Is Bitcoin Better Than Gold? [VIDEO]

Several coins positioned on a table to spell the 'Bit' in Bitcoins

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.

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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”.

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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.

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About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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