Investing in gold as an asset is one of the most common types of long-term investments that have shown to be profitable year after year. Investors in gold can easily buy gold in its physical form and keep it stored in a storage vault or a personal. The Digital Gold platform has come up with a new approach with it comes to investing in gold. The digital platform allow users to invest in the digital form of gold, stored in the form of a GOLD Token based on the Ethereum blockchain. This is a great way to invest in gold for those who don't want to worry about where to store the gold and what to also do with it after buying it.
Should anyone wish to see how easily it is to trade on the Digital Gold platform, kindly get more info here; https://gold.storage/en/home.
In this article of my series on Digital Gold, I wish to make a comparison between the possible profits an investor could make if he/she invest in gold compared to investing in these two popular cryptocurrencies - Bitcoin and Ethereum in the last months.
For a start, take a look at Ethereum. At this particular moment, the value of Ethereum is $226 according to CoinMarketCap. If someone had purchased Ethereum exactly one year ago, he would have paid approximately $88 per token. This is a good profit of over 65% in just a year.
About six months ago, the value of Ethereum was $245. Compared with the current price, an individual would have lost a percentage of his investment had he/she bought ETH six months ago.
Again, let’s now take a look at the maneuvers Bitcoin has made around the same time frame.
On 10th Dec 2018, the price of Bitcoin was $3,415. The current value according to CoinMarketCap is $8,581. An investment in Bitcoin one year ago would have brought the investor a profit of more than 100%.
Should we look at the value about six months ago, we would realize that one bitcoin was valued at $7,969. Such an investment would also result in a loss compared to the current price.
On the other hand, let’s take a look at how gold has also performed during the same time frame. According to data shown on MarketsInsider, the current price of gold per 1 ounce is $1,465. An investment in gold about a year ago could have resulted in a profit of 17.9% today. Which is a profit of $1,790 on a $10,000 initial investment.
Had an individual invested in gold about six months ago his portfolio would have shown a profit of exactly 10%. Which is approximately, a $1,000 profit on a $10,000 investment.
Conclusion
The price of Bitcoin has increased in the last 12 months which makes it the best performer among these three financial assets. However an investment in Bitcoin about six months ago also shows a net loss of 8.6% today. The maneuvers of Ethereum also show the following data. About a year ago, all investors in Ethereum could have made a profit of over 65% but the same investment six months ago could result in an overall negative balance of -40%. This confirms how volatile cryptocurrencies are and how significant the price fluctuations can be within a short period of time.
On the other hand, gold is considered a safe haven when it comes to investments. Especially in times of financial challenges or political instability. Gold is not as volatile as cryptocurrencies are and is well suited for institutional money. Gold is also not as volatile as Bitcoin and Ethereum were especially during the last 6 months. All statistics and charts show a 10% increase in the value of gold during a period in which Bitcoin fell by 8.6% and Ethereum by 40%. Nevertheless, investing in gold through the marketplace on the Digital Gold platform is a great gain in the long run.
For more details, kindly visit the links below;
Website: https://gold.storage/home
Whitepaper: https://gold.storage/wp.pdf
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