This morning, one unit of bitcoin became more valuable than an ounce of gold. Bitcoin’s all-time high rose to $1,239.90, while gold was worth $1,238.67. Known as digital gold, this is the first time in bitcoin’s eight-year history that it has exceeded the value of gold.
While some investors are still hesitant about the digital currency, others have grown more comfortable and willing to buy it when conventional markets, like stocks, are performing poorly. Bitcoin’s recent success isn’t terribly surprising when you consider its relative growth. While gold has risen about eight percent this year, bitcoin has risen over 25 percent in the same amount of time. And this comes after bitcoin increased by 125 percent in 2016, which was likely a product cash crises in underdeveloped and debt-burdened markets like in India, Venezuela, and Greece. It appears that bitcoin has benefitted from international economic turmoil more than gold.
Gold enthusiasts, however, remain skeptical, comparing bitcoin’s successes to other trend fads like the Beanie Baby craze that eventually died out in the 90s. While we can’t predict where bitcoin may go in the future, we do know that the bitcoin market is smaller and more volatile than the gold market. Yet, the Commodity Futures Trading Commission has classified bitcoin as a commodity, much like gold.
What do you think? Is bitcoin a viable safe haven option, or do you prefer gold and other precious metal bullion?
Interested in investing in gold? Take a look at the Perth 1 gram Gold Bar.
Eric says
The thing with gold is, if you but bullion and store it yourself, you have something. Where Bitcoin is nothing.
ProvidentMetals.com says
I’m sure many people enjoy being able to see their investment as a tangible asset.
proud american says
i like gold &silver both tangible assets
ProvidentMetals.com says
You share the opinion of many investors!
Robert Grandon says
If I can’t feel it or touch it.. Then I don’t want it.. Sorry Bitcoin
ProvidentMetals.com says
You’re among the ranks of many investors who enjoy investing in tangible assets.
Danny Morano says
Not everyone knows what Bitcoins are. I bought a cigar box of various U.S., Foreign and 12 Bitcoins at a yard sale for $175.00. After researching I found I hit the jackpot. All the coins were Silver, Gold or a combination of both. The real gem was an encapsulated “Titan” which I found could be worth up to $5,000.00 alone. Further research showed all the coins were still “Live” but, that’s where it ends. I have no idea how much their conversation rate is in U.S.D. or how to find out. Any ideas? Thank you.
Regards, DrWho7
ProvidentMetals.com says
That’s great that you found a veritable treasure box! Unfortunately, we don’t deal in bitcoin so we do not have any resources on conversion rates to offer up. But best of luck in all your investing endeavors!
PS there are a few Whovians at Provident as well 🙂
Shamus says
I have both precious metals & BTC.
Each one has its pro’s and con’s.
With the digital age in full swing and the versatility of BTC. It is very attractive due to its security features and portability. Hackers are the big threat today for all of us and BTC can curb that threat with encompassing/securing sensitive digital files via its blockchain.
I love gold, and well silver as well – having a valuable physical commodity is rewarding.
In all, diversify, both have there ups and downs and both are not going anywhere. All due to the demand for each for during certain times and needs, which are gaining daily for BTC.
ProvidentMetals.com says
It sounds like you have a well-thought and prudent approach to investing! Thanks for sharing your opinions.
Henry says
I realize Bitcoin has taken hold but the bottom line is the coin is really no different than any fiat currency. It is a Brass disk with gold plating. Why would anyone buy a bitcoin over a pure gold coin. This sounds like fantasy land with no long legs to stand on long term…..just another gimmick that one day may well bite the believers in the back side…..remember it only has value if others believe it does…..
ProvidentMetals.com says
Thanks for sharing your opinions. I think many investors of precious metals have similar thoughts on the matter, though the new currency is favored by others.
Robert says
When the power grid is decimated in the US as we are being lead to believe is eminant, one will loose all contact with internet access, then what?
ProvidentMetals.com says
Well, if you invest in gold and other precious metals as opposed to bitcoin, then you don’t have to worry about losing your investment if we ever do lose contact with the internet at some point in the future.
Ken says
If the power grid were to fail and people were smart and kept the golf in the bank, how would anyone get there gold or of safe deposit boxes. Also given this scenario, how much would gold be worth? If the internet is gone then the exchanges that set the price of gold, the publications that display the price and finder a buyer that would pay that price would all be impossible. Besides what would they be paid in, I assume if we can’t keep the internet going then the US dollar would have issues or completely fail. So you could walk around with some heavy gold and hope to barter or have bitcoins that only exist in an internet that has failed? Without the internet how many workers and retired workers would lose there source of income? I get all my monthly checks via the internet, which would be gone. Printed checks are tied to the internet and so on and so on.
I personally think BitCoins are a cry by people who see pallets of money being printed with no plan on repaying the loan. But Bit Coin has similar issues, what is it backed by financially? Are there US dollars per gold or food somewhere that guarantees them? At least the dollar has a large country with laws on taxation to back it, what does Not Coin have?
ProvidentMetals.com says
All valid points. We’ve grown very dependent on the internet and digital assets, and hopefully we don’t need to worry about that security net disappearing.
Eric says
So in our history, gold was traded for goods and services. So if there was some sort of disater that wipe out the electric financial system. I could see gold being used as a Curentcy again. People believe in golds value.
J.H. says
lol . . .
However, the advent and subsequent survival and thriving of Bitcoin is a legit story, that needs to be expounded upon. The age of the crypocurrency is here.
I liked and laughed at the Beanie Baby comparison, but I disagree. I believe that Bitcoin will be with us for some time and it will very likely gain value, but for my part I’m out – for now. I’m sticking with metals.
ProvidentMetals.com says
At least we know that metals are a safe bet, but it’ll definitely be interesting to see what happens with bitcoin in the future. Thanks for sharing your opinions!