Posted on 03/02/2017 11:08:41 PM PST by aquila48
Fueled by speculation that a bitcoin ETF could be approved by the Securities and Exchange Commission in the next week or so, the price of bitcoin has risen steadily, finally surpassing the cost of an ounce of gold on Thursday.
As of press time, one Bitcoin was worth $1,273 according to CoinDesk's Bitcoin Price Index, and an ounce of gold was worth $1,244, according to precious metals retailer APMEX.
The market capitalization of all outstanding bitcoin also surpassed $20 billion for the first time in bitcoin's history, according to Coinmarketcap.
The SEC is expected to make a decision on a bitcoin ETF proposed by Tyler and Cameron Winklevoss, the former Olympians who now run the cryptocurrency exchange Gemini and venture fund Winklevoss Capital, by March 11.
U.S. investors currently have limited options for obtaining exposure to bitcoin in their investment portfolios, particularly in tax-advantaged accounts. Recent studies have shown it to be uncorrelated to other asset classes, indicating it could help diversify a portfolio.
"It’s primarily high net worth individuals and family offices that are buying right now," says Spencer Bogart, head of research at Blockchain Capital, a cryptocurrency venture firm. "Their thesis is this is their opportunity to get in on a hot IPO before it goes public" -- if the ETF is approved.
Good for those who held them, but they’re braver than I am.
Screw thatis. ‘Worth’ according to who or what? Can a person physically hold a ‘bitcoin’ in their hand? Yes or no? Case closed.
And now they're only worth $20 billion which is a drop in the bucket of the amount of wealth generated worldwide every year.
How are they supposed to become any sort of replacement for currency, precious metals, etc.?
Twelve hundred and forty four bucks is worth an ounce of gold too. Plus, they feel better in my hand than a bitcoin does, and they're real handy when I'm out shopping or something.
What are you going to get with your Bitcoin after an EMP attack?
your monopoly money in your wallet is just as worthless.
Regular money would turn into Confederate money overnight as well.
“How are they supposed to become any sort of replacement for currency, precious metals, etc.?”
I agree - I think they will be hoarded. Just think that in 2010 (just 7 years ago) when bitcoins first came out you could have bought 1000 of them with one dollar. That one dollar worth of bitcoins would have made you a millionaire today.
With more and more countries eliminating cash, bitcoins become very attractive for people who don’t want the government snooping into all their financial transactions.
The block chain shows every transaction every made with the coin. Not sure how that can be deemed "safe" from government snooping ...
But it’s all encrypted and private... for now.
The government could at some point require businesses to get the identity of people using bitcoins in a transaction.
At that point the value of bitcoins would drop significantly.
should be illegal since most of it is intended to bypass currency rules. worthless.
Three words:
Tulip futures.
the whole idea is that non-businesses
could transfer bitcoin using encrypted
instructions to a server in Paraguay or Tadzhikistan.
bitcoin was useful in the recent
bank problems in Greece and Cyprus
Unfortunately, you have to value or convert your bitcoins into US Dollars before you can usefully spend or invest your profits!
By the way, has anyone figured out who stole 770,000 bitcoins ($980 million!) from the Tokyo and Hong Kong exchanges?
Anonymity is a great business partner - until your money disappears.
Six words:
That is only two words.
Can you physically hold the value of your paycheck in your hand? I'd bet that piece of paper weighs less than its equivalent in gold, just as does the bitcoin.
A bitcoin is worth whatever people will pay for it. Same goes for a piece of gold. Same goes for your paycheck.
Zip. Zero. Nada!
Because Bitcoin depends on the internet, which a successful EMP destroys.
OTOH, gold conducts the EMP and doesn't even get warm.
I woukdnt give you my Oz of gold for your 1 bitcoin - so is it really?
Totally agree. They are an illusion of value.
And illusions often pop into reality as fast as a bubble bursts. Pop... it’s gone!
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