Is Bitcoin the new Gold for Investors?
The amazing rise of Bitcoin
Upcoming support from Institutions
The Chicago Board Options Exchange (CBOE) said it plans to offer Bitcoin futures by early 2018, while the U.S. Commodity Futures Trading Commission (CFTC) provided approval to LedgerX to clear derivatives.
With the monetary policy in the U.S. getting tighter, there are few attractive investment opportunities. Stocks are at all-time highs and bonds are steady. This has driven many to Bitcoin and other cryptocurrencies.
Bitcoins are not regulated by any bank or government. The cryptocurrency is decentralised and can be accepted anywhere in the world. Without regulations, there have been misuses. However, that has not stopped many offline shops accepting Bitcoins.
Bitcoin is rare
Bitcoin beats Gold at being rare. Gold was considered to be a rare precious metal. However it cannot beat Bitcoin when it comes to rarity.
Why Bitcoin is not the new Gold
Gold has a baseline value
The precious yellow metal derives its baseline value from being used in jewellery. Its price cannot drop below a certain value as it would hit its demand. Gold has always been seen as a store of value during times of crisis. On the other hand, the price of Bitcoin is speculative.
Gold has trusted Exchanges
The exchanges in which Gold can be purchased have been running for many years now. The same cannot be said for Bitcoin. There has been a major failure in MT.GOX. However, the number of exchanges for Bitcoins and other cryptocurrencies have been growing.
Conclusion – Bitcoin the new Gold
For me, Bitcoin is the new Gold. I never invested in Gold, but being actively online and interested in technology drove me towards Bitcoins. If you are like me, you will find Bitcoin easy to buy and trade online. Also its easier carrying a Ledger Nano-S then a Gold bar.
Let me know your thoughts in the comments section below. Also feel free to share this post so that your friends can also learn how Bitcoin is the new Gold.