Post by Admin
2017-11-23 16:50:36
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5 reasons that the Bitcoin never replaced gold

Electronic money in the future
Currently, the incredible increase in the value of Bitcoin, who is still on the sidelines is starting on his own not to buy it when it was released for the first time. Sure, they now are millionaires.
But the rise of the Bitcoin and other electronic currencies there really is an indication of the value of money?
Seems like more and more people justify the investment in electronic money – even at current record prices-by claiming that they are a proved effective against the stability of the currency.
Here are 5 reasons are experts of electronic currencies:
1. Electronic money just like a coin system than you think
"Money" is defined as a type of currency to be legal tender but are not backed by a physical commodity.
Since the United States abandoned the gold standard in the years 1970, this has been the case with all of the major currencies, including the U.S. dollar.
Since then, the money of the United States has continued to grow, so much debt countries. In contrast, the purchasing power of the dollar has fallen.
The strong increase in the gold price started right around the time when the collapse of the Bretton Woods agreement in 1971 of u.s. paper dollars and can not switch to gold again. A clear sign of the decline of purchasing power of the dollar since moving to a pure currency system.
Clear that, the term electronic money part fits the definition of money. They may not be legal, but they were not backed by any kind of physical goods. And while the total supply is artificially limited, restricts that is just ... well, artificial.
You cannot compare that with physical limitations for the supply of gold.
Some countries also are exploring the idea of introducing the electronic currency backed by the Government, this will bring them closer to monetary status.
2. Gold has always had and will always have a market.
A property is only valid if others are willing to buy and sell goods, services or assets.
Gold is one of the most valuable assets in existence. You can convert it into cash on the spot, and its value is not bound by national borders. Gold is gold-wherever you travel in the world, you can swap gold for any local currency, would you.
Also can't talk about electronic money. Although they are accepted in many places, the widely accepted, the mainstream is still a long way.
What makes Gold become loose as its market scale. Of a property market grows the more the loose. According to the World Gold Council, the total value of all the gold mined was about 7.8 trillion dollars.
For comparison, the total size of the market for electronic money of about 161 billion as in this article-and the market is divided among different currencies 1,170.
It was a long ordeal to become and be widely accepted as gold.
3. The variety of electronic money will be cleared.
Many Wall Street veterans compare the increase current electronic money with the Internet in the early 1990 's.
Most, the stock had risen in the first Internet waves of the Internet craze has been cleared after the dot-com bubble burst in 2000. This collapse has made more sustainable Internet companies such as Google and Amazon grow more powerful.
This can also occur with electronic money. Most, of them, will be wiped out in the first serious adjustments. Only a handful will become standard, and no one knows which one at this point.
And if big countries like the US to jump in and create a digital coin of them they will make the same money "private" illegal competition. This is no different than releasing the paper currency by investors discovered illegal (although they are legal in the era of free banking in 1837-1863).
Most, the stock had risen in the first Internet waves of the Internet craze has been cleared after the dot-com bubble burst in 2000. This collapse has made more sustainable Internet companies such as Google and Amazon grow more powerful.
This can also occur with electronic money. Most, of them, will be wiped out in the first serious adjustments. Only a handful will become standard, and no one knows which one at this point.
And if big countries like the US to jump in and create a digital coin of them they will make the same money "private" illegal competition. This is no different than releasing the paper currency by investors discovered illegal (although they are legal in the era of free banking in 1837-1863).
4. Lack of security undermined the effect of the electronic money.
Security is a major obstacle for the community of electronic money. Seems like every other month has some news about a big hack involving an exchange of Bitcoin.
In the past few months, relatively new Ether has become a target for hackers. The total amount stolen was up to nearly 82 million dollars.
Bitcoin, of course, is the biggest target. Based on current prices, just one robbery happened in the year 2011 lead to hackers over 3.7 billion value of the bitcoin-a staggering figure. With the security issues surrounding the electronic money has yet to be fully adjustable, our ability to a proven effective is being compromised.
The last time you heard of a gold robbery is when? Not to mention, the fact that most of the archive has full coverage.
5. Hype and speculation continued pushing the value of electronic money
Since the beginning of the year 2017 to date, the value of Bitcoin has quadrupled-a tremendous value has made the investors rushed to invest in electronic money. But this can be nothing but a market bubble could burst anytime?
One of the Fund managers betting the world's most successful-Ray Dalio of Bridgewater Associates, he certainly did see them seem so.
September 2017, he told CNBC, "is not a property inventory effectively as it is highly unstable, unlike gold. Bitcoin is a highly speculative market. Bitcoin is a bubble. "
The skyrocketing price of Bitcoin seems only to see this point. With the level of such extreme fluctuations, the value of the currency as a secret service betting was the problem. Most people buy them because the only reason to sell them later at a higher price.
This is the first major leg muscles rather than hedging.
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