Cryptocurrencies such as the famous Bitcoin have made the news in recent years. Some analysts feel that they may become a viable alternative to the traditional credit card while others tout their anonymous nature, which is ideal for performing discrete transactions with other parties.
However, it’s interesting to note that Bitcoin is now being valued as a commodity. To illustrate this fact, Bitcoin is currently priced more than gold in terms of equal amounts.
To appreciate the potential ramifications of how Bitcoin could impact the marketplace in the future, it is important to examine the present gold prices and how they relate to cryptocurrencies.
At the time that this article was written, gold was hovering around $1,233 per ounce. Some investors are surprised at this bearish flavor, as a handful predicted that gold would benefit despite everything that is going on in the Trump administration.
This simply hasn’t happened, and while we have witnessed some modest gains, the yellow metal still seems to be floating amidst the flotsam and jetsam of uncertain times.
Let’s look at Bitcoin price. Bitcoin is currently valued at approximately $2,600, a far cry than the price of gold. This has investors questioning whether Bitcoin will eventually become a viable form of trading.
Indeed, there have already been some who have capitalized on such upward momentum in the past. The main questions involve the mechanics of Bitcoin, who is using them and if they can be traded in the same manner as gold.
Bitcoin has already featured prominently in large transactions. For example, a yacht valued at an impressive $11 mln dollars was purchased as far back as 2014. We can only assume that other private transactions have occurred for far more virtual money.
Will we witness a time when Bitcoin trades like gold? What we can say for sure already now is that its current momentum has definitely caught the attention of investors.
