New Investment Options Comparison! - Sangli (-Miraj)

The sudden eruption of Cryptocurrency as the new era money, distinctive investment option, most profitable solution and the turning point in the economies of states and the globe must have a rationale. What makes it feasible that something which is so fresh can lead and race ahead of many profitable investment options like Gold, Forex, and Equity?

You must critically analyze your investment options before you decide to do so. The recent entrants like Bitcoin, Ethereum, Dash, and GDC Coin are daily making news as the record-breaking investment alternative. Are they commercially so successful, how is their liquidity, and what makes them better than Gold, Forex, and Equity? Let’s check out the same!

Cryptocurrency Vs Gold

People invests in things, which in unpredictable times of any economic collapse save their investment. With a history of more than 1000 years, Gold definitely is the investment option for everyone. It is limited, just like any other precious metal, due to its limited resources available across the globe. That is the reason for its value also. Value of Gold in untouchable with any political, natural or financial disaster and hence it seems to be the best option. But one must take into consideration that investments are done to grow, in addition to being safe. Looking at a graphical representation, in case of gold, growth seems negligible and stagnation is what gets highlighted. The graph clearly shows the volatile nature of Gold, due to heavy trading, which is again a matter of concern as it means heavy risk. If the investment is done by an investor just to preserve than gold may be one of the options, but clearly not investment options, anymore, for aggressive growth with low volatility.

Another critical point to be considered is, gold can be regulated and prevented by states, and authorities hence the freedom of growth gets restricted.

On the other hand, Cryptocurrency is also limited and cannot be generated after a certain count. The volatility of altcoins is also high but they do not have any ceiling, hence has high growth potential. With no regulatory body and the last three years trends in terms of their value, cryptocurrencies, like Bitcoin, GDC Coin, and Ethereum are most promising in terms of growth.

Cryptocurrency Vs Forex

To invests in forex you need skills, information, knowledge and time. You must have the expertise and time so that you earn good profits. Also, you need the required minimum investment of few hundred dollars or may be more to initiate. All this will result in growth which is slower and time taking than Cryptocurrency. You just need the basic knowledge of trading, in case of altcoins, few dollars as investment, simple knowledge of the kind of digital currency you wish to invest and not much of infrastructure. You need not be the master of exchanges to trade, elementary understanding of trading will do. The growth is tremendous and multi-fold.

Cryptocurrency Vs Equity

Comparing equity with Cryptocurrency is a broad subject but to understand the basic difference you can take the example of traditional Venture capital investments (VC). The comparison of both clearly shows that the return horizon in case of VC is 7-10 years where as in altcoins it is 1-5 years. Whereas the business model in VC is “Selling a product or services”, the latter has a business model of creating a self-sustaining circular economy. The fund currency is only Fiat in case of VC and on the other hand it is fiat or Cryptocurrency in case of altcoins. The market approach of creative circular economies, new ecosystems, new value creations are critical for success which is present in Cryptocurrency as the approach in equity is limited. When compared to the Wall Street vehicle for Gold the GLD ETF and one of the Cryptocurrency it shows that the volumes of Bitcoin traded have actually crossed the volumes traded for GLD ETF. The graphic representation is as under:

Conclusion

This is indicative that if long term investment is kept in mind with the intention of growing faster and reaping better profits than Cryptocurrencies and especially the ones which are technologically stronger, act as financial service providers, have forex trading services, allow Cryptocurrency trading and have the potential to rock the market with swift pace, just like GDC Coin, are the best investment options for today. Gone are the days when investment options like Gold, Equity, and Forex were considered to be the precise and perfect choice but aggressive growth over a short span of time and further with the continued acceptance the credibility of altcoins have given a strong ground to become the next big thing to invest. Therefore before you decide to invest, next time, give it a thought and do not hesitate in investing in young and dynamic cryptocurrencies like GDC.