Bitcoin has been known as “digital gold” all last year, because the digital currency was at its peak during the COVID-19 pandemic when the world economy was in turmoil. The cryptocurrency attained a market cap of around $1 trillion in early 2021 and is directly compared to gold as a rival. But then, the market crashed and in May this year its price came down to the two-month old price.
CoinMarketCap’s MutabKOn January 1 this year, the price of bitcoin in India was slightly higher than $ 29,300 (Rs 21.38 lakh). At the time of writing this report, it was trading at around $37,600 (Rs 27.44 lakh), which was a rise of nearly 30 per cent despite the market slump.
At the same time, on June 3, the price of gold in the international market was $ 1,904.36 (about Rs 1.39 lakh) per ounce (31 grams). On Tuesday (June 1), the price of gold had reached its highest level since January 8 at $ 1,916.40 (about Rs 1.39 lakh). of goldprice.org accordingly, Between January 1 and June 4, the price of gold was stable at around $1,893.66 (about Rs 1.38 lakh) per oz.
If you had invested Rs 10,000 in each of the two on January 1, your bitcoin investment would have grown 30 percent to Rs 13,000 today, but your investment in gold would have remained largely the same.
Let’s look at this to make it more fun. If you had invested Rs 10,000 in the mime currency DodgeCoin on 1st January, your investment would have increased 100x today, on 4th June. CoinMarketCap’s accordinglyDogecoin price in India increased from $0.004 (approximately Rs.0.30) on January 1 to $0.39 (approximately Rs.28) on June 4.
However, the recent volatility in the cryptocurrency market shows that no matter how much returns bitcoin and dodgecoin give, gold is more stable than cryptocurrencies and is therefore considered a safe investment. However, it is difficult to come out of the debate on this issue.