Bitcoin has yielded significant benefits for investors in the last decade despite being surrounded by severe allegations & downfalls. The only reason that millions of people maintained their fidelity to this massive cryptocurrency is due to the prospects of higher returns with maximum security. Gold is a physical asset that people usually buy, and Bitcoin serves an identical purpose just in the digital domain. However, the prospects of transparency, reliability, and scalability are significantly higher in the case of Bitcoin as opposed to physical gold. Now, StockHax will take you through some of the recent developments around the tax regime and how the above-mentioned assets can prove to be safe havens for you.
Why Is Gold Favored More Than Any Other Digital Asset?
There are a plethora of questions that have vexed investors & traders alike in the recent past as to what extent cryptocurrency can be taxed and what the implications of it will be. Recently, the governments of several countries have come to grips with the fact that cryptocurrency is inevitable. Hence, why not morph such digital assets in a way that benefits the entire nation without allowing any fraudulent activities in the emerging digital domain.
Traders & investors have already expressed their valid concerns about the increasing control over such digital assets, and the concept of a decentralized network also seems to be heavily affected due to it. The entire mechanism of cryptocurrency operates on the decentralized network & distributed ledger, which is why it gained massive traction from millions of people worldwide.
Is It The Surge Of “Digital Gold” Or Something Else Is In Store For Users?
“Digital Gold” was being criticized earlier, and then it all seemed like a flimsy concept when it was first introduced. The majority of the trading population took the concept with a grain of salt, except some firm proponents of the emerging technology. However, it does not seem to be a far-fetched reality at all considering the unfathomable benefits that “Digital Gold” carries for the active stakeholders. But, we need to address the ground report of such digital gold as its value has witnessed some significant downfalls lately, whereas physical gold continues to surge in price. Digital Gold will witness a significant surge in the forthcoming years which is quite safe to say as its growth in the past has been equally rewarding.
The Indispensable Store Of Value That Determines The Level Of Returns
Bitcoin & Gold are both seen as the predominant store of value, which provides great support, especially in an inflation scenario. Both of these massive assets benefit a large chunk where inflation strikes the economy. Furthermore, in the instances where a government depreciates its own currency either through printing money or increasing debts, Bitcoin proves to be a great asset in such cases. It acts as a safe haven for the trading population as they are able to tackle the stigma of “Low Purchasing Power” quite effectively. Now, this used to be a great inconvenience back in the day when traditional financial instruments used to have the upper hand.
What Implications Did The Russia & Ukraine War Have On The Digital Domain?
Bitcoin also possesses the ability to capture the market share of Gold to the most extent. Now, one pressing question that warrants a precise answer is what makes Bitcoin a hard pill to swallow for most users? Well, there is always a lingering possibility of uncertainties and volatility that deters the users from diving deep into this digital asset as opposed to other emerging altcoins.
Moreover, the ailing prices of Bitcoin remain in the mainstream media in the form of speculative bets. This is further vindicated by the fact that Bitcoin took a major blow right after Russia unleashed its fury against Ukraine, which led to a 10% fall of Bitcoin quite immediately. On the other hand, Gold, which is a physical asset, continues to rise steeply, which rose more than $1976, which is the highest in recent years.