The Bitcoin Crash and Alternative Investments

In 2017, bitcoin saw an epic rise that lured investors into investing billions of dollars. Some people spent their entire savings and following the crash, they lost everything they’d ever accumulated.
The fall of bitcoin in 2018 led the cryptocurrency market into its largest loss ever. In the first quarter of 2018, the cryptocurrency market lost around $342 billion and by the end of 2018, the bitcoin had fallen by 80%. According to Forbes, bitcoin will crash again in 2019.
People are turning to precious metals markets as an alternative investment option. Here’s why:

Prices of precious metals don’t change drastically

Bitcoin saw a record increase in its prices that drastically fell within days and stunned investors across the globe. Prices of precious metals remain stable so they provide insurance against the unforeseen risks. They’re an ideal way to save for future because their value tends to increase significantly over time.

Their value is not dependent on market forces or institutions

Precious metals see fluctuations in price but they’re mild and not as extreme as bitcoin. According to a recent study, a single transaction wiped a thousand dollars off bitcoin value in less than an hour. The prices of precious metals are neither affected by a few transactions in the market nor determined by any regulatory authority.

They’re a reliable store of value

The fiscal policy of the U.S. is deteriorating, its global debt is rising, the US-China trade war is escalating, and the value of the U.S. Dollar is expected to decline. Under this scenario, precious metals are the most reliable investment as they don’t lose their value and their prices react inversely to the U.S. Dollar. Gold, in particular, has a rich history that makes it valuable over any other commodity as a store of value.

Precious metals are a safe investment because they don’t carry the risk of default so when instruments like stocks fall, they retain their value.

Precious metals can’t be hacked

There have been a number of cases when bitcoin was stolen by hackers because of its digital nature. If you lose the private key to bitcoin storage, you lose your investment forever. A few months ago, around 115,000 investors lost access to their cryptocurrency accounts because the owner of the cryptocurrency exchange who had all the passwords, passed away. 

Gold, on the other hand, is a tangible asset that can be stored safely. It’s a highly liquid asset that can easily be sold with its purchasing power intact.  

Looking to buy precious metals? Contact Orion Metal Exchange, a Consumer Affairs’ top-rated precious metals dealer. Their services include starting a gold IRA, secure storage options, and purchase of gold and silver coins.


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