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Rajesh Exports MD: A bit of gold for bitcoin or gold against bitcoin?
Bitcoin vs Gold: Which is a Better Long-Term Bet?
This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.
Once the preferred currency for hitmen and druglords, it has now become the spark in every investor’s eye. Industrialist like the Rajesh Exports MD, Rajesh Mehta, are still doubtful on the subject. Bitcoin has traversed a long Styxian trench of shame to become the preferred method of investment in real estate, stocks, mutual funds, and finally gold. You can thank the millennials for coming up with the idea of turning physical assets into digital trading tokens. With Bitcoin, the bar has been lowered for the common man to enter the playing field dominated by seasoned institutional investors and high net worth players.
Gold, on the other hand, has been a historical mode of investment. One could hire Ninjas to take out the rival clans with ample investment of the highly valuable metal. But for centuries, civilizations have been experiencing storage problems with gold. Bank lockers can only support a limited amount of gold. Calls for a storage-independent solution, doesn’t it? Cryptocurrency enthusiasts have suggested Bitcoin as an answer to this problem. They have even released startups that let you invest in gold through Bitcoins.
Vaultoro is one such startup. This London-based agency offers a real-time exchange platform between gold and Bitcoins. The trading can be done sans a bank account. This might raise some eyebrows but Vaultoro issues statements that can be used for tax payments. Orebit provides gold certificates that equal a digital holding of gold ore reserves. Liquidity is achieved through peer-to-peer electronic trading.
Like the Rajesh Exports MD, American finance giant Goldman Sachs deems Bitcoins to be a dangerous investment. Bitcoins are not tangible, but are stored on computer servers, vulnerable like every other computer system. The first lesson of every ethical hacking program teaches that nothing is virtually safe. The same applies to Bitcoin wallets. Bitcoins isn’t for the everyday man as it’s a complex business only grasped by experienced businessmen. Those deep in this trade have their own agenda to swell the rate by inviting more and more investors in the fold, despite lack of their Bitcoin aptitude.
Adding its volatile price in the equation creates a recipe for disaster. The price can be manipulated easily, since Bitcoins depend on the participation of cryptocurrency enthusiasts. There’s also the huge competition from rivaling cryptocurrencies like Etherum, Ripple, Litecoin, Monero and Dash. Moreover, you cannot trace Bitcoins, so if you lose it, it’ll result in a huge loss.
The Rajesh Exports MD advise investors not to use Bitcoins as an investment asset due to its instability. As for using Bitcoin as a currency to buy gold, it can only be done once there’s a legal framework that legalizes Bitcoin as a valid currency fit for business.
Gold vs Bitcoin