GIFA Token vs. Gold: Which One Should You Invest In Now?

Euro banknotes and some piece of gold bar overlapping GIFA Token, a trading concept / GIFX  From barter to cryptocurrency, gold has been a p...

Euro banknotes and some piece of gold bar overlapping GIFA Token, a trading concept / GIFX 

From barter to cryptocurrency, gold has been a part of the historical barter system that played a key role in human history backing civilization over the last 3,000 years. From bushels of wheat and weights of precious yellow metals to modern blockchain-based digital assets. 

Trading strategies, currency markets, and the way we interact with them continue to evolve. Throughout history, gold has been absolutely central to developing the modern international trade networks which exist today.  Many have wondered whether gold has lost its shine. Certainly, over the past 20 years, that's not the case, but more recently the performance of gold has been lackluster. For 2021, gold is down about 9%, while other asset classes such as equities, real estate, and even the dollar have risen higher. 

Why Is Gold Valuable?

Not only does gold present itself as a universal store of value, but it has also historically attracted investors for its natural scarcity.  The cryptocurrency a pseudo-science-technological innovation brought not the only potential to the monetary system but also to compete against the gold, but only time will tell whether the precious metal leverages that have been a long history of monetary value will remain without rival.  

We know the fact that no nation has questioned its value, and during times of chaos and uncertainty, the yellow metal provides a healthy dose of confidence and economic stability. Even today, central banks everywhere hold a portion of their wealth in gold. Gold represents an excellent indicator of inflation. Because gold supply and its production rate are limited, an influx of currency to which gold is compared will see the metal rising in relative value.

The early universal acceptance of gold’s scarcity incentivized ruling powers throughout human history to modulate its acquisition and distribution. The holistic record of gold is not just of rational scarcity, but of deliberate economic manipulation. To put it simply, we all recognize gold’s inherent value. But how long this recognition will remain? Such a question is open for debate!

What is the Standard of Value?

Standard of value is an agreed-upon worth for a transaction in a country's medium of exchange, such as the USD or Turkish Lira. A standard of value allows all merchants and economic entities like banks to remodel the uniform prices for goods and services. This standard is necessary in order to maintain a stable economy in the world. 

On another hand, gold has (1) limited growth potential: Unlike a company’s stock which represents the equity in a business enterprise, the precious commodity doesn’t offer much of an incentive. 

(2) Not a social hedge: While gold provides an inflation hedge, it doesn’t protect against severe social fissures. For instance, when the COVID-19 pandemic first struck us in early 2019, toilet paper represented the most sought-after commodity in the market and not gold. This also raises the philosophical question that if society melts down, the money of any medium may not have much meaning. 

Yes, of course, we know, that gold plays a significant role in the financial realm. However, you may be surprised to know that gold as an investment option only represents its 2l-largest source of demand. Compare the price of Gold ($55.90) vs Bitcoin (58311,20) for example.  In fact, the investment and central banking demand both in combination still don’t reach the biggest source of demand. When asked why gold is valuable, the answer is probably adorned on our body somewhere: jewelry.

How a Standard of Value is Applied

By using such standards, the value of other goods and services can be determined in a relatively consistent manner regardless of the differences among those goods and services. The value of a luxury car, for example, can be set just as readily as the value of a pair of running shoes. The scale of value for these items is drastically different, as is their function and use. The establishment of a standard of value for currency, in particular, allows for easy exchange between individuals, merchants and customers, and businesses.

The currencies such as the dollar or the euro and others respond to the decisions of the governments, which in many cases are dealing with natural catastrophes, pandemics, bailouts, other spending priorities, or simply the need to “reactivate the economy”, and which, therefore, form part of an imperfect system in which it is necessary to continue generating money and stoking supposedly “healthy” inflation, with all that this entails in terms of increased inequality. In reality, currencies such as the euro or the dollar, although they provide us with a false sense of stability — in part because we mistakenly believe there are reserves behind them — they are much more unstable and subject to random factors that are impossible to control.

Cryptocurrency investment portfolio

The young generation somewhat undermining the yellow metal in favor of other asset classes such as GIFA Token which is a digital currency that represents the new model guaranteeing users protection against inflation and soon will become the new store of exchange, replacing fiat currencies altogether, as more investors adaptation to this mysterious cryptocurrency and abandon the dollar, euro, yen, and yuan. 

It advisable to hold some gold, and even some cryptos, for diversification purposes and this is a smart way to go. According to Mizuho Securities, a Japanese brokerage firm, it estimated that $40 billion of US stimulus checks spent on cryptocurrency, according to a survey published on March 15. ''We’re seeing new institutions coming on board from traditional finance backgrounds, ramping up deposits into cryptos, and these are buy-and-hold clients”

Cryptocurrencies are an exciting investment trend, but due to their volatile nature, they might not be appropriate for all investors. The mainstream has grown an appetite for digital assets, as evidenced by more than 100 million people around the world are now using cryptocurrencies and a number of baby boomers and Gen Xers are becoming interested in bitcoin and other tokens. Many companies and consumers don't always prefer cash anymore, and this behavior is giving way to the cashless society. With the quick wave of digital registers. Now, a new payment system is emerging: cryptocurrency.

Probably everyone heard about Bitcoin by now. It was the first cryptocurrency to go mainstream, but others are growing in popularity. There are more than 2,000 different types of cryptocurrencies, and more are developed every day. Cryptocurrency is new digital money that doesn't rely on banks to verify transactions. It's a peer-to-peer system that can enable anyone anywhere to send and receive payments. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger and your cryptocurrency store in a digital wallet. Digital currencies are the hottest commodities. investing.

Diversify your investments

Diversification is a key to any good investment strategy, and it holds true when you're investing in cryptocurrency too. Don't put all of your money in Bitcoin, for example, just because that's the name you know. There are thousands of options, and it's best to spread your investment around to several currencies. The cryptocurrency market is a volatile one, so be prepared for ups and downs. You'll see dramatic swings in prices. If your investment portfolio or mental wellbeing can't handle that, cryptocurrency might not be a wise choice for you. Cryptocurrency is all the rage right now, but remember, it's still in its infancy. 

GIFA Token (GIFX) is corporate-backed crypto managed by GIFA Holding LTD, an international company registered and domiciled in the Turkish Republic of Northern Cyprus (TRNC). GIFX exchange is an all-in-one trading platform that provides the best options for cryptocurrency investors and seasonal traders who seeking the best alternative to Bitcoin, Ethereum to diversify their crypto portfolios and growing the value of their investments. Please, click the button below to complete a free sign-up in few minutes.