Is The Bitcoin Value Greater Than Gold?
As the Bitcoin value peaks, the value of gold declines. This is due to the perception of the Bitcoin, and the way its value has inflated in recent years. Google search trends have revealed the Bitcoin is more searched for than Gold, for the first time in its history.
Bloomberg reports on Bitcoin Value
The search term ‘buy bitcoin’ is more frequently searched than ‘buy gold’. This is amazing when you consider gold has always been considered the most valuable element to mankind. Does this new evidence suggest the Bitcoin is taking its place? Buying an ounce of gold actually costs less than the price of one Bitcoin, another first that’s difficult to comprehend. With so many firsts, is there reason to be believe this change is permanent?
US Stock Market
Experiencing all-time highs day after day, changes to the Stock Market are a big reason why the cost of gold has decreased. This is according to Adrian Ash, a research director for BullionVault. As the Bitcoin value peaks, it distracts investors from their normal practices. When looking at gold profits from 2017, you can understand why we’re witnessing a shift. They are unimpressive to say the least, causing investors to explore alternatives.
30% Decline in Monthly Gold Trading
To support the previous paragraph, evidence suggest a 30% decline for October compared with last year. This occurred as gold dipped six percent in September from previous one-year highs. Blockchain technology is changing the precious metals industry, which gets backdoor innovation from new developments. It has been reported the UK’s Royal Mint trialed a Gold tracking system to great success, with 50,000 blocks verified to date.
The Value of Gold
Gold has appreciated by 11% this year, while Bitcoin value has increased by a staggering 600%. It is clear to see which investment is best, and the Bitcoin value peaked at $7,400 just recently. Reports from the New York Times suggest Wall Street investors are putting their money where their mouth is. For them, investing in the coin is a wise move, and more and more hedge funds are focusing on cryptocurrencies as we speak.
The Chicago Mercantile Exchange (CME)
Have expressed an interest in trading bitcoin futures, giving credence to cryptocurrency. If the experts are to be trusted, investing in the Bitcoin is a great decision. The Bitcoin value is set to continue increasing, though some suggest uncertainty, and feel fear over Bitcoin derivatives not being regulated strictly.
Conclusion
The Bitcoin seems set to become an asset like gold or stock. If Reuters are to be trusted, the market will be regulated in the foreseeable future. The Bitcoin will become a tradable instrument with rules, though regulators must approve these plans before they go ahead. Most believe Bitcoin value will continue rising, but some respectable figures are skeptical. For these experts, the situation is a bubble that will blow up in people’s faces, so it will be interesting to see how things unfold.
Note: This article was contributed to ValueWalk.com by Austen Lenihan.
Category: Commodities
