Bitcoin: digital gold or fool’s gold?

March 9, 2018 at 10:59


Over the past few months, I’ve heard one question more than any other: “What do you think about Bitcoin?” Through 2017, Bitcoin, the world’s first cryptocurrency, rose by almost 1,200%, prompting excitement and bafflement. My answer: I’m enthusiastic about the Blockchain technology that makes Bitcoin possible. In fact, Vanguard is using such technology. As for Bitcoin the currency? I see a decent probability that its price will go to zero. Are cryptocurrencies currencies? Bitcoin’s creators introduced the cryptocurrency in the wake of the GFC. The goal was to bypass governments and banks when two individuals want to transact. No country, company, or institution c...

"Bitcoin Mimics the Property of Gold"

March 9, 2018 at 10:55


n 2017, the largest cryptocurrency Bitcoins price rose over 1,300 per cent, and it has been swinging wildly this year, worrying regulatory agencies globally. Nicolas Cary, Co-founder and President of Blockchain, the largest blockchain firm globally, provides the technology that supports storing and transactions of Bitcoins. He spoke to BT's Manu Kaushik over the phone, in the middle of a busy day at his London office. Question: How has your journey been so far? In 2017, the largest cryptocurrency Bitcoins price rose over 1,300 per cent, and it has been swinging wildly this year, worrying regulatory agencies globally. Nicolas Cary, Co-founder and President of Blockch...

Austria Eyes Bitcoin Rules Based on Gold

March 9, 2018 at 10:46


Austria’s finance ministry is looking at the trading rules for gold and derivatives as inspiration for drawing up regulations on cryptocurrencies for the nation and for the European Union. The goal is to prevent Bitcoin and similar virtual currencies from facilitating money laundering -- a crime that’s no stranger to the precious metals business -- and to bring trading platforms under the kind of oversight that already exists for financial instruments, Finance Minister Hartwig Loeger said in a statement on Friday. Loeger is meeting his Portugese counterpart Mario Centeno in Lisbon today and will raise the issue, he said. “Cryptocurrencies are significantly gaining i...

'The risk takers have gone': Junior gold companies irked by bitcoin

March 9, 2018 at 10:31


On Tuesday morning, Chris Haldane, of Marathon Gold Corp., was looking at the price of gold and looking at his stock price: Gold had climbed US$17 per ounce, but the company stock was barely moving. “It just seems like the junior gold space has gone into a pause mode,” said Haldane, who handles investor relations for Marathon, and had just issued a press release touting positive drill results for its prospective gold camp in Newfoundland. The likely culprit: cannabis, bitcoin and the many cryptocurrencies out there. Although no one could point to any formal studies, there was wide consensus on the trade show floor at the Prospectors and Developers’ Association Confe...

Winklevoss twins say bitcoin will "disrupt" gold

March 9, 2018 at 10:23


The Winklevoss twins have argued bitcoin is a better asset than gold and is still "underappreciated". Speaking at an event in New York, Tyler Winklevoss said bitcoin is equal to or better than gold "across the board", in terms of scarcity, portability, fungibility and durability. "We believe bitcoin disrupts gold," he said. "We think it's a better gold if you look at the properties of money and what makes gold gold." Winklevoss, who is famed alongside his twin brother Cameron for losing out to Mark Zuckerberg for the control of Facebook, said bitcoin has the potential to appreciate by 30 to 40 times to be on par with the gold market, which is worth around $7 tril...

Hold Gold For Safety, Buy Bitcoin As Speculation

March 9, 2018 at 10:20


Bitcoin can never replace or even compete with gold, as each asset serves a completely different purpose, founder of Goldmoney Josh Crumb said speaking on the sidelines of the Prospectors and Developers Association of Canada (PDAC). “There are different reasons to invest in gold or bitcoin. If you are looking for a stable store of value and you are worried that the central bank is screwing up, then you buy gold as safety. If you are looking for something to go up 10x, you buy bitcoin. But, you do the latter knowing that it can also go down 10x,” Crumb said on Tuesday. Despite some fundamental differences between the two investments, there is still a clear connection...

Bitcoin To Replace The Dollar And Gold?

March 9, 2018 at 10:18


The recent market excitement around Bitcoin has slightly detracted from one of the factors that attracted many people to cryptocurrencies, namely their decentralised and egalitarian setup. Unlike the US dollar and other government-backed currencies, no one person or organisation has control over Bitcoin. This makes the currency very appealing to libertarians and others who believe strongly in small government and personal freedoms. Recently, speculation has been building that Bitcoin may one day replace the US dollar or other reserve assets such as gold. In this article, we’ll examine each of these ideas in turn and discuss how likely they are to happen in the near future...