May 4, 2023



In recent years, cryptocurrencies like Bitcoin have taken the world by storm, with their innovative technology, potential for massive profits, and exciting new possibilities for the financial world. While many people are drawn to the allure of cryptocurrencies, it is important to consider the advantages of a more traditional option: gold.

Bitcoin has sometimes been called a “digital gold” and a hedge against inflation, but 2022’s rate hiking cycles in major economies proved that in the worst-case scenario, Bitcoin acts more as a risk asset than a hedge, falling alongside tech stocks. Now that cryptocurrencies are more mainstream, the market has also had the time to look at what they offer, but it seems that gold is still the better option for some.

Ray Dalio, billionaire founder of Bridgewater Associates, the largest hedge fund in the world, has stated he does own Bitcoin, but may not be completely sold on the concept. In an interview with CNBC, the legendary money manager said, “If you put a gun to my head and you said ‘I can only have one’, I would choose gold.” Most recently, he commented: “I don’t understand why people are more inclined to go to bitcoin than gold.”

So why is it that gold's enduring allure is still strong enough for one of the world’s greatest asset managers to continue to prioritize it over a new asset like Bitcoin, even with sky-high returns for many cryptocurrencies in the past few years? 

A History of Value

Gold has been valued by human civilizations for over 5,000 years. Its beauty, scarcity, and unique physical properties have made it a symbol of wealth and power throughout history. From the ancient Egyptians to the modern-day United States, gold has been used as currency, a store of value, and even as a hedge against inflation.

In contrast, Bitcoin and other cryptocurrencies have only been around for just over a decade. While the technology behind cryptocurrencies is innovative and exciting, their brief history makes it difficult to predict how they will fare in the long run. Gold, on the other hand, has a proven track record of maintaining its value over time.

Intrinsic Value

Gold is a tangible asset with a wide range of uses, including jewelry, electronics, and even dentistry. Its value is not solely based on market perception or speculation; rather, its physical properties and practical applications underpin its worth.

Cryptocurrencies, on the other hand, derive their value primarily from their perceived utility as a digital currency and the belief that they will continue to gain widespread adoption. While cryptocurrencies may continue to grow in popularity, their value is ultimately based on confidence and perception, making them far more susceptible to dramatic price swings.

Stability and Volatility

While all investments carry some degree of risk, gold has historically been a far less volatile asset than cryptocurrencies. This stability is due in part to gold's intrinsic value, as well as its long-standing role as a store of wealth and hedge against inflation.

Bitcoin and other cryptocurrencies, on the other hand, have experienced extreme volatility in their short history. Prices can swing dramatically in a matter of hours or days, making it challenging for buyers to predict the best time to buy or sell. This volatility can be particularly concerning for those who rely on their investments for long-term financial security or retirement planning.

Regulatory Environments

Gold has been a widely accepted and regulated asset for centuries, with established markets and well-defined guidelines for trading and taxation.

Cryptocurrencies, however, are still in a state of flux when it comes to regulation. Governments around the world are grappling with how to classify and regulate these digital assets, leading to a patchwork of rules and regulations that can be confusing and inconsistent. This lack of regulatory clarity can make buying cryptocurrencies more risky and uncertain than buying gold.

Accessibility and Storage

Gold is a more accessible investment option for many people. Physical gold can be purchased in the form of coins, bars, or even jewelry, making it easy for anyone to own and store. With new platforms for buying and selling gold like Matador, buyers can purchase gold from their smartphone, have it stored with trusted custodians like the Royal Canadian Mint, and sold or shipped to them easily. The gold market is one in which pricing, the underlying asset, and it’s price behaviour are well-mapped and less likely to catch buyers off-guard.

Cryptocurrencies, on the other hand, require a greater level of technological know-how to buy, sell, and securely store. While this may not be a barrier for some, it can be a significant hurdle for those who are less inclined to learn about the underlying technologies behind cryptocurrencies.

Buying and Selling Gold Like Dalio

For one of the world’s greatest money managers, gold continues to shine. For those who want to begin building their own portfolio, skip the outdated methods of acquiring gold, plagued by lengthy delivery times, costly storage fees, and rigid selling procedures. With Matador, you can conveniently buy gold right from your smartphone, beginning at 1g.

Your gold is securely stored at the Royal Canadian Mint, putting an end to your transportation and storage worries. If you'd rather have your gold within reach, we offer shipping to your residence at the tap of a button.

Don't let the future of gold buying pass you by - sign up for our waitlist or download the Matador app now!

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