It’s a question your friendly Gold Enthusiast gets asked regularly these days. “Should I buy gold or Bitcoin?” In case you’ve been living under a rock this year, cryptocurrencies are all the rage right now. Bitcoin skyrocketed from $996 (US Dollars) on Jan 1 to a recent high of $2893, and sits around 2533 this morning, according to Coinbase. Gold, meanwhile, has gone from 1180 to 1290 and back to about 1255 this morning.
Bitcoin’s incredible run is due to increasing speculation in the US and limited governmental acceptance by both Japan and Russia. But the HUGE volatility is keeping a lot of investors on the sidelines.
There are pros and cons to Bitcoin and similar electronic currencies such as Ethereum — they rely completely on functioning technology platforms for one, and on the acceptance of the receiving party in the transaction for another. Security buffs note that the currencies themselves are pretty well secured, but the exchanges and apps they trade through “might still need some work”.
Last year Mount Gox, the first international Bitcoin exchange, failed miserably after a hacker brought down the whole system. That’s something that simply can’t be tolerated when people’s wealth is at stake. So for now your Gold Enthusiast is sticking with other forms of money, but keeping an eye on developments.
Today’s featured article lays out the view of a Price Futures Group analyst. Your Gold Enthusiast is looking for a rational article to feature on the pro-Bitcoin side that addresses the size and scope of the Bitcoin challenges, rather than just saying “Rah Bitcoin” as most seem to.
For a deeper, opinionated discussion on Bitcoin vs. Gold, check out the conversation between Stefan Molyneux and Peter Schiff in the video below.