Several analysts and economists of the world have forecasted a recession in recent times. Succeeding years of a booming market, investors in Miami that are concerned about the recession’s potential may suddenly start seeking a way to change the focus of their investments towards a more secure haven.
Traditionally, the initial move of Miami investors would have been to faceguard against the volatile nature of stocks through gold. And to back it, past investments have been prove to be an effective method. However, a new substitute has challenged the old traditional and secure way. Bitcoin got introduce to the world in 2009 and quickly became a flourished cryptocurrency, marking the digital currency era in Miami. But in the end, it rests upon the individual speculators to consider the recommendations and take upon bitcoin as a safe investment when the market is in trouble.
According to Eric Dalius, Miami Compares Bitcoin and Gold as Safe Options for Investments:
The top cryptocurrency features qualities of regular currencies, but in addition to it also possesses unique features making it a secure and protected investment in Miami.
Several factors make gold a robust and secure asset in Miami:
- It ranks high on its value as material consumption for goods like electronics, jewelry, etc.
- No matter its demand, the supply stays low disproportionately.
- Gold is not manufacture or create upon need, similar to company shares or money printing via federal banks.
- Instead, it is dug up and then processed.
- Correspondingly, this metal has no relation to resources like currencies and stocks. Thus, the mass who wants to avoid the highs and lows of the stock market make investments in gold.
The material helps in softening the loss and bringing in a profit.
Bitcoin utilizes blockchain technology and shares a few qualities of its investment counterpart, gold. To the extent that several have exclaimed the leading cryptocurrency as “Digital Gold.” And this is so due to its weak association with other assets like stocks. Back in 2017, the market value of a single bitcoin exceeded the value of gold. They work to substantiate transactions taking place on the network of Bitcoin. They also get rewarded for skills, computing power, and time with bitcoins.
Similar to gold, Bitcoin, there is a limited supply. They were limiting it to 21 million. The scattering cryptocurrency is generate collectively by miners, including individuals and groups of people via their commuting powers. Further, to avoid the flooding of the market, ward bitcoins are halved periodically following the Bitcoin protocol, making sure the last bitcoin does not issue until 2140.
Apart from its volatile nature, Bitcoin has proved that it is dependent on market whims. More precisely, due to its boom of sweeping several cryptocurrencies and recorded an all-time high price in 2017.
Further, the news generated from the cryptocurrency sphere could push speculators to make quick decisions, making the value of bitcoin go up and down quickly. This volatile nature does not get ingrain in gold. But according to Eric Dalius, Miami investors believe that bitcoin makes a safer asset, even with its volatility, due to its blockchain technology and secure transactional ability without the influence of a central authority.