What Is The Difference Between Bitcoin, FOREX Gold? ‘A Tripod Theory’ [Revised]
Written By: Patrick “PK” McDonnell
As Bitcoin and it’s counterparties known as “altcoins” enter the mainstream many investors are seeking information on the mechanics of trading these revolutionary peer-to-peer niche oriented decentralized global cryptocurrencies.
Bitcoin, forex and gold have many similar yet distinct differences that make each a unique and viable investment vehicle. Bitcoin is a “hybrid” of both forex and gold structured to trade like a stock with stop loss protection and profit objective orders which help preserve capital and ensure profits through forex like market volatility.
Bitcoin like gold is viewed by some as a viable long-term storage of wealth with many enthusiasts dubbing it “digital gold” due to the mining aspects involved that reward virtual miners Bitcoin for solving encrypted mathematical equations while keeping the underlying network (the blockchain) in sync. In theory, “Like gold as the supply becomes more and more limited the demand can increase value over time.” Bitcoin has a cap in place that will only allow 21 million coins ever to be mined giving it a controlled supply and rarity unlike the never ending printing of US Dollars.
“Because the monetary