Crypto-currencies have taken off in the last few years in an unprecedented way, so much so that they are starting to become financial assets that carry a lot of weight on the global market.

A fairly concrete proof of the rise of crypto-currencies is the multiplication of crypto-currencies, each year new virtual currencies appear, and arouse the interest of investors.

While Bitcoin remains the most famous cryptocurrency, others are also making a splash. The question now is whether it can be sustained in the long term.

What is cryptocurrency ?

Cryptocurrency, contrary to what its name seems to indicate, is not really a currency. Rather, it is a virtual digital asset, which is based on a particular technology, which is referred to as blockchain.

The value of cryptocurrency is based on only one criterion, which is the law of supply and demand. Another special feature of cryptocurrency is that it is not held by a trusted third party. This means that there is no central bank or equivalent, these are completely decentralised digital assets.
There is no doubt that cryptocurrency is an attractive asset for investors. Many have made fortunes buying Bitcoins or betting on other cryptocurrencies.

However, it is important to consider the volatility of these virtual currencies, which is significantly higher than gold. For example, over the past two years, Bitcoin, one of the most coveted cryptocurrencies, has been four times more volatile than the yellow metal. It is therefore clearly a risky investment.

Moreover, the cryptocurrency is very dependent on so-called "whales", i.e. investors with large sums of money. In the world of Bitcoin, whales are people who have more than 1000 BTC. They have a great influence on the volatility of this cryptocurrency.

Investing in gold : a safe bet?

Gold is the precious metal in which most investments are made. The reason for this is quite simple: gold has always acted as a rather safe haven.

Indeed, its volatility is not of ordinary importance, and if the yellow metal experiences periods of crisis and instability, it soon returns to normal.

All currencies have sooner or later been subject to a loss of confidence on the part of investors, but gold has always managed to remain immune to this. Why? First of all its rarity, then its stability (the value of gold has been recognised since the dawn of time).

Unlike currencies of all kinds, the price of gold does not depend on the financial markets. It has an intrinsic value, characterised by its weight. Gold is also universally recognised, i.e. by everyone, regardless of culture or other factors.

Because of its much lower volatility than crypto-currencies, gold is a safe haven, i.e. a safer investment option.