Here Is Why Internet Currency Bitcoin Will Never be Digital Gold

Bitcoin may be the new big thing in global currencies, but don’t count on it replacing the old, boring store of value, now or ever.

New paradigms often create market bubbles. They are a new technology or idea that will change the world and, along the way, offer investors unlimited profits.

Mania soon takes hold as prices detach from reality and people get rich, at least on paper. The mania soon fades, though, and before long prices fall, sometimes dramatically.

The cryptocurrency bitcoin is a good example of this new paradigm thinking. Bitcoin is a digital currency that is created and held electronically.

At its core is the blockchain, a super database that tracks all bitcoin transactions. Some of its fans think that soon bitcoin use will grow exponentially and offer unlimited profits to investors.

They think that bitcoin will become the gold of the digital era, a safe place to park cash whenever there is a financial crisis and which is beyond the printing press threat of paper currency.

Bitcoin proponents say that it is similar to the Internet in the 1990s and personal computers in the late 1970s. It is a disruptive technology about to go mainstream.

And as investors abandon

Read more ... source: TheBitcoinNews