Bitcoin vs. Silver: Which One Should You Invest In?
Everybody has heard a lot of hype about bitcoin, but not everybody realizes just how huge the returns on investment for investing in bitcoin have been. In 2013, a single bitcoin could be bought and sold for $100. Later on, every single one of those coins would be worth more than $60,000!
In other words, investing just $1000 in bitcoin at the right time would’ve meant enjoying an investment worth more than $600,000 just a few years later! However, there is a very real question about whether or not these kinds of gains are repeatable.
Comparing bitcoin vs. silver is not about comparing their past. It is about comparing their future. Which one will make you money if you invest in it today?
Read on to learn all about the most important factors to understand when it comes to deciding between bitcoin and silver!
Silver Is a Tried and True Investment
The pros and kinds of investing in silver are very well understood. People have been investing in silver in one way or another for literally thousands of years. Silver has also been one of the main investments ever since the beginning of the modern investment era.
Considering how long silver has been valued, we can predict that people will continue to value it in the future. Whether the economy goes up or down or society experiences incredible changes, people will still be interested in silver.
In some ways, that makes silver one of the most reliable investments out there. No matter how solid an investment seems today, it will probably not have the track record of having been valued for thousands of years under all kinds of different circumstances.
Silver Is a Hedge Against Inflation
Especially in the last couple of years, people who invested in silver have been doing very well for themselves. There are a lot of reasons for this. However, probably the largest one is inflation.
The United States dollar is experiencing an incredible rate of inflation due to the government printing huge amounts of money. Anybody with money in the bank ended up losing a lot of real purchasing power stored in that money.
In contrast, people who had silver watched the value of their silver in dollars go way up. That does not mean that the silver is actually more valuable in and of itself. However, what it doesn’t mean is that while each dollar has become worth less and less, each ounce of silver has maintained its value.
Many people think that cryptocurrency will greatly disrupt world currencies. However, if that does happen, it may mean huge increases in inflation.
That might mean that even if cryptocurrency does succeed, silver will still be the preferable investment. No matter what else happens, silver will retain its value.
Silver Has Many Practical Technological Uses
Silver can do much more than preserve its value. Its real value goes way up when people want more of it. And there are big indicators that the energy industry is going to increase its demand for silver.
In particular, solar panels require silver to function properly. Many people think of solar power as a science-fiction dream of the future. However, the numbers show that solar power is growing faster than any other kind of energy.
On top of that, technological breakthroughs are making solar power more attractive all the time. As the use of solar panels explodes, so will demand for silver. That can mean that the value of silver will go up many times over.
Bitcoin has a Track Record of Incredible Success
Bitcoin has increased its value by more than 1000-fold in the past decade. There are very few types of investments that ever achieve that. This may be some indication that bitcoin is a good investment for the future as well.
At the same time, you have to keep in mind that the bigger a currency gets, the less likely it is to grow many times over. It may still be perfectly plausible that bitcoin will increase in value 10 times over. However, for it to increase 1000-fold again, it would have to become worth more than all the major currencies on the planet!
Bitcoin Is a More Powerful Version of Currency
Some people think that bitcoin will become more valuable than traditional currencies. After all, bitcoin provides functionality that other currencies cannot compete with. Traditional currencies work to store and exchange value, and they do nothing else.
In contrast, bitcoin can potentially provide anonymity. It can be used to trade between cryptocurrencies which you can use to generate smart contracts. As demand for smart contracts increases, so may the demand for bitcoin.
On top of that, bitcoin can allow people to exchange currency from anywhere in the world. It allows people to bypass governments and other official organizations.
At the end of the day, bitcoin can do a lot of things that traditional currencies cannot. That may give it the edge to replace world currencies and greatly increase in value.
If you think that is going to happen, then bitcoin is probably a great investment. If you don’t think it will happen, it might be better to invest in silver.
The more that you compare the benefits of investing in cryptocurrency to the benefits of investing in silver, the more you might be interested in options for investing in precious metals online. The cryptocurrency market is not the only investment opportunity providing the convenience and accessibility of online investment. You can buy precious metals in general, and especially silver coins online to invest in your future.
Understand the Differences Between Bitcoin vs. Silver
We hope learning about the differences between bitcoin vs. silver has been helpful for you. Many people are still learning how to think about the new cryptocurrency investment game. In contrast, silver seems like a known entity.
However, technology is always changing, which is also creating new uses for silver. Understanding which of these options makes for a better investment can require a significant amount of study. To learn more about the latest developments in business, technology, and more, take a look through our other articles!
Hey everyone! My name is Alfred Williams and I am passionate about business and finance. I have been working and managing in these fields for over 10 years. I have expert knowledge of market strategies, financial analysis, and decision-making processes. I also have experience in consulting and budgeting. I'm excited to use my knowledge and expertise to help others achieve their goals. Follow me for the latest insights on business, finance and decision-making. Business, finance - let's get started!
Recommended For You
Were you recently injured in an accident? If so, you might be wondering, “Should I hire a personal injury lawyer?”
Do you feel like you’re not gaining a lot from looking at your bank account frequently? Does it seem like
Dealing with unexpected events, like natural disasters, is stressful. That’s why we invest in home insurance. Home insurance gives us