Indian families look forward to festivals like Diwali and Dhanteras to buy gold, mostly because it’s considered auspicious. The metal’s limited supply and big demand makes it a safe asset against inflation.
But as of 2021, many Indians have realized the importance of invest smartly by diversifying across asset classes. In view of the same, people who are keen on investing have begun to view Bitcoin or other cryptocurrencies as the new digital gold. The easy investment process and easier storage option has given crypto an advantage as compared to gold. Bitcoin can easily be stored in digital wallets and can be used across a variety of platforms, especially since many more are now accepting crypto as a valid form of currency.
Nischal Shetty, co-founder of WazirX, says that while choosing which option to invest in, one shouldn’t fully rule out gold, as it has been recognized since time immemorial as a ‘store of value’ and a medium of exchange.
But the trick lies in simply adding Bitcoin to your portfolio. This allows for diversification, which is the key to acquiring wealth in the long-term, especially because it allows people to manage assets even during market ups and downs. Experts also encourage people to look into their own asset composition and decide which option will work out best for them. Ultimately, many agree that rather than focusing on gold vs. Bitcoin, the new-age Indian must look at the benefits of investing in both gold AND Bitcoin. This will enable them to minimize risks and maximize returns.