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Bitcoin, Dogecoin and Gold: Which investment in 2021 will make you richer?

Cryptocurrency trading is becoming more and more mainstream. Although predicting the future of this turbulent market is a wild guess, the rapid rise in the valuation of digital currencies such as Bitcoin and Dogecoin this year has aroused the imagination of millennials. But there are still many people who do not believe in the long-term future of cryptocurrencies, and prefer to invest conservatively in assets such as gold-a traditional hedging tool to hedge against currency depreciation and fluctuations. So, what is a better investment? In other words, let’s see if you invest at the beginning of the year, which of these assets will make you richer today.

Throughout 2020, Bitcoin is called “digital gold” because it reflects the trajectory of precious metals when the global economy is shaken by the ongoing COVID-19 pandemic. This cryptocurrency reached a market value of nearly $1 trillion in early 2021, and as a store of value seems to be comparable to gold, and it may appreciate more over time. But then, the market crashed and most of the gains were offset in May this year.

According to data from CoinMarketCap, on January 1 this year, the price of Bitcoin in India was slightly higher than US$29,300 (Rs 2,138,000). At the time of writing this report, it was trading at approximately US$37,600 (2,744 million rupees)-despite the market crash, it was still up nearly 30%.

On the other hand, in the international market on June 3, the price of gold was US$1,904.36 per ounce (about 139,000 rupees). On Tuesday (June 1), the price of gold hit the highest level since January 8 of 1,916.40 US dollars (about 139,000 rupees). According to data from Goldprice.org, between January 1 and June 4, the value of gold has been relatively stable at around US$1,893.66 per ounce (approximately 138,000 rupees).

Considering that you invested 10,000 rupees in each of the two on January 1, your bitcoin investment today will increase by 30% to 13,000 rupees, but your investment in gold will remain basically unchanged.

More interestingly, if you invested 10,000 rupees in the meme currency Dogecoin on January 1, your investment today (June 4) will increase by 100 times. According to data from CoinMarketCap, the price of Dogecoin in India has risen sharply from $0.004 (approximately Rs. 0.30) on January 1 to $0.39 (approximately Rs. 28) on June 4.

However, recent volatility in the cryptocurrency market has shown that the status of Bitcoin and Dogecoin as viable alternatives to gold or any other traditional asset is controversial.


Interested in cryptocurrency? We discussed everything about encryption on the Advertisement Shout podcast Orbital with Nischal Shetty, CEO of WazirX, and Alok Jain, founder of Weekend Investing. Orbital can be used on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get podcasts.
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