Is Bitcoin the new Gold?
It seems that there is no stopping the march of the Bitcoin. Although a lot of people scramble to point out that it is all a bubble, the coin keeps reaching new heights year after year. Is the Bitcoin here to stay and is it the new digital equivalent of gold?
Tech investor Peter Thiel, co-founder of Paypal and known for his investment in Facebook has recently voiced his opinion about the daddy of all altcoins and cryptocurrency in general.
Thiel doesn't see a future in Bitcoin as a alternative currency but does acknowledge the fact that like gold Bitcoin has value and that just like Gold has potential as a store of value.
Bitcoin is hard to mine and and becoming increasingly precious just like gold. It is not the only similarity between Gold and Bitcoin. Just like gold Bitcoin serves as a standard for other currency. If the value of Bitcoin goes down it tends to drag the other cryptocurrency down with it.
In more ways than one Bitcoin is turning into the digital equivalent of gold, the standard for all other currencies. It is a bit ironic if Bitcoin really turns into the digital Gold Standard because its main purpose was to be the alternative to the Fiat currency and its Golden origins.
Bitcoin faces a number of challenges however. Not so long ago the American Bank Merril Lynch voiced some criticism about the Bitcoin and detailed why the coin would never succeed as a payments system. The lack of speed and small transaction volume (compared to Fiat currency) but most importantly the scalability (more the lack of) are according to the bank the most important factors why Bitcoin can not compete with traditional payment processing companies such as Visa and Mastercard.
The Bitcoin transaction volume averages around 200,000 a day which seems like a lot but compared to the volume of dollar or the euro at 5.1 trillion (yes that is not a typo TRILLION! 5,100,000,000,000), you can see why Merril Lynch sees it as a small market
Another challenge is the bitcoin community. The decentralized nature of the Blockchain can lead to conflicting opinions about the direction of the coin. The recent forks are proof of that fact. Although it seems that after each fork the Bitcoin bounces back stronger than ever.
A lot of people have a lot to say about the Bitcoin but the coin doesn't seem to bothered by the criticism and just keeps on going and increasing in value. At this point it looks that nothing is able to stop the Bitcoin from becoming a force to be reckoned with.
The Bitcoin has faced many obstacles but has conquered all. Even the recent bans on ICO's in China has not stopped the growing popularity of the cryptocoins. Bitcoin leads the charge with a whopping 5,000 dollar value per coin at time of writing and I have no doubt that this will only increase over time.
Satoshi Nakamoto's design allows for a maximum of 21 million coins of which around 16.6 million are in circulation. When the cap is reached we can only guess what will happen next but my two cents (for what they are worth) is that Bitcoin will at least take its rightful place as the official Crypto Golden Standard.
img credz: pixabay.com
Nice, you got a 4.0% @minnowbooster upgoat, thanks to @xervantes
Want a boost? Minnowbooster's got your back!
The @OriginalWorks bot has determined this post by @xervantes to be original material and upvoted(2%) it!
To call @OriginalWorks, simply reply to any post with @originalworks or !originalworks in your message!
I think the biggest reason for Bitcoins volatility is it is trying to find it's true value. Right now no one knows if Bitcoin should be worth $1000 or $100,000. Once it finds it's true value, I think it will become stable. Until then, it will be a wild ride.
The true value can only be determined when all 21 million coins are in play and even then will it be difficult to ascertain the true value. It also depends on the role that BTC will play... Currency or standard for crypto.
First off fantastic post, it's very appealing to look at and well laid out! 2nd Bitcoin and cryptos I believe are the future of currency..whether they're govt backed or not I don't know? I doubt the major players will let the power out of their hands. I always hear ppl question whether or not Bitcoin will replace gold but the fact is no it never will. Gold has utility, Bitcoin just doesn't. Turn the power off BTC disappears and for that reason govts won't put their nations security in it. Gold is a store of value and its been that way since the dawn of man, because cryptos have been skyrocketing for a very short time that doesn't mean everyone should put all their eggs in that basket and especially not nations. Getting back to the utility part of gold, it has functionality so even if it's not backing the currency or used as a direct exchange of monetary value its still valued and technology demands its use. If an emp blast, hacking or major storm cripples the power grid gold doesn't disappear and this is why cryptos will never replace gold. Also the gains cryptos have enjoyed could very well come crashing down, there is volitility there but noone wants to discus that. Even tho I believe in them I also believe gold not only still protects against the lousy dollar it's also so manipulated were going to see major runs one day in the near future that could make cryptos gains seem like child's play. This is just all my opinion but u can't argue with golds place in history and the future of tech. Obviously on a platform set up on blockchain and paying in a crypto my views are not as well shared and everyone will tell u yes cryptos are going to defeat gold. Point is they don't have to compete with eachother and gold isn't going anywhere. Thx for taking the time to read my comment
I could have known, no.. SHOULD have known that I would get a lengthy reply from you @goldenarms. I kinda agree with you with the tech part being Bitcoin's achilles heel. But although it is possible it would take some major effort to shut down the entire blockchain due to its decentralized nature. I also don't think that BTC will replace gold but just act like it's digital counterpart. In the end when the zombie apocalypse finally hits, I agree with you...it wil be better to have some silver 'n gold in your possession :).
This wonderful post has received a bellyrub 27.51 % upvote from @bellyrub thanks to this cool cat: @xervantes. My pops @zeartul is one of your top steemit witness, if you like my bellyrubs please go vote for him, if you love what he is doing vote for this comment as well.
Sneaky Ninja Attack!!
You have been defended with a 48.78 % upvote!
To help keep my Jōki (蒸気) power strong I rely on the townspeople of Sōsharumedia (ソーシャルメディア).
I was summoned by: @xervantes.
I have done their bidding and now I will vanish...
woosh
Big banks have been failing us for years. At this point Bitcoin is beyond gold in value. I think some people are just afraid of change. We live in an ever evolving world. Coins are faster and more efficient to exchange than fiat currency.
All this talk about a bubble and I don't even believe the bubble has started yet. I have noticed a lot of talk about coins in the news and online forums nowadays. Its gaining interest and I believe the market cap is going to explode in 2018.
First they ignore you, then they laugh at you, then they fight you and then you win. I think we are moving past the laughing phase and coming to the fighting part.....victory is near
Bitcoin is Bticoin..Just another store of value..too many comparisons with gold.
Gold is the standard we are used to so it is natural that we draw comparisons. Eventually this will go away as we focus on the benefits of the new and let go of the old. Or in this case enjoy both.
I agree, I don't see an alternative to it becoming the gold standard. Look at what the abandonment of that standard has done to the world economy. Many people are reluctant to accept it because they struggle with limiting beliefs... this video helped me to understand it better.
https://www.facebook.com/270053853368421/videos/495569124150225/