Gold or Crypto? Which One Is Better To Buy.

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By : Raam Dhakad

KYD - Personal Finance

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In today's time, some people are very confused about what should be invested in. In which to invest crypto or gold?

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With the price of bitcoin stabilizing around the $20,000 level after its volatility, traders are once again talking about bitcoin as a potential safe haven asset.

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Recently Ethereum co-founder Vitalik Buterin added fuel to the fire, suggesting on a Twitter thread that “crypto is a better bet” than gold.

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Buterin went on to explain that gold does not support the same types of "secure storage options" that are available in the digital world.

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Buterin also suggested that gold is "inconvenient" and "hard to use" when trading.

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This seems like a better argument because almost anyone can agree that sending crypto anywhere in the world is like tapping a button on their phone.

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Buterin suggested that "gold is less adopted" than crypto. About 145 million US adults say they own cryptocurrencies or have invested in crypto in the past.

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The logic of digital gold worked as long as bitcoin appears to be uncorrelated with any other asset class, meaning its price does not move in the same way as other investments.

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But look at what's happening in the financial markets right now when it comes to volatility. Almost everyone agrees that bitcoin is less volatile than it used to be.

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Secondly, bitcoin has been heavily correlated with gold for a long time now. The correlation between bitcoin and gold is at its highest point in 40 days.

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Note that Buterin did not say that "crypto is a better investment than gold." What he said was that "crypto is the better bet.

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