[2017-09-06] Bitcoin's Golden Future

[nickbelski]

Could bitcoin be the next gold?

The idea has a lot of intuitive appeal. Gold bugs and bitcoin fetishists tend to share a deep distrust of fiat currency and the nation state, an impregnable bullishness about their favored asset class, and an obsessive attention to details of market movements combined with a blithe disinterest in bigger-picture issues.

The idea has become particularly popular as the value invested in bitcoin and other cryptocurrencies has marched upward over the past year. Even after this week's selloff, prompted by China declaring initial coin offerings illegal, the value of all cryptocurrencies in circulation is around $155 billion, according to Coinmarketcap.com.

Digital Revolution

The value of all bitcoins in circulation is moving close to the value of gold held by ETFs



That may sound small compared to the $7.8 trillion notional value of the world's 187,200 metric tons of gold. At the same time, it's already about a tenth the value of the 40,000 tons of yellow metal used for investment as bullion bars and coins, and has overtaken the amount held in gold exchange-traded funds. At more than $78 billion, Bitcoin alone isn't far from overtaking the $90 billion-odd invested in all gold ETFs.


https://www.bloomberg.com/gadfly/articles/2017-09-06/seventy-eight-billion-reasons-why-bitcoin-s-the-new-gold

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[iamTom123]

There is now a  new status bestowed on Bitcoin and the title is the same one which the physical gold is known for throughout the ages...being the safe haven. Safe haven can mean that it is the asset which many investors may run into in times of financial, political or any type of crisis that can affect any or all parts of the world. That rule has been played by gold since time immemorial because it is so stable and its value would not diminish easily and can even go rocket during hard times.

The safe haven status was tested at the height of the recent Nokor-USA Word War when the North Korean supreme leader threatened to gift America with bombs to be delivered on Guam. Of course, most of those words are just bluff and Nokor is really known for its tantrums and antics. Financial analysts were expecting a surge on gold investment but instead the surge came on Bitcoin. Hence, the title as safe haven is now also attached to the King of the Cryptos.

I am sure that the recent China news on banning altogether the issuance of ICOs will be slowly ignored by the market as Bitcoin is now slowly surging back...this time it is doing it with no fanfare and without the unnecessary very optimistic predictions of rise in value.

Much as we don't need the prophets of doom and gloom, we should not also be swayed that much by the prophets of profits and boom.

[chrissss]

yes but may be turn into sand

after 10 year bitcoin will be 10,000 or 0.5$

[Wekkel]

yes but may be turn into sand

after 10 year bitcoin will be 1,000,000 or 0.5$

You forgot a few zeros 

[SvenBomvolen]

I can understand why bitcoin compared to gold so often. First, bitcoin has the main qualities of gold: you can't print, and the number is limited (about 21 million). Second, they perform transactions faster and cheaper than a Bank and other bureaucratic structures, which charge a fee, allowed to send money only a certain amount and require a lot of paper. Third, Bitcoin is as universal as dollar.
Some people believe that bitcoin may overtake gold by importance on the market. Bitcoin can replace gold, which is considered as a "safe haven" for investors for years. The value of gold is relatively static against the growth of bitcoin. This is going to change the game's rules, enhancing the legitimacy of the currency and, probably, accelerate the substitution of gold.