(Photo credit should read MANJUNATH KIRAN/AFP/Getty Images)
Bitcoin has left gold in the dust in recent months.
The Bitcoin Investment Trust Shares have almost tripled in value in the last twelve months, gaining more than 30 percent in the last three months alone. Meanwhile, SPDR Gold shares are down 3.78 percent in the last twelve months and up 4.49 percent in the last three months.
Source: Finance.yahoo.com 3/3/2017
Apparently, Bitcoin is more popular than gold among investors.
Is it just hype or something fundamental about the digital currency. It’s hard to say. What’s not hard to say is that there’s a growing mistrust of national currencies, following dubious government policies, which has pushed people into Bitcoin.
The last three months in the digital currency rally, for instance, has coincided with India and Venezuela’s efforts to get rid of old currency notes.
Prime Minister Modi and President Maduro have very little in common — except they have pursued policies late last year that replace large notes in circulation with new notes (India) or with coins (Venezuela).
For different reasons, of course. Prime Minister Modi has been trying to fight corruption, a widespread problem in India. And President Maduro has been trying to fend off capital flight from the ailing Venezuelan economy.
Then there are a couple of advantages that make Bitcoin better than gold, at least for the millennial generation, which understands the digital currency better than the baby-boomer generation.
Unlike gold, for instance, Bitcoin is a convenient medium of payments around the globe, though for a limited number of transactions.
Then, there’s scarcity. Bitcoin supply is expected to be limited to 21 million. The supply of gold, on the other hand, is expected to increase anytime its price rises, as it provides an incentive for gold miners to mine for gold.
To be fair, gold has its own advantages, too. It can be used as an outright gift, to make jewelry, and in manufacturing of certain products.
That’s why investors shouldn’t rush to substitute the yellow metal for the digital currency in their portfolio.
Especially if they don’t quite understand the nature of the digital currency.
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
