The Gold Standard: Bitcoin Price Stability at its Best since 2010
The last 24 days mark the longest period in which bitcoin prices have been less volatile than gold prices, going back to 2010, according to The Wall Street Journal. Some see this as a sign of investor perception of bitcoin as a safe store of value. Not one for lack of volatility, bitcoin has witnessed wild price changes from the beginning. Bitcoin watcher Gil Luria, managing director at Wedbush Securities, who covers payments and e-commerce, stated that the cryptocurrency has taken on a role similar to gold as its usage has grown. Holding bitcoin, like gold, can appeal to investors who see....
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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....
A few central banks have started selling tons of gold for the first time since 2010 in order to ease the financial suffering from the Covid-19 pandemic. At $1,875 per ounce, gold prices are down -9.63% since the commodity’s high of $2,075 on August 6. Even though gold has dropped significantly in value in contrast to bitcoin (BTC), gold bug Peter Schiff decided to use the opportunity to rag on bitcoin on Twitter. “If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the Bitcoin bubble is the biggest I’ve seen,” Schiff....
The "Gold Standard" was so far applicable only to fiat currencies. It means, that the currency in circulation in a country is backed by its equivalent worth in gold. Gold was chosen as a standard because it is universally accepted as a standard, and it still continues to be so. Recent days have seen the world gradually deviating from fiat currency to digital currency. Bitcoin and other altcoins are on the rise. Bitcoin is not backed by gold, and its value is decided by demand, supply and the number of transactions happening over the network. Thus making it more volatile compared to the....
Bitcoin has been the world's top-performing currency again in 2015, surpassing the growth rate of major world reserve currencies such as the pound sterling, US dollar and the Japanese yen. Since 2010, Bitcoin has shown an incredible rate of adoption as a currency, recording a staggering 1,698% average increase in price. Below is the annual price change of bitcoin provided by Google Finance: Although the price of bitcoins plummeted by 62% in 2014, falling from US$817 to US$314 on the 31st of December, Bitcoin recovered in 2015 and recorded a 37% increase in price since January. The....
50 years ago yesterday, on August 15, 1971, United States President Richard Nixon changed the world with a monetary policy that also led to the creation of Bitcoin. It seems like a stretch, but it all began with the depegging of the dollar from the gold standard. Losing its peg to gold has led the […]