Daily Management Review

For The ‘First Time’ Ever Bitcoin Overtakes Gold Trading


03/13/2017


Bitcoin has similar features as gold, while its popularity within a short span of time suggests promising future that could end the present currency system.



Even though the trading of gold dates back to “hundreds of years”, lately the less than a decade old bitcoin crypto-currency seem to challenge the former. Given “meteoric rise” of bitcoin, on the 3rd of March of 2017, marks the first time that the new comer beat gold for the “first time”, whereby “trading at US$1,290 compared to US$1,228 for an ounce of gold”.
 
The scare availability of gold along with its “nonreactive” nature make gold a valuable item to invest in. However, that does not take away from gold’s “usual market fluctuations” just like any other commodity, while bitcoin will hit a stable ground once it “reaches its full potential”.
 
In fact, the growing popularity of bitcoin continues as various companies like “WordPress, Overstock.com and Reddit” now accept payments in bitcoin currencies, while through “Windows 10 and Windows 10 Mobile platforms” Microsoft is already accepting “bitcoin payments”.
 
Moving out of “virtual space”, earlier this year, bitcoins made its entrance in stores, wherein people “can buy bitcoins for euros, and vice versa”. Till the current month of March 2017, as many as around “16.2 million” bitcoins are in the circulations. According to the wire:
“The supply of coins grows steadily because of the way bitcoin is programmed. Each “miner” (“mining” is lingo for the discovery of new bitcoins – anyone with computer knowledge and access to blockchain software can act as a miner) introduces new coins to the supply at a rate of around 12.5 coins every ten minutes”.
 
As more and more traders gain their confidence in “alternative” investment form, bitcoin has a future “as a possible investment alternative”. Moreover, bitcoins features of “limited global supply, maintaining value and hedging against global market volatility” makes it similar to gold. The exuberance around the “bitcoin investment” pushes it ahead of any other precious metal, whereby “generating an annual return of 155% compared to gold’s annual loss of 6% during the same time period”.
 
The demand of bitcoin from the “developing countries” make it “increasingly popular”. The prospect of the possible “trade war” between the U.S. and China adds to bitcoins promising future, whereby strengthening the testament towards bitcoin’s “increasing attraction as a hedging tool”. Furthermore, one sees that:
“When Cyprus’s economy crashed in 2013, the price of bitcoins spiked as people resorted to other forms of payment than the national currency. In 2015, when the Chinese currency was in free fall, people in the country turned to bitcoin alongside gold”.
 
While, after the vote in favour of Brexit, within a day’s time bitcoin gained its value over “US$100” as some amount of “speculative money” made “its way to bitcoins” from yuan and pound. Seeing the “dominance” of bitcoins, BoE came up with a “white paper” that investigates in the “possibility of central banks minting their own cryptocurrencies”.
 
In fact, the wire also added:
“Bitcoin’s appeal, compared to gold, comes from two factors. First, it can be used as a easy medium for payments (for a limited but growing number of transactions), which gold cannot replicate. And with their limited supply of 21 million, bitcoins are likely to attract higher demand compared to gold”.
 
 
References:
thewire.in 







Science & Technology

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

Based On One Photo, Research Shows A.I. Can Detect The Sexual Orientation Of A Person

Cyber Crime Risks Are Substantial, Systemic, Says SEC Chief

Tech Titans, Amazon & Microsoft, Partner To Integrate Their Respective A.I. ‘Voice Assistants’

SpaceX Selects Technical University Team’s Hyperloop As The Winner Of The ‘Fast Pod’

Market of autonomous cars will accelerate by 2025

AHA Customers In Iceland Enjoy The First ‘Drone Delivery Service’ In The World

Wal-Mart to unite with Google's voice platform

World Politics

World & Politics

Strong 3.4 magnitude earthquake detected coming from North Korea’s nuclear test site

Even As Kim And Trump Trade Threats, South Korea Approves $8 Million Aid For The North

From October 1 Uber is banned in London

Concerns about the far-right party are growing in Germany

Fight for clean air: 7 countries against internal combustion engines

Japan, India Agree To Deepen Defence With China In Mind

Myanmar's Rohingya Crisis May Be Taken Advantage Of By Terror Groups

The French people voted for Labour Reforms, there is no turning back: French Prime Minister Edouard Philippe