Palash Udhwani an Investment Analyst with explains the similarity between Bitcoin and gold which is a lot by the way. (REUTERS)

Gold vs Bitcoin: Which is the Best Haven to Invest in Diwali?

Palash Udhwani, Investment Analyst at, explains the similarity between Bitcoin And gold which is a lot by the way.

Described as digital gold, Udhwani said, “BTC has a lot of similar properties to it He went, namely global availability, high demand, and low supply. The supply and emissions of BTC in the market cannot be changed because it is algorithmically programmed. The same factor helps drive the price of BTC over time. Total BTC emissions in circulation decrease over time as emissions halve every four years.”

According to data from, the first crypto asset management platform in India, in the past five years, Bitcoin has outperformed gold over Diwali.

Bitcoin saw a gain of 312.5% ​​on Diwali on October 19, 2017, while gold saw a gain of 29.5%. Moreover, on Diwali held on November 6, 2018, Bitcoin recorded a 196.3% gain against Gold up by 36.1%, however, it is worth noting that the yellow metal witnessed a pickup in gains while Bitcoin’s gains narrowed from 2017 levels. Notably, On Diwali held on October 27, 2019, bitcoin and gold saw their gains narrow to 99.9% and 11%, respectively. However, during Diwali 2019, Bitcoin performed better.

During November 14, 2020, Diwali, Bitcoin recorded a gain of 18.7%, while gold fell by 11.6%. But on Diwali on November 4, 2021, bitcoin fell dramatically by 68.9% against gold, which was down only 6.7%. In 2021, gold will outperform bitcoin. In general, in 5 years, Bitcoin has given more returns than gold.

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BTC returns may sound attractive, but the broader crypto landscape offers us many opportunities for higher alpha mining. (Congee data)

Over the five years, while the average return on investment in gold has been around 11%, the same for BTC is around 111.7%.

For a competitive quantitative analysis, Odwani said, if you buy gold with a value R50,000 per year starting from 2017 on Diwali, your current portfolio value on an investment RIt would have been 2,50,000 R2,79,150. If you bought BTC with the same, the return will be R5,29,250.

BTC returns may sound attractive, but the broader crypto landscape offers us many opportunities for higher alpha mining, said Udhwani. If you take positions in BTC along with a bunch of promising quality altcoins, a similar trend can be seen in the same.

Odwani said, giving an example, you invest about $600 R50,000, across six good quality cryptocurrencies from the previous 5 Diwali. The same with BTC combination would have given a return of 659.624%, pure altcoin

Playing yielded a 1207% return. The altcoins used here in the strategy are ETH, BNB, LTC, XRP, ADA, and LINK.

According to the expert, BTC, being a vital asset with a history of more than a decade, has also inspired a lot of other decentralized projects and protocols, which offer huge bullish potential if appropriate strategic positions are taken and risks are managed.

Speaking about the current state of the bitcoin-gold relationship, Oudwani said, until the market reaches the peak of the hardening, pressure on gold and other semi-investment metals such as silver and platinum is likely to continue. As investors are drawn to a strong dollar despite rising interest rates, the correlation between bitcoin and gold has reached its highest levels in the past 12 months.

Odwani also added: “Although Bitcoin is seen as a ‘digital gold’ and an inflation hedge, investors don’t agree as much as the yellow metal. With inflation rising over the past several months, the value of Bitcoin has risen dramatically and gold has fallen. This results in a correlation at the highest level of the year. At +0.4, a strong dollar and higher bond yields may lure investors away from the precious metal and Bitcoin.”

On Saturday, at the time of writing, Bitcoin is trading above the $19,200 mark and its 24-hour gain is around 1.5% on CoinMarketCap.

According to good returns data, 22 karat gold is available in India at R47000 in 10 grams on Saturday until R750 from the previous day. While the price of 24 carats in 10 grams is R51,280 pieces higher by R830 from the day before.

Meanwhile, on Friday, at MCX, the December 5 gold futures contract expired at R50,635 by R492 or 0.98% from the levels of the previous day.

Disclaimer: The opinions and recommendations above are those of individual analysts or brokerages and are not issued by the mint.

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