Economics and Administrative Sciences

A debate on Crypto currencies and gold

Cyprus International University (CIU), Faculty of Economics and Administrative Sciences, Departments of Accounting and Finance and Business Administration organized a panel where the discussants debated on crypto currency and gold as an investment tool.

At the event held in the conference hall of CIU Çevik Uraz Center, the students of the Department of Accounting and Finance and the Department of Business Administration debated topics such as the advantages and disadvantages of crypto money, gold, historical rates of return, ease of use as a payment instrument, security, tax applications and protection from inflation.

Two students were the debate moderators; and the students, who participated in groups of six from both departments, in 90 minutes put forward their arguments and carried out the discussion successfully.  

Assoc. Prof. Dr. Asil Azimli from the Faculty of Economics and Administrative Sciences stated in the debate that crypto currencies are a currency that is not controlled by a central authority, “Although they were created to be used as a payment method that can replace traditional money, they quickly gained popularity as investment tools.”

Noting that Bitcoin emerged in 2009 and developed dramatically in the crypto money market, Azimli announced that the total market value of cryptocurrencies reached three trillion US Dollars in November 2021, but fell below the one trillion level in the following eight months.

He also added that there are studies showing that crypto currencies provide various benefits when included in portfolios of traditional investment assets such as stocks, bonds, commodities and currencies.

Stating that gold, which has been used as a value indicator, trade element and investment tool for many years, offers investors, who have been looking for a safe haven, the opportunity to protect their wealth in financially turbulent times, Azimli said, “Although gold does not offer high returns in a short term as crypto currencies do, still it is an investment with less risk. The short-term losses in the crypto money market have not been observed in gold.”