But that is hardly the case. That ecosystem enables financial transactions between two parties, both anonymously, and at very low costs. The fact is that that ecosystem could be easily replicated with an alternative to Bitcoin. So, while the number of Bitcoins we can mine is limited, the amount of alternative ecosystems that could emerge for Bitcoin wannabes is not. In fact, even today, there are already 12 different alternatives to Bitcoin, including Litecoin, Peercoin and Primecoin.
However, there is one area in which Gold and Bitcoin have something in common and, unfortunately, for Bitcoin bulls, it is in their vulnerability rather than strength. Both Bitcoin and Gold do not pay interest like a currency, nor a dividend like a stock.
And when interest rates rise the allure of Bitcoin and Gold quickly fades. Because, simply put, there are better alternatives. Bitcoin trade volume chart by honey the past 6 months, as the Fed resumed its tightening trajectory, Gold has trended lower. In fact, not too long ago, inBitcoin seemed invincible.
But what happens when interest rates rise further? The Fed is already signaling a rate hike this month which could curb risk appetite, as well as reduce the attractiveness of holding Bitcoins relative to other investments remember, Bitcoin pays no interest.
Without risk appetite on the one hand, and with higher Federal Reserve benchmark rates on the other, there will simply be no incentive to hold Bitcoins. Just like Gold, you need to sell it to buy an asset that could protect you in an environment with high rates and low-risk appetite.
You cannot buy bonds or stocks and keep holding Bitcoins; you cannot even hold a savings account in Bitcoin. Ultimately, you bitcoin trade volume chart by honey have to sell it, just like Gold.
But, unlike Gold, the Bitcoin market hasn't figured that out yet and that spells trouble. Chart courtesy of Blockchain. This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended bitcoin trade volume chart by honey investment advice.
This contributor is not receiving compensation other than from INO. If the CIA or some organisation take down key computers doing Bitcoin validations If a government edict bans the ownership of Gold Which would you rather have in your possession until the dust settles: Gold is the clear winner. Thanks for the analysis. I might mention two points that really are part of the allure of Bitcoin.
One, it cannnot be confiscated by any government and it is not subject to any government capital controls. Chinese businessmen are trying to get their wealth out of China fearing more to come in the way of capital controls. Bitcoin is the most expedient way to do so.
Two, bitcoin is not subject to central bank manipulation. It is well bitcoin trade volume chart by honey that spot gold prices have been manipulated to the downside for years by central bank intervention. And, perhaps a third negative for gold would be to convert to some useful spendable currency.
Bitcoin does not have that problem. To me, bitcoin makes more sense than owning gold if for no other reason than convertability. No sorry mate gold is not manipulated down. That is a conspiracy theory.
It just went high when everyone panicked about the safety of the financial system. It's not a big enough market for institutional safe haven so relies on public using for this purpose. The Ides of March Approach.
You must have registered a GPG key with the bot for this to work. Several proofs are provided free of representation theory on which the originals were based. Bittrex is a secure US- based cryptocurrency exchange for the highest market cap coins.