Live Metal Prices / oz
Gold: 1277.32 USD
Silver: 14.35 USD
Platinum: 819.00 USD
Palladium: 1306.50 USD
Rhodium: 2890.00 USD

Buying Gold with Bitcoin

A Brief History of Bitcoin

Bitcoin was primarily started as an alternative to conventional currency and payment methods. However, as the world understood the benefits of Bitcoin, users thronged the cryptocurrency space. This led to high trading volumes which caused the prices of Bitcoin to escalate. Bitcoin thus became a commodity to invest in. 

Bitcoin which started off at dust prices began to be traded at a unit price of over $19000. People received enormous returns on their investments, which led it to intense scrutiny of the regulatory authorities. As more restrictions were imposed, along with a host of other factors, Bitcoin prices started crumbling. Long term investors were left with no options but to sell-off their Bitcoins at lower prices to avoid further losses.

A few interesting alternatives to sell-off came into light. One of the ways was indulging in high volume, high-frequency trades to capitalize on every trend. The other alternative that most people opted for was investing in other tangible commodities like gold.

How Does Gold Investment Work?

Gold prices have always shown an upward trend when it comes to long-term investments. In a span of 10 years, gold prices have increased from being $834/Oz to $1291/Oz, even reaching an all-time high of over $1800/Oz during this period. Investing in gold through Bitcoin can be a profitable venture.

On websites like swissbullion.ch, one has an option of paying for gold through Bitcoin as well. This is a trend which is being followed by various other online sellers. In such investments, you can choose to get gold delivered to you in the form of Bars, Bullions and Coin; or even let these services secure your gold for a certain period of time, which can be encashed back whenever you require.

Buying Gold With Bitcoins

Bitcoin can be purchased through any of the online exchange platforms. Purchasing a Bitcoin is slightly different from conventional purchases. As Bitcoin is a Peer-to-Peer Electronic Cash network, new Bitcoins are generated through a process called ‘Bitcoin Mining.’

The important aspect in these transactions is being well-versed with using a Bitcoin wallet and understanding the mechanism of payment that your online seller uses. Most of the times when you complete a transaction, you are prompted to choose from a variety of payment options. During check-out, you can use your payment options as ‘Bitcoin Wallet’ and the amount will then directly be deducted in the form of Bitcoins.

The major advantage of buying gold using Bitcoin is that it reduces the volatility in your investment portfolio. As Bitcoin is highly volatile, its prices may fluctuate incessantly. Gold is comparatively a more stable form of investment.

The Added Advantage

The key to maximizing your investments is having a mixture of high-risk and low-risk assets, which not only helps you protect your initial capital but also helps you capitalize on every market trend. Buying gold with Bitcoin, not only renders you immense flexibility but helps you create a diverse portfolio of your investments.

Amidst the uncertainties of life, it is more likely that gold, silver, and other precious metals would grow exponentially, or retain their value even after a certain time. Paper currencies tend to lose value and show reduced purchasing power over time. One should wisely choose their area of investments.