Gold vs Bitcoin: Which Is the Better Buy?

– Gold vs Bitcoin: In 2022, Gold has far outperformed Bitcoin (BTC).
[TRADE_PLUGIN]GOLDUSDT,BTCUSDT[/TRADE_PLUGIN]
– The collapse of FTX has caused all the cryptos to plummet, including Bitcoin.

Gold and Bitcoin prices have diverged in 2022. Bitcoin price has lost more than 60% year-to-date while gold is close to where it was at the beginning of the year. Over the past five years, gold has risen by about 43% while Bitcoin has collapsed by about 11%. So, Gold vs Bitcoin, which is a better buy?

Gold vs Bitcoin in 2022

Gold price has done modestly well in 2022. After falling to a low of $1,620 in September, gold price has recovered to about $1,800. Still, it remains 12.6% below the highest level this year. To a large extent, gold has tracked the performance of American stocks.

Bitcoin price, on the other hand, has been in a freefall, as it has erased most of its Covid gains. It has plunged from its all-time high of $67,000 to a low of $10,055.

Bitcoin is dealing with a collapse of confidence in cryptocurrencies following several catastrophic events in the industry. For example, Terra’s ecosystem collapsed in May, leading to over $40 billion in losses. Three Arrows Capital, a hedge fund closed shop.

The most recent confidence killer is the collapse of FTX and Alameda Research. As a result, many investors have either sold their BTC or moved them to private wallets in record numbers.

Why BTC may still better than gold?

Bitcoin price collapse has invalidated one of the top thesis about the coin. For a long time, Bitcoin proponents have argued that Bitcoin is a good inflation hedge. That has been untrue since BTC collapsed in a period when global inflation soared to a multi-decade high.

Still, there are several reasons why Bitcoin seems to be a better investment than gold. First, the recent panic about FTX is actually a good thing for Bitcoin and other cryptocurrencies. That’s because Sam Bankman-Fried was actually running a scam.

In his recent interviews, he has said that FTX comingled funds with Alameda Research, which is illegal. As such, the earlier FTX collapsed the better it is for the crypto ecosystem.

Closing thoughts

Further, the collapse of FTX will likely lead to sensible regulations in the crypto industry. It is believed that crypto companies could be regulated the same way in which Wall Street banks are regulated. This could include regular stress tests and better disclosures.

Finally, Bitcoin price has proven that it can emerge from major dips. In the past decade, BTC has had several 60%+ drawdowns and it always recovers. It has also proven that it can go parabolic in right conditions.

Gold, on the other hand, tends to have minimal gains. Between 1999 and now, it has risen by less than 600%. Bitcoin, on the other hand, has risen by over 7,620% from its lowest level in 2015.

Moreover, such crashes happen all the time when there is a major shift. For example, most tech stocks crashed in 2000 with bursting of the dot com bubble. Yet, many quality companies like Amazon and Alphabet flourished.

Read More:

Binance withdrawals surge due to red flags in its proof of reserves audit

How to Transfer Crypto from Binance to BTCC

What Is Futures Trading in Crypto? A Guide for Beginners

Wild Cash App by Hooked Protocol: Answer Quiz to Earn $HOOK

Hooked Protocol Price Prediction: How High Will HOOK Coin Go?

Hooked Protocol: Everything You Need to Know

When Will Pi Coin Launch: Pi Network Phase 4 Release Date

Is Pi Network Legit Or Scam: Pi Coin Real Or Fake?

Pi Coin Price Prediction 2025

Gasoline Price Prediction 2022,2030: What Will It Be In Next Five Years?

LUNA Classic Burn: Will LUNC Burn Its Supply?

Terra LUNA 2.0 vs. Luna Classic (LUNC): What Are the Differences?

Luna Classic Price Prediction: Will Luna Classic Reach $1?

CRO Crypto Price Prediction 2025: Will CRO Coin Ever Reach $1?

XLM Price Prediction: How High Can XLM Go in 2030?

ADA Cardano Price Prediction 2025, 2030

Metamask Airdrop – To Get $MASK Token For Free?

HBAR Price Prediction 2022, 2025, 2030

Best Bitcoin Casino Free Spins No Deposit 2022

Dogelon Mars Price Prediction: Is Dogelon Mars A Good Investment?