Debating precious metals vs. cryptocurrency investments

Precious metals and cryptocurrency are two assets that are just as different as they are similar. One is extracted from the ground and forged in flames, a traditional process that has endured for many years. The other is digital, whose creation is done by way of computers solving complex equations. On top of that, it only exists in the form of bits and bytes.

Yet, for all the qualities that make precious metals and cryptocurrency separate, they actually share various similarities. Bitcoin, the original cryptocurrency, was intentionally designed to mimic the unique natural properties of gold. Moreover, new bitcoin is digitally “mined,” similar to how people physically mine gold, and the supply is limited on purpose. These similarities mean that they appeal to the same investors.

precious metals vs cryptoThis expansion to the digital realm has presented benefits for both sides. Trading has become more efficient, as seen with brand new exchange platforms like

Resemblances aside, precious metals and cryptocurrencies are ultimately different assets serving different purposes for investor portfolios. Along with these differences comes the question of which makes for a better investment. Cryptocurrencies are said to be the future of money, while precious metals hold a high position in the world of investment.

With all of this debating, which is the better investment? For that matter, is there a way to meet in the middle?

Precious metals

Precious metals are a time-honored method of investment. For centuries, investors have put their funds into assets like gold, silver, and platinum, and that longevity makes precious metals a safe investment. They are also popular components in jewelry and vehicle production.

A lot of precious metals have an adequate return rate, with silver being among them and having a diverse fluctuation. Many see precious metals – gold in particular – as being an ideal way to hedge against a financial slump. Gold actually maintains its value for quite a while.

Precious metals are comparatively less risky than crypto, but there are a few downsides to them. Purchasing coins and bullion could potentially cost a premium, and that extra fee can vary depending on where the investor bought from. However, some may try to scam investors. It is also rather expensive to put precious metals into storage, especially gold bars. Buying the asset is only the beginning; all these fees can add up, particularly for novices.


Putting aside simple value, cryptocurrencies are not under the control of any government or other similar group. To a lot of investors, this is a major bonus. Whatever happens to their value is based solely on the money flow, both in and out. A government cannot decide to print millions more, thereby reducing its value.

There are plenty of ways to invest in digital assets and there are also various use cases. A majority of the popular ones are available on an array of exchanges, most of which are easy to sign up for. Some, like GoldCoin, receive backing from physical assets while others act as doorways into digital ecosystems such as Ethereum.

For all the advantages that come from investing in crypto, there are some disadvantages. By far the most notable drawback is their volatile nature. This is often a dealbreaker for many investors. Even big names like Bitcoin are subject to extreme price fluctuations on the regular. Seeing as how the market operates 24/7, a significant price drop can occur anytime. While some find the volatility exciting and may be fond of the short-term gain potential, others are cautious.


For all this debate about which asset will generate better returns in the long run, it is so easy to forget that there is a third option. What’s more, it seamlessly unifies the two groups. This third option comes in the form of ‘stablecoins’.

Stablecoins are a new type of cryptocurrency that is backed by a reserve asset and offers stability in price. Stablecoins have garnered a reputation for providing the best of crypto and fiat currencies. With the former, it is the immediate processing and privacy or security of payments. With the latter, it is the stable valuations that are unburdened by volatility. Overall, there are four different types of stable coins: fiat-backed (the most prevalent), crypto-backed, commodity-backed, and algorithmic

In the end, deciding between precious metals and crypto is subjective. Moreover, both choices have their pros and cons. However, while this debate may carry on, stablecoins function as a fusion of the two assets, making this tough choice a little less tough.