Gold vs Bitcoin: Diwali is one of the most popular festivals in Hinduism and is joyfully celebrated throughout the country. This festival symbolizes the victory of light over darkness and reminds us that good will surpass evil and wisdom triumphs over ignorance. For many centuries, it has been believed that buying gold during such festival times blesses you with good luck and a prosperous future. Though this belief could be true, is it wise to buy gold as an investment, or should you consider an option like Bitcoin?
If History Is An Indicator
In this article, we will compare the past performance of Bitcoin and gold to get a rough idea of how they react during the festival of lights(Diwali) 2022.
Bitcoin
Source- WazirX
The BTC/INR jumped nearly 15% during the 2021 Diwali. From November 6th to 11th, the coin price rose from ₹446000 to ₹5122000. However, this was a short-term gain for Bitcoin as the global market triggered a bear market.
Furthermore, on Diwali 2020, the BTC price rose 23% in just ten days from Diwali. From November 14th to 24th, the asset climbed from ₹117500 to ₹144000. Moreover, the ongoing rally prolonged to make a swing high of ₹300000 by January 2021.
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Taking a step back in time, in Diwali 2019, the Bitcoin price witnessed a sideways rally from October 27th to November 7th. Though the prices saw a correction later in November, the coin price recovered immediately in the following months.
Gold
Source- tradingview
Except for last year’s Diwali, in which the Gold price per ounce rose 6% from ₹131300 to ₹139000, the asset has underperformed during this festival time.
During Diwali 2020, the XAU/INR pair dropped from ₹141500 to $131000 and registered a 7% fall within a fortnight.
On Diwali 2019, Gold price witnessed price consolidation, where it dropped from ₹107500 to ₹103600. However, the next bull cycle began in late December.
In Diwali 2018, this asset showcased a sharp drop from ₹90000 to ₹85000, and this downfall accounted for a 5.5% loss from November 7th to 30th.
Buy Gold or Bitcoin?
By analyzing these assets’ past performance, it seems that buying gold during Diwali wouldn’t be an ideal option from an investing perspective. Amid the festival, this asset majorly witnessed a loss and dropped 5 to 8%. On the other hand, the Bitcoin price has surprisingly performed well during this Indian festival. This coin price showed 15-25% gains during Diwali.
Moreover, the Bitcoin price is trading at ₹1581837, nearly 70% down from its all-time high of around ₹5120000. Thus, interest investors can advantage of the discounted asset to enhance their portfolio.
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