Should You Buy Bitcoin now it’s worth more than Gold?

Should You Buy Bitcoin now it’s worth more than Gold?


What is Bitcoin?

Bitcoin is a digital currency that exists purely online. Its origins trace back to 2009, from a white paper published online by a mysterious person operating under the pseudonym ‘Satoshi Nakamoto’. This digital currency is a complex beast, but at its core it is anonymous, borderless and efficient. It’s the new ‘alternative’ financial system that’s a threat to government and the current global banking system.

What’s the deal with the price of Bitcoin?

Since 2009 bitcoin has been on an incredibly rollercoaster ride. At it’s very beginning you could ‘mine’ bitcoin when it was worth just one-tenth of a cent (in US dollars). Then in 2013 it went on an incredible run, peaking at US$1,150. That’s a return of around 115,000,000%!

It subsequently crashed to be worth around US$220 at the end of 2015. But it’s been on a steady trajectory higher in the last year and a half. And now in the first week of March 2017, one single bitcoin has been consistently trading higher than the spot price of an ounce of physical gold. One bitcoin is now worth US$1,278. On ounce of gold is worth US$1,229.

What now for the price of Bitcoin?

Expect to see further volatility. There’s a landmark decision coming soon about whether or not the Winklevoss Twins (of Facebook infamy) are legally able to operate the world’s first bitcoin ETF.

It will have an impact on the short-term price of bitcoin. But longer term, expect bigger and better things. I’ve repeatedly said that the long-term purchasing power of bitcoin could go as high as US$50,000 or even US$100,000.

It’s a world full of turmoil, potential trade wars, currency wars and maybe even physical war. But with bitcoin you can control your (digital) money and keep it safe. You can store it away from the grubby hands of government. And, longer term, as it becomes a widely accepted unit of exchange, the purchasing power of one bitcoin could skyrocket.

But I’ve always said that you should treat it for what it is, a unit of exchange in the digital world. Don’t aim to convert it or trade it back into fiat currency. Get yourself some bitcoin, and keep it within the bitcoin system. While some are calling it ‘digital gold’, the truth is it’s more than that — it’s the ultimate antiestablishment financial instrument. And if you’re prepared to ride the rollercoaster, then you absolutely need to get some bitcoin.

To find out more about bitcoin, subscribe to Money Morning where you can get updated coverage of bitcoin and other cryptocurrencies as they disrupt the global financial system.

Sam Volkering,
Money Morning

Sam Volkering
Sam is Editor for Money Morning and it's small-cap and technology analyst. He spends his time hunting down the most exciting stocks on the planets, whether they’re potential-packed volatile small-caps or tech firms transforming our future through cutting-edge technologies. You can find more of Sam’s work over at Australian Small-Cap Investigator, where he shares the best small-cap stocks he finds on the ASX, or at Revolutionary Tech Investor where he reveals the latest breakthrough tech investment he’s discovered. If you’d like to more about Sam’s financial world view and investing philosophy then join him on Google+. It's where he shares investment insight, commentary and ideas that he can't always fit into his regular Money Morning essays.
Sam Volkering is Editor for Money Morning and its small-cap and technology analyst. He’s not interested in boring blue-chip stocks. He’s after Australia’s rising stars — companies whose shares trade for cents on the dollar — and are often shunned by those in the financial services industry. His mission is to make you big money, from small stocks.
If you’d like to learn about the specific companies Sam is recommending you buy for turbo-charged stock returns, take a 30-day trial of his small-cap investment advisory Australian Small-Cap Investigator here. But that’s not where Sam’s talents end. From discovering the Apple 2e and Macintosh in the mid-80s, to the rise and fall of the Mini Disc in the 90s…to building internet apps in the 00s...Sam is an amazing talent at finding new, cutting edge technologies and translating that research into how the future will look — and where the opportunities lie.It’s his job to trawl the world to find, analyse, research and — in the right situation — recommend investments in the world’s most innovative and technologically advanced companies.He recommends the best ones he finds in his breakthrough technology investment service Revolutionary Tech Investor.This revolutionary investment advisory is dedicated to finding the best ways to profit from technological developments across the globe. If the best action is in Australia, Sam will find it. If it’s in Silicon Valley, Frankfurt or Tokyo, Sam will find it there too.To find out more about how Revolutionary Tech Investor can help you profit from breaking developments in the tech world click here to take a 30-day no-obligation trial today. Official websites and financial e-letters Sam writes for: (You can find a list of recent articles written by Sam at the bottom of this page.)

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