The bitcoin vs gold debate has raged on in investment circles since bitcoin has entered mainstream discussion among increasingly interested investors. Gold has been used as a form of currency and trade for thousands of years, and certainly has a track record for reliability and preservation of wealth. However, as the newcomer onto the scene, bitcoin may be the kind of financial and technological breakthrough to to challenge gold as the monetary kingpin.
Early on in its life cycle, seasoned investors began questioning the legitimacy of bitcoin value and debating how such a commodity could hold intrinsic value. What differentiates bitcoin from a mere collectible and what makes it similar to precious metal assets such as gold or silver? Among many circles, especially gold bugs and older-generation investors, bitcoin was not considered a valid investment up until very recently.
Which factors of bitcoin instill this validity of investment?
Watch Video Bitcoin owners today still must convert their coins back to traditional currency in order to buy certain items, pay bills and purchase things at their favorite shops. However, the tide is shifting and the conversion necessity is falling. As the value of bitcoins increase there will be more value to spread around, and more people willing to spend bitcoins.