There is no doubt Bitcoin is now one of the most popular currencies in the world now, despite being only readily accessible via digital platforms. Bitcoin has revolutionized the cryptocurrency market and this has not gone unnoticed by governments and other online payment systems providers.
It’s pretty easy to get your hands on Bitcoin in its digital form via online trading platforms; however, it is a little bit more complicated when it comes to transforming it into other currency forms. The best and the easiest ways to do that are finding a platform which allows users to transact in bitcoin, in exchange of goods/services or other currencies.
The value of bitcoin has been very volatile since launching on various exchanges a few years ago as people continue to speculate on its long term future. One fact though is that people have made money out of it by trading either long or short the coin as they capitalized on its volatility.
There are a host of reasons that make bitcoin volatile, and among them is the fact that there is divided opinion how good it is as a store or value. Take for instance in 2013 when the cryptocurrency coin surged to about $950 as early adopters rushed to buy. However, since then the coin has plunged to about $200 before rallying back to over $400.
Now, while the future value of bitcoin is highly unpredictable, this makes it a bad store of value. But it does not make it a bad creator of value. Ideally, it is pretty easy to make money in bitcoin as long as you are a good trader, but even the best traders find it hard to maintain or retain that value for long.
For instance, bitcoin has gained more than $200 since September last year, but now that rally appears to have ended. Analysts already predict that a decline could be on the way very soon. Having already made nearly 100% in gains in about four months, investors would be looking to make sure that they do not lose out in the event of a decline.
So how do you make sure the money earned in trading bitcoin translates to wealth eventually? Most people usually make withdrawals in their local currencies, or the generally accepted USD. However, these currencies too are not immune from volatility and tend to lose value during economic recessions. Not so for gold bullion.
Admittedly, the price of gold has suffered significantly over the last few years. However, when you assess it in a longer time horizon, most of that decline was a price correction for the rally that took the yellow metal from under $1,000 to over $1,900 through 2011.
Investing in gold bullion has never been the easiest thing to do either especially given the high price of the yellow metal. Normally, central banks are the prime movers of the price of gold while various institutional and wealthy investors also try to hedge their investments in income assets by investing in gold bullion.
However, for the individual/retail investor like you and me, things have never been pretty simple until recently when Bitgold, which is a platform, designed to make it easier for anyone to invest in gold bullion came to be.
Bitgold has also developed a section that allows users to sell bitcoin exchange it for gold bullion and withdraw to local bank account. This platform ensures that bitcoin traders can now easily transform their bitcoin earnings into gold bullion.
According to historical facts, Gold has been the world’s best store of value. Central bank use gold bullion reserves as a store of value for their currencies, while investors often use the yellow metal to hedge against uncertain market conditions. However, for individual investors, things have been a little bit difficult when it comes to hedging with gold bullion, but now this can be easily done thanks to emerging technologies like Bitgold.
The bottom line is that with bitcoin, you can easily increase income by either shorting or buying the coin via various exchanges. However, due to bitcoin’s volatility and its uncertainties over its long term future coupled with regulation differences, the best way to ensure that you do not end up losing all your bitcoin earnings is to cash out on a regular basis while maintain stable trading amount in your bitcoin account.
One of the ways to cash out would be to exchange bitcoin for USD or other local currency and transfer the money to your savings account, but now, we know that you can also convert your bitcoin money into gold bullion, quite easily.
Featured image from Shutterstock. This is a promoted story.