A Big Difference in Recent Returns
Recent data shows a very interesting picture for gold and Bitcoin. In the last six months, gold is still up by around 42% in dollar terms, even after seeing some fall.
At the same time, Bitcoin is down by nearly 35% in the same period. This clearly shows that Bitcoin is going through a major correction, while gold has managed to stay strong.
The Ongoing Debate
There is always a debate about which is better for protecting wealth: gold or Bitcoin. Some people say that we should ignore Bitcoin’s ups and downs and only look at its gains over five or ten years. It is true that Bitcoin gave very high returns in its early years. But in the last four to five years, Bitcoin has not delivered any big growth like before.
Gold’s Long History of Trust
Gold has a history of five to six thousand years. No other asset can match this long record. For generations, people have trusted gold to protect their wealth. This long history makes gold a reliable option when someone wants to keep their money safe over time.
The Problem with Big Falls
When a person wants to store value, the most important question is about risk. Can you handle seeing your investment fall by 70%, 80%, or even 90%? Bitcoin has shown such large drops in the past.
These sharp falls make it very hard for many people to stay calm and confident.
Comfort Matters More Than Recovery
Imagine having ₹1 crore as your total wealth and putting 20% to 40% of it into Bitcoin. Would you be comfortable if that value drops close to zero or to just 10%, even if it may recover after three years? For most people, this level of uncertainty is very stressful. Peace of mind is also a form of return.
Trading Tool vs Long-Term Protection
Bitcoin can be a good asset for trading. You can buy, sell, go long or short, and use stop-loss rules. For traders, it offers many opportunities. When it comes to preserving value, gold clearly stands ahead of Bitcoin.
