It seems the battle has been taking shape the last few trading days as Bitcoin per unit reached the POG per ounce. Really? To me Bitcoin being this high compared to gold is ludicrous to even consider based on what each really is. All of the alt-coins seem to be only purchased through bitcoin, which to me STINKS to no end! You cannot duplicate gold and it is a real, tangible asset. It has represented the essence of money as long as we know. Even the bible says that gold is money, for what that is worth. The battle between the two for supreme reign of currency is interesting to say the least. Something will give, and it will be Bitcoin! Naysayers? Love to hear from you Bitcoin supporters.
I'd be very interested who/what is behind BitCoins, if they profit from price increases. My impression was somehow that this has gotten a lot larger than the founders expected, in fact that they thought it would fail? I'd like to understand too if anybody here cares to help clear up some of the mystery.
Otherwise I had a few semesters of economics but never got off the Island where folks were happily trading seashells for goods and services. I guess that was before the conquistadors arrived and enslaved the whole island to work in a gold mine :) - just confused on the whole thing. Bitcoins seem to have a "ponzi scheme" aspect to them - first ones in make money and noise - bitcoin millionares appear in the news, then, the folks in power make off with what is to be made off with or whatever else, and the bunch of johney comes too latelys are left holding their virtual receipts and wondering what happened.
Or maybe not, I certainly don't seem them as being counter market forces in any meaningful way - maybe they both have some attention right now. Maybe Bitcoins are pointing the way to a new virtual future?
Sentiment: Strong Buy
swarm I think that is part of the problem also. What is really behind them? It is the moneymasters? Seems this would limit them and they aren't into that! Are only the peers/investors profiting from Bitcoin? I know the exchanges do! I see it as a symptom, Not to mention it a phantom inventor that supposedly gave out Bitcoins as charity to get the source out to the people? I remember looking at Bitcoin as the possible new currency when it was a couple dollars back after its inception. Looking at its Paypal-similar payment platform it didn't seem feasible. It is rather complex afterall now it seems. Should've paid it more mind.
People holding Bitcoin will likely have to hold for a long time before it is made into a currency for commerce instead of the USD of other. People just aren't ready for it. Maybe Yellen eases us into what may be coming? I cannot predict the future, but I can say that people may need to be familiar with the SDR's and the IMF. Maybe it will be a digital currency or Bitcoin? How many Bits is that to buy? Seems I heard that in Sci-Fi movies. Yellen and IMF is probably where to look for any new future exchangeable currencies. Is the Bitcoin what China wants to be the reserve currency? The world is just too soaked up with what is cool and the controlled media outlets. Who's hot and what not. Corn syrup city!
What I also see right now:
As of yet, one BTC unit has not surpassed the POG per oz. Just as I expect sane, rational people would do, people are trading in their Bitcoins for Gold...Not the other way around. NOBODY is selling their gold to buy Bitcoin! Would you? Love to hear from someone that would or better yet, IS!
Bitcoin supporter here, who also owns gold, and recognizes the merits of both. Why do you assume they are in conflict? Bitcoin can do things gold can't and vice versa, they are complimentary. I can't buy stuff online in gold, exactly because it IS a tangible asset and for a long term store of wealth, nothing can beat gold because it IS a tangible asset. So being a tangible asset in an increasingly cyber-based economy has its pros and cons. I think the mistake here is to think people are buying Bitcoin because they think it's a store of wealth. They are not. They are buying it for speculation because they see that it has the potential to be THE global digital currency (an economic niche that has yet to be filled) and due to the way the system is designed, should in the near term, increase in buying power, as we've witnessed. In the longer term, Bitcoin will only be worth anything if you buy stuff with it and as its buying power increases relative to the dollar, and as more merchants accept it, there will be more incentive to spend it, and less incentive just to hoard it.
sugarsail, I wouldn't tell people they shouldn't own both and good for you as I have been contemplating messing around with more Bitcoin. Technology is moving at a RAPID pace and is looking to be TOO FAST. So much so, that the majority of the public simply cannot handle it. What kind of power and system does it take to be able to mine Bitcoins and like? I said that it seems they are competing for the top currency. Let's face it! Neither of them are really legal currency as we know, but both can be sold for local currency. Gold is very rare and we cannot say the same thing about Bitcoin because there can be another and frankly they already is. True, the alt-coiners are just sort of imitations, but when they are trying to market Bitcoin as gold 2.0 and Lite Coin as Silver 2.0, it is getting out of hand. Not to mention that the Fed sort of supports the activity, which when announced the price went from $50 to now. Don't think they are buying the #$%$ out of it to cause collapses in the future. What does the future really hold for Bitcoin? Maybe promising, but it is not gold.
Here is something that just came out:
"Dec. 4, 2013, 12:51 PM 1,841 4
At least $7 million worth of bitcoin — or 6,296 coins — were spent on Black Friday, according to data from Bitpay, one of the country's largest payment service providers. )The price of Bitcoin averaged about $1,200 on Nov. 29.)
And what did a huge number of people buy? Gold and silver bullion. (The price of the latter, by the way, nearly matched bitcoin's on Friday).
The top-three online retailers whose payments Bitpay processed on Black Friday were KnCMiner (whose gonzo order volume for its latest mining device we told you about yesterday), Gyft, and Amagi Metals."
We asked Gyft, a gift card site, for any more data about what people bought with Bitcoin, and spokesman Ian Chaffee could only say electronic