Bitcoin is more expensive than gold

Bitcoin is more expensive than gold

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Two years ago, Bitcoin’s value dropped so badly that the digital currency was canceled as a failed experiment.

Not anymore. Bitcoin has reloaded, and for the first time (2 March), a Bitcoin is worth more than a gold ounce troy.

The milestone is inherently arbitrary: if gold is traded in pounds or kilograms, Bitcoin would still have much to do. But the emergence of a new currency with the exact value as that of millennium gold is significantly significant.

The value of a bitcoin increased as $ 1,242 at the beginning of Friday, just 2 days after going over $ 1000 for the 1st time. The value of Bitcoin fall and reached to $ 1155. At the same time, gold prices were around $ 1,250 per ounce and were approximately 25% for the year.

The value of bitcoin has risen this year and that create hope that the experiment with digital money will be a legitimate global currency. In January 1 bitcoin was of value around $.

Bitcoin, acting without stopping on Mt  Gox Exchange and other online markets were very unstable. This month increased to what was then a discount of $ 900 full time to fall to $ 500 after 28 hours.

The demand for bitcoin was particularly strong in China, where the main search engine, Baidu (BIDU), now accepts currency for some services.

In the United States, lawmakers have looked at potential provisions for bitcoin, which is an optional currency in certain online drug markets and other types of illicit drugs.

Last month, federal authorities stopped the Silk Road drug smuggling route, although a few weeks later a new version of the market appeared.

Bitcoin received support from Federal Reserve officials, including President Ben Bernanke, who said the currency could “hold a long-term promise” under the international payment system.

Some supporters argue that regime regulation would be positive for bitcoin as it could lead to a broader adoption of the currency. Others say bitcoin is decentralized by the project and the government should leave it alone.

Investors say bitcoin is highly speculative and should not exceed 1% of the portfolio. Many compared the bitcoin with a lottery ticket, saying it could be worth much or nothing.

Bitcoin prices rose in April after an unprecedented rescue of the banking system in Cyprus, which has led to concerns about the stability of European banks and the euro. In May, prices fell in what many saw as explosive bubbles. For most of the summer of the summer before the start of the October meeting, Bitcoin was selling for $ 100.

Meanwhile, more and more companies are accepting bitcoins, from underground sandwich shops to Richard Branson’s commercial travel program, Virgin Galactic.

The Bitcoin program was created anonymously and launched on the Internet in 2010. Unlike traditional paper currencies, bitcoin is not managed by central authority and exists only in cyberspace.

Bitcoins are “extracted” by super computers that fill complex mathematical problems. The total number of bitcoins is limited to 21 million and approximately 12 million are currently outstanding, according to

Bitcoin fans, crypto-currencies, have long been called digital gold. Now it sounds like an insult: continuing star growth and adding approximately30% value in just one week, one bitcoin worth over $ 2,600, more than double the amount of gold ounces. As The Economist went to push all the bitcoins in circulation were worth over $ 4.3 billion. The sum of $ 1,000 invested in bitcoin in 2010 is now nearly $ 36 million. Other crypto-currencies also go up: this week worth $ 87 billion. But if the history of gold is some kind of guide, what goes down, goes down, and then goes.

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