Life, once again, tried to teach us to preserve our money, so we can save it, and have enough when it comes to hard times, like today’s, while we live during a pandemic. As we already know, the new coronavirus was spreading violently all around the world, and many private businesses, but also bigger companies, suffered a lot. Many of them fired a lot of people, so they can save something. On the other hand, the disease caused so many people to die, or to take longer leaves so they can heal. That means, the companies faced a lack of human resources at some point. Generally, we can say that the COVID-19 pandemic crushed the global economy, and taught the people to learn how to manage their finances, and why it’s important to save money, so they can have something in these heavy days.
Many people, who already had some money with them, weren’t much secure about how to save and store them. We all saw that the value of the American dollar has changed in the last few months, but at the same time, the Bitcoins rates were rising rapidly. When it comes to fiat currencies, the safest way to preserve your wealth is gold. It’s a precious kind of metal, and the less it’s available in the world, the bigger the value is. But, we are all informed about this, and we know how valuable it is. Most people use it for investments, and to keep their wealth safe.
As we talk about the crypto market development, we all know that the Bitcoins there are treated the same way as the gold. We can say that they are the safest way to keep and store your wealth, but no one can guarantee that the value will stay the same over time. Many people think it’s a good idea to convert their dollars or other currencies to Bitcoins and store them in the digital wallet, and it maybe is, if we are sure there won’t be some huge changes in the dollar-to-Bitcoin rates.
No one can teach people how to take care of their money, but we can all follow what’s new in the finance world. According to techtimes.com, gold and Bitcoins are the “safe havens” of the finances, and people should learn more about how to use them, so they can save their money, and won’t let them be affected by inflation. Right now, one Bitcoin is equal to $17,763 (last checked on 18 November 2020), and the prices are going higher, which makes it one of the most secure ways to preserve your money. But, what about gold?
It’s not much affected by the inflation
For many years, gold is considered one of the safest ways to store your wealth. It’s not much affected by the changes in the market, but you need to know why you are doing that, keeping your wealth in a bank. Its value is constant over the centuries, and that’s why wealthy people choose it as the safest way to keep their money secure. There is no sign that it will be changed during the time, so if you have a huge amount of money you want to ensure it’s always safe, you can exchange it for gold, and always know you did the right job.
Bitcoins are changing over time
Right now, these are the golden days of cryptocurrencies, especially after their rates were very low in the first months of the pandemic. But, after that, there was a halving event, and it stabilized the whole market, helping Bitcoin to reach its highest values this year. Some people predicted this may happen, so they invested in them on time. Those who did that, and who bought or traded them earlier this year, now can exchange their crypto savings for fiat money, and then even invest in gold, if they have enough money to do that.
You can invest in both gold and crypto money
It’s not necessary to invest in both of them, but you can also choose one of them. Most experienced investors know how to manage the investments, but if you are a beginner in this, it will be easier for you to start with one of them. Before you do that, you need to be informed about what are you doing, and also about all the advantages and disadvantages, no matter if you choose Bitcoins or gold.
Cryptocurrencies are an alternative
Since they are very risky, and no one can predict how will the rates change over time, it may be better for you to choose the gold over the Bitcoins, especially when you want to keep more money in the bank. Experienced crypto investors know when it’s the right time to stop investing and keep the coins on the digital wallet, until the right time for exchange. So, the general recommendation is to choose the option you trust more.
Will the economy have time to recover?
Sadly, the number of positive coronavirus cases is still growing every day. Right now, we are expecting the so-called second peak, and it brings more difficult times for the companies and small businesses. People also may face new problems at work, since the economy doesn’t show much liquidity. The situation is so unclear, and no one can exactly tell if it’s possible for the economy to recover soon. The best solution is for the individuals to be responsible for their finance, and find the right way to ensure their savings and wealth are secure during these complicated times.
When it comes to choosing if you prefer precious metals or the popular cryptocurrencies, you need to choose the one that will be easier for you to control and monitor. It’s on you to research all the options you have and decide which one will be better for you. We hope you will be able to survive the pandemic, and proceed with normal living when everything is over.