Rampant inflation, pandemics, war – if the recent years have taught us something, it's that anything can happen. And when things happen, they happen fast.
In an increasingly uncertain economic environment, investors are becoming more concerned about safe-haven assets that could serve as a hedge against any potential crisis. Gold and Bitcoin are two of the most popular candidates for the status of a perfect safe haven – so which one should you own, precious metals, crypto, or gold-backed digital currency tokens?
Without a doubt, fixed gold is the most time-tested asset ever to exist. In every culture and corner of the Earth, gold has always been held in high esteem and is still as valuable as ever.
J.P. Morgan, the founder of one of the largest banks in the world, is famously quoted as saying: "gold is money, everything else is credit." It sums up the main advantages of gold quite well – it simply is the hardest form of money you can imagine.
Gold coins are trustless, permissionless, and decentralized. When you hold physical gold, you are the sole owner of the stored value. Unlike with fiat currencies stored in a bank, nobody can freeze or seize your assets – provided that you have hidden and secured them well.
Another massive advantage of the gold supply is that it has virtually no counterparty risk. When you own gold, political or economic decisions cannot really negatively impact your holdings. In addition, holding physical gold tokens can give you tremendous confidence because it gives you full sovereignty over your assets – no politician or bank can take away their value.
Finally, perhaps the most important benefit of gold is that you don't have to take anything for granted. The effectiveness of gold as a safe-haven asset has been proven repeatedly over thousands of years. Sure, just like with any asset, the price can decrease in the short term allowing you to buy gold cheaply – but in the long term, physical gold always holds value and always increases in price during times of crisis.
Cryptocurrencies like Bitcoin have been called "gold crypto" for a very long time. At first sight, this comparison might not be intuitive – after all, how can a string of 0s and 1s be similar to a heavy, shiny bar of gold? However, upon closer examination, it becomes apparent that precious metals and cryptocurrencies really do have a lot in common.
For one, both Bitcoin and gold are immune to inflation. Politicians and central bankers can create fiat currencies like dollars and euros out of thin air, significantly decreasing their value over time. On the other hand, BTC and gold have limited supply, so their value is expected to keep increasing, and they won't face inflationary depression.
However, it's important to note that inflation is not the only threat to your life savings that can be warded off with Bitcoin and gold. From recessions and supply chain issues to significant crises like wars, BTC and gold become priceless safe-haven assets when things go wrong.
Cryptocurrencies, along with copper and gold, have many similarities, but of course, there are also many differences. The first thing that comes to mind is that crypto is intangible – it only exists as information stored on a decentralized network of computers.
Because of that, digital currencies like Bitcoin are the perfect tool for the modern-day's digital nomad. They can be transferred between different countries and continents at a meager cost. Gold can't stand this comparison – transporting it is very costly and takes a lot of time.
Crypto is not only easier to transfer, but also easier to secure. For example, precious metals like gold or silver need to be stored in some of the most secure vaults in the world, or at least in a safe, and even then, the risk of your gold being stolen is never 100% eliminated. Digital assets like Bitcoin, on the other hand, are stored on the blockchain, protected by military-grade algorithms that cannot technically be broken – and the best part is that this unparalleled level of security costs you nothing.
While the intangibility of crypto is usually an advantage, some experts point to the fact that the physical nature of metals like gold makes them more resilient. For example, a major crisis can potentially damage the power grid. This would make it very hard for you to access and use your crypto, but your physical gold would be unaffected, as its value is independent of any network or infrastructure.
Gold and Bitcoin both have their own dedicated fans who cheer for their favorite "teams" like supporters of rival football clubs. Sometimes, the discussion between "coiners" and "goldbugs" can get heated – but do we have to pick just one from these two great, massively useful assets, or can we have the best of both worlds with tokenized gold-backed crypto?
Sure, Bitcoin is definitely handier, much easier to secure and transfer. On the other hand, gold has an unbeatable track record as a resilient store of value – gold coins minted thousands of years ago not only have not devalued but have tremendously increased in price.
There's no denying that both precious metals and cryptocurrencies have particular advantages and disadvantages. So perhaps the best answer to the gold versus Bitcoin debate is simply owning both of the assets at the same time.
But what if there was an even better solution: something that combines all of the advantages of gold and crypto in a single, powerful package?
Aurus is a revolutionary project bridging the worlds of precious metals and crypto by empowering you with the opportunity to buy tokenized gold-backed crypto, tokenized silver crypto, and platinum in a tokenized form. Aurus tokens have all the benefits of traditional physical metals but can be traded, transferred, and stored as quickly as Bitcoin. It's the best of both worlds.
Most importantly, all Aurus tokens are 100% backed by physical metals secured in one of the Aurus-affiliated specialized vault facilities, which are some of the most secure vaults in the world.
Each golden token is redeemable for 1 gram of physical gold, silver, or platinum accredited by the prestigious London Bullion Market Association (LBMA).
Aurus is the definite answer to the "gold versus crypto" debate. Buying gold-backed crypto tokens is the most powerful combination of tradition and innovation ever created.