Ask this question around and the most likely answer you are going to get is the gold. After all, its physically present, is valuable everywhere, can’t be stolen by someone using a computer and is more valuable than one bitcoin. Actually, the last statement is not true anymore. The value of one bitcoin has now exceeded that of one ounce of gold.
Yup. For the first time ever in the history of bitcoins, their value has exceeded that of an ounce of gold. This happened because of the fact that bitcoin prices chose to surge at about the same time that gold prices chose to take a dive. While bitcoin value rose by almost 3 percent, that of gold dropped by around 1.3.
To put things in perspective, while gold is trading roughly in the same neighborhood as it was last year, the value of the virtual currency has surged up by almost 185 percent. Meanwhile, this actually put things at a very interesting turn. Bitcoin was touted as something that would be able to replace gold as the first choice for investment. However, the extreme volatility it displayed, jumping between a couple of hundred dollars to over a thousand — haven’t really made it a favorite with the investors.
Things seem to be changing now though. After its last nosedive (which happened when hundreds of thousands of of the virtual assets were stolen from an exchange) it has managed to sustain its value and keep from diving too low. Indeed, as I mentioned earlier, the value of bitcoin has risen by over 185 percent since last year.
The fact that its value has crossed that of gold suggests that it is also drawing investments. And that is again very interesting. Why? Well, the securities exchange commission is on the verge of deciding whether or not they want a bitcoin exchange in the US. So you see, the timing of this event along with the all-time high bitcoin reached last week, is very interesting.
Meanwhile, if someone asks you to chose between an ounce of gold and a bitcoin — make sure you use Google before picking one.