There are many choice investments that you can add to your portfolio. Stocks, bonds, ETFs, real estate—these are the classics. Then, the digital age brought about new wealth-building possibilities in the form of cryptocurrency. Market watchers and investors have seen its growth potential, with Bitcoin at its recent high at $40,000 per one BTC.

Another classic investment is a precious metal. However, there’s debate about whether buying precious metals such as gold is still beneficial in the current digital age. The value of Bitcoin alone is overpowering gold, and there are many types of cryptocurrency and precious metals. However, if we’re to put the general value on price alone, many won’t succeed in the investing game.

Bitcoin vs. Gold

• Volatility

Bitcoin is influenced by supply and demand. The market value fluctuates heavily, and it’s evident how it went on a seesaw spree back in 2017. The price rose from $1,151 to $ 11,537 before plunging back to over $5,000 in 2018. Compare that to today’s value, and even those who ignored Bitcoin are now turning their heads around.

Gold compared to Bitcoin is tangible as you can own it physically. The precious metals move against the economy, which is why it has long served as protection against inflation for many investors. While it is volatile, gold can maintain its value for long periods. From private investors to central banks, they keep gold to liquify when the economy is unstable.

• Baseline Value

One of the benefits of Bitcoin is that people can make use of it without a bank account. People can also send money all over the globe without leaving their homes—as long as you have access to the Internet, even if you live in a remote area, you don’t have to worry about access or large fees.

As for gold, its value has long been acknowledged for thousands of years by ancient civilizations. It has various applications from jewelry, photography, dentistry, and even industrial uses.

• Scarcity

Currently, there are 21 million Bitcoins up for mining. One can only wonder if there will be more created once that number has been zeroed out. More investors worldwide are watching the rise and fall of Bitcoin and considering adding the digital coinage to their portfolios. The question is, is there enough for everybody?

According to the US Geological Survey, there are currently 52,000 tons of gold up for mining on the earth’s surface. No matter the amount of usage, the gold supply has remained unchanged since 1995. The development of old mines and the opening of new ones are keeping the supply steady.

• Safety

If you decide to own physical gold in coins or bars, they can possibly be stolen away. They should be in depositories where the IRS won’t tax them if you’re holding them in an IRA for your retirement. As a form of ETFs, market risk is also volatile.

The possibility of hacking Bitcoin is next to impossible. Cryptocurrency is held in blockchain and digital wallets. Cryptography is used to keep transactions safe. The only way charlatans could get away with your Bitcoin is if they gained access to your digital wallet or if they’re able to convince you to part with them.

The Bottomline

Various types of investments come with pros and cons. Bitcoin and gold may have their differences, but that doesn’t mean you can’t try owning both. If you’re an investor open to diversification, it can be beneficial to own both. If one’s value crashes, the other can save you. Gold remains a good investment for the long-term as it is also easy to liquify with an ability to hold value. Managing it is easier today now as digital options for dealership and brokerage are expanding. You can look after it while your Bitcoins are sitting in your blockchain wallet.

Source: Tracey Cole is a successful blogger who regularly publishes articles about investments and finance. Tracy aims to help her readers improve their financial health by teaching them how to invest and manage their finances long-term.