The cryptocurrency market reached new heights, exceeding the capitalization of $ 3 trillion and becoming a serious competitor to traditional gold. What are the advantages and disadvantages of these assets? Can cryptocurrency completely replace gold as the main remedy for capital storage?
The cryptocurrency market continues to set new records, exceeding the $ 3 trillion in 2024, while gold remains a traditional means of saving capital. Can a digital asset completely replace precious metall in the coming years?
For centuries, gold has been the main means of preserving capital due to its stability, physical form and recognition around the world. However, with the development of technologies cryptocurrencies begin to perform a similar function, offering fast transactions, high liquidity and independence from traditional financial institutions.
Cryptocurrency and gold: competition or coexistence? b>
according to data The largest Binance crypto accounts in the world, in 2024, the capitalization of the cryptocurrency market exceeded $ 3 trillion. In October 2024, the digital assets market overcame the $ 2.5 trillion mark, and in a month this figure increased by another $ 500 billion.
but the total cost gold is estimated in 13–15 trillion dollars.
Advantages and disadvantages of both assets
Gold It is a reliable asset with a thousand -year history that provides stability and low volatility due to its physical format. However, its possession is associated with additional costs for storage and transportation.
cryptocurrency is characterized by high liquidity and speed of transaction, and also does not have geographical restrictions, which makes it attractive to modern users. However, it is characterized by significant volatility and is at risk of regulatory pressure, which can affect its stability and safety as an asset.
What to choose and what experts advise?
Most experts say that gold traditionally remains a “quiet harbor” for investors, especially during economic instability. It retains its value even during the crisis, while cryptocurrencies can experience sharp fluctuations.
at the same time, cryptocurrency has the potential to transform the global financial system. Experts note that one of the key trends in 2024 was the integration of digital assets into traditional financial systems. Analysts predict that banks will begin to use cryptocurrency for international transactions more actively, which will contribute to their growth and stabilization.
Author: Maria Hitiri
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