Choosing Between Gold and Bitcoin
Gold has been a medium of exchange for thousands years with an indisputable store of value, which, however, yields no return and has a high opportunity cost compared to assets such as bonds or equities. On the other hand, the Internet Age has brought about a fierce competitor, known as bitcoin. Since its launch in 2009, the digital currency has been in the middle of attention, whether because its value declined close to the $240 level, after having surpassed the $1,000 milestone in 2013, or because regulatory agencies are trying to figure out whether a sustainable regulatory environment....
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Bitcoin exchange Bitstamp has partnered with precious metal traders Moro & Kunst to provide its customers with the option to purchase gold using US dollars. The service is being advertised as a withdrawal option for exchange users, as Bitstamp users can purchase gold directly from the firm's website (see image below), choosing from bars ranging between 1–1000 grammes. After ordering, gold shipments are labelled with a certified tracking number and expedited delivery in two to five days, according to the company. On Bitstamp's website, gold prices are quoted in US dollars and updated every....
Nasdaq-listed company Microstrategy has avoided a “multi-billion dollar mistake” by choosing to invest in bitcoin instead of gold. The company now holds about 108,992 bitcoins. ‘Multi-Billion Dollar Mistake’ Avoided The Nasdaq-listed software company Microstrategy has avoided making a mistake that could have cost the company multi-billion dollars. CEO Michael Saylor tweeted Sunday: If I had chosen gold instead of bitcoin last year, it would have been a multi-billion dollar mistake. It doesn’t help to diagnose the problem if you don’t choose the....
Bitcoin is not a gold standard as it is independent, without the intervention of any central bank or government agency. There has been a lot of comparison between bitcoin and gold in the recent times. Bitcoin has been compared to gold in many aspects. In fact, bitcoin is also called digital gold for a reason due to various similarities it shares with the yellow material. However, referring to bitcoin as a gold standard may not be relevant. The gold standard is a reference to the monetary system that was based on the value of gold. While most countries stopped following the gold standard....
The Winklevoss Twins have described Bitcoin as better than gold because it experiences ‘a lot less volatility’ and is a better store of value at the moment. They cited a Wall Street Journal story in May which described how the virtual currency has been more stable than gold over the last 28 days. Tyler Winklevoss said: “So I think investors who have gold in their portfolio and other precious metals have started to look to Bitcoin as a better store of value. It’s got better characteristics than gold itself. So it’s actually better at being gold than gold. We are seeing investors recognise....
A myriad of gold bugs like to compliment the yellow precious metal for its ostensible scarcity, as estimates say only 2,500 to 3,000 tons of new gold is produced annually. While new gold discoveries have seemingly slowed, investigative studies also show that in some areas, gold is being smuggled into the economy by the ton, and often never accounted for as far as per annum issuance estimates. Recently, reports show a whole mountain of gold was discovered in the Congo, as the Democratic Republic of the Congo is well known for being a region that sees tons of smuggled gold filtered into the....