Why Combine Gold and Bitcoin?
Both gold and Bitcoin have become go-to assets for those seeking financial security. Although they have distinct characteristics, combining them in an investment portfolio allows for diversification, merging the reliability of precious metals with the innovation of digital currency.
Preserving Wealth and Maintaining Value
Gold has long been considered a safe haven asset. Its value isn’t controlled by central banks, making it resistant to economic crises and inflation. The total market capitalization of gold is nearly $20 trillion, making it the world’s largest asset class. As of today, one ounce of gold is priced at around $2,900.
Bitcoin, on the other hand, is often called “digital gold” due to its limited supply. While more volatile in the short term, Bitcoin has historically served as a hedge against inflation and currency devaluation.
Currently, Bitcoin’s market capitalization is $1.91 trillion, ranking it seventh among global assets. Some analysts predict that by 2025, Bitcoin could climb to second place, surpassing giants like Apple and Amazon. Historically, Bitcoin’s value has consistently increased over four-year cycles.
Scarcity and Supply Limits
Gold is a naturally scarce resource, difficult and expensive to mine. Its limited availability maintains its high value, reinforcing its status as a stable asset.
Bitcoin, however, has an even more predictable supply—hardcoded to never exceed 21 million BTC. Currently, 19.8 million BTC are in circulation, with the last Bitcoin expected to be mined around 2140. Unlike fiat currencies, Bitcoin cannot be printed at will. New Bitcoins are created through proof-of-work mining, requiring significant computational power.
Additionally, Bitcoin undergoes a halving event every four years, reducing the rate of new coin issuance by 50%. This built-in scarcity model has historically driven long-term price appreciation.
Tax Benefits and Storage Considerations
In Poland, investment gold is exempt from VAT, and after six months, profits from its sale are not subject to capital gains tax. Bitcoin, however, is taxed at 19% on capital gains, making gold the more tax-efficient option.
Storage is another key difference: Gold requires physical security, leading to potential storage costs and theft risks. Bitcoin, as a digital asset, can be stored on hardware wallets or private keys, eliminating the need for physical protection. However, digital storage comes with its own risks, such as hacking and loss of access.
Liquidity and Investment Strategies
Gold is highly liquid, but transactions require physical verification and transportation. While gold is globally accepted, regulations can make it difficult to access in certain regions. Large transfers may take days or weeks due to shipping constraints.
Bitcoin, on the other hand, is a fully digital asset, allowing for instant global transfers without intermediaries—settling within minutes. It can also be traded 24/7 on cryptocurrency exchanges. Despite Bitcoin’s current price hovering around $100,000 per coin, investors can buy or sell fractional amounts (as small as 0.00000001 BTC, known as a satoshi), making it more flexible than gold in terms of liquidity.
When it comes to investment strategies, gold is typically used for long-term capital preservation, while Bitcoin can serve both as a long-term asset and a speculative investment. Due to Bitcoin’s volatility, investing in it requires greater market knowledge and risk management.
Gold and Bitcoin in National Reserves
For decades, central banks have stockpiled gold to safeguard economic stability. Governments around the world recognize its independence from financial systems and universal acceptance, making it a key component of monetary policy.
Bitcoin is beginning to enter similar discussions. Countries like the U.S., Brazil, Switzerland, and the Czech Republicare exploring its role in national reserves alongside gold and oil.
Additionally, the Trump administration, with Elon Musk playing a key role, has outlined plans to position the U.S. as a global leader in cryptocurrency adoption, offering crypto-friendly regulations. Meanwhile, El Salvador, under President Nayib Bukele, continues to expand its national Bitcoin reserves.
Gold and Crypto Now Available at Mennica Skarbowa
Through a partnership between Ari10 and Mennica Skarbowa, investors can now buy Bitcoin and other cryptocurrencies directly at Mennica Skarbowa locations. This service, launched in September 2024, also enables seamless conversion between gold and cryptocurrencies, offering a flexible investment option in 15 cities across Poland.
For details on branch locations and how to prepare for your visit, check out MS Trade.
Final Thoughts
While gold and Bitcoin are fundamentally different, they complement each other well in a diversified portfolio. Gold provides stability and capital protection, whereas Bitcoin offers high-growth potential with higher volatility.
A combination of both assets allows investors to balance risk and reward, leveraging gold’s security alongside Bitcoin’s innovation. Given their scarcity, both gold and Bitcoin are recognized as some of the hardest assets in the world.
Disclaimer: This article was created in collaboration with Mennica Skarbowa and highlights investment opportunities in gold and Bitcoin. The information provided is for informational purposes only and does not constitute investment advice, recommendations, or an offer. Before making any investment decisions, conduct your own analysis or consult a professional.