning of 2016 only ranged between $ 550, but at June 2017, the price of Bitcoin reached $ 3,570

When gold is seen as a ‘protector of wealth’ and stocks as ‘wealth enhancers’, Bitcoin is seen as a combination of the two types of instruments. For example when the incident of demonetization in India and Trump’s election as US president, investors flocked to save and protect their money in the form of Bitcoin. As an enhancer of wealth, the number of traders on the Bitcoin Exchange (Bitcoin exchange) is clear evidence that Bitcoin is used as an instrument for profit.

Then, what about the comparison of the benefits of investing in gold, stocks and Bitcoin?

Throughout 2016, gold prices have increased by 9{e5c1eceb6f974a095e96c655de597da6f79245907995f2c015b9a3012077fffd}. If you buy gold using the $ 1000 you have, you will get $ 1090 if you sell your gold at the end of 2016.

Meanwhile, if you use the same amount of money in stocks, you will approximately get $ 1153 (an increase of 15.32{e5c1eceb6f974a095e96c655de597da6f79245907995f2c015b9a3012077fffd}) if you sell shares at the end of 2016. But you have to note, NYSE growth will be different from each stock that you buy. It is possible that your shares belong to stocks with the best performance (up to more than 100{e5c1eceb6f974a095e96c655de597da6f79245907995f2c015b9a3012077fffd}), or maybe the shares you buy have a lower performance than the NYSE.

In the beginning of 2016, the price of Bitcoin was opened at a price of around $ 550. If you buy Bitcoin in the beginning of 2016 as much as $ 1000, then you will get 1,818 Bitcoin. At the end of 2016, Bitcoin was closed at a price of $ 1,290 per Bitcoin. That is, you get a profit of more than 134.5{e5c1eceb6f974a095e96c655de597da6f79245907995f2c015b9a3012077fffd}.

Uncertainty and fluctuations in Bitcoin prices are interesting points for investors. Although the price of Bitcoin can drop sharply, prices can also soar even though the trend of Bitcoin each year has tended to be positive. No one can know for sure whether the performance of Bitcoin will be more positive every year, or even decrease dramatically in the future.

Bitcoin follows this high risk high return investment principle. The greater the risk or uncertainty of an asset, the greater the probability of the return obtained. This is why, Bitcoin is seen as an investment instrument that is different from other investment assets, so investors buy a bit of Bitcoin as a protector of wealth and also an increase in wealth.

In essence, the principle of investment that must be noted is never to put all your money in just one type of investment. Even though one investment looks better and tempting, you should not put all your money and property into only one investment asset. Set aside a portion of your money for other investments. Remember, the choice is yours.