Bitcoin price rises strongly, which is better between Bitcoin and gold?

According to the market data of Bitcoin trading platform OKCoin, Bitcoin's price rose rapidly today. The opening price today was 4,137 yuan. By 12:00 pm, the price of Bitcoin reached the highest point of the day at 4,330 yuan. The price fluctuated by nearly 200 yuan. Later, the price of Bitcoin fell back. As of press time, the price of Bitcoin was 4,283 yuan.

According to statistics, during the "National Day Golden Week" this year, the gold price fell below the important support of $1,300 per ounce. The gold price on the New York Mercantile Exchange fell 4.5%, the largest weekly drop in a year. The drop last Tuesday exceeded 3.3%, also the largest single-day drop since December 2013. On October 4, the spot gold price once fell below the $1,270 per ounce mark, and silver once fell below the $18 mark, a drop of more than 5%, repeatedly breaking the lowest level since the UK's Brexit referendum...

In general, the decline of gold is mainly due to the following reasons: the strengthening of the US dollar, high expectations for interest rate hikes, the sharp fall of the British pound boosting the US dollar, and the gradual tightening of loose policies by global central banks. Multiple factors have combined to suppress the continuous decline in gold prices. However, there is an old saying in the investment market, that is, there is no market that only rises and never falls, and there is no market that only falls and never rises. Therefore, if the gold price falls to a relatively low level, investment opportunities may also come quietly.

It is reported that the decline in international gold prices has further increased the trading volume of Guangzhou's gold market, and the sales of gold bars have been hot, and the enthusiasm of citizens to "buy at the bottom" has increased. The sharp drop on October 5th caused the price of gold bars in Guangzhou to immediately drop by 12 yuan/gram (the current market price is generally between 276 and 282 yuan/gram), attracting many citizens who are "grabbing gold" for investment. It is reported that in a large shopping mall in Dongshankou, Guangzhou, a familiar customer came early in the morning to buy the large-sized "kilogram" gold bars that he had long admired. He bought two, totaling 2,000 grams, with a total price of 552,000 yuan. The single-day sales volume of gold bars in many large shopping malls in Guangzhou (October 5) set a new single-day record during the "Golden Week" and also set a new single-day record in several months.

In Beijing, Beijing gold shop Caibai lowered the price of pure gold by 10 yuan/gram to 318 yuan/gram, and the price of 999 gold was also lowered by 10 yuan/gram to 321 yuan/gram. China Gold also lowered the price of pure gold jewelry by 10 yuan/gram. Lao Fengxiang lowered the price of pure gold by 6 yuan/gram on October 5. According to a person related to a gold shop in Beijing, the purchase of investment gold bars increased during the National Day holiday due to the price drop, but it was not particularly obvious. According to data from the Internet gold platform Gome Gold, during the National Day holiday, Gome Gold's online gold trading volume was nearly 500 kilograms, an increase of 41.3% over the week before the holiday.

In Shanghai, sales staff of China Gold said that China Gold launched preferential measures during the National Day period. The quoted price of gold jewelry and craft gold bars was 35 yuan per gram lower than before. The market sales volume increased, but many consumers were tourists from other places.

For any investor, they hope to buy at the bottom. In this way, there will be more opportunities for future increases and more opportunities for profit. But the key is that you don’t know whether the current gold price is in the middle of a decline or has reached the bottom. Of course, the aunts also don’t know the future trend of gold prices.

As an asset allocation, judging from the market performance of more mature economies, including the returns of various assets, allocating gold is still a good investment option. However, in rapidly developing economies, the returns of gold are not outstanding compared to other emerging assets.

Goldman Sachs' report said, "China's demand for gold investment is expected to heat up, especially from medium- and long-term asset allocators." As we all know, it is right to allocate some gold assets in the entire asset portfolio, because everyone's ability has an upper limit. In the era of credit currency, the nature of gold as a general equivalent will not change, and gold is still the ultimate basis for people's trust.

But to be frank, the current gold is just a product of popular trends, a short-term metal equivalent with no support, and its applicability is getting narrower and narrower. Bitcoin, which has gold-like properties, is a better investment than gold. If you are a Bitcoin player, you will notice that the price of Bitcoin has risen from 4,042 yuan on National Day to 4,330 yuan, an increase of 7%.

It was mentioned earlier that gold and Bitcoin have the same properties. What exactly are the similarities?

1. Anti-counterfeiting:

Bitcoin ensures that there is almost no possibility of forgery and double payment by having all distributed clients save the same transaction history ledger. At the same time, the total amount of Bitcoin that has been created is also public and transparent. You can use various means to check whether your transaction is real and valid on a trusted third-party platform.

Without the need for professional measuring tools and identification experience, Bitcoin is definitely better than gold in terms of anti-counterfeiting, at least on the Internet. Because Bitcoin itself cannot exist without the Internet, the following comparisons are all based on the existence of the Internet.

2. Severability:

As a mathematical currency, any Bitcoin can be divided infinitely. No professional tools are required and there is no loss. Therefore, Bitcoin is far more divisible than gold.

3. Easy to carry:

Many people think that Bitcoin wallets can only exist in computers or other mobile storage devices. In fact, Bitcoin wallets are just a string of characters and numbers. As long as you are not afraid of forgetting, you can remember this string of passwords in your mind. As long as you can make sure that it is not repeated with others, you can even customize a unique and easy-to-remember password as a Bitcoin wallet, commonly known as a "brain wallet." Even if you don't use a brain wallet, using a USB flash drive, the portability of Bitcoin is far greater than that of gold.

4. Neither of them is the legal currency of my country:

Some people may mistakenly believe that gold is a legal currency in my country. In fact, the only legal currency in my country is the RMB. Moreover, at the beginning of the founding of the People's Republic of my country, private transactions of gold were prohibited, and the policy was gradually relaxed in 2000.

Just like gold, even if the country starts to reserve Bitcoin like it reserves gold in the future, Bitcoin will never become a legal currency in our country. In terms of legal status, gold and Bitcoin are the same.

Gold vs Bitcoin

One thing that makes Bitcoin better than gold is that, with the development of the Internet, Bitcoin, which is truly portable and easy to operate, is naturally more convenient than gold. At the same time, constrained by algorithms, Bitcoin is a true cosmic constant, while gold is only a temporary constant. Whether it can still be used as a currency in the future is still unknown.

At the same time, Bitcoin's long-term bullishness, medium-term volatility, and short-term sideways trading characteristics are destined to outperform the less stable gold.