A landmark event: bitcoin just beat gold!

A landmark event: bitcoin just beat gold!

According to the CoinDesk bitcoin price index on Thursday, the United States market trading, bitcoin dollar price over the price of gold for the first time in eight years, once reached $1251.32.

Digital currency research company CryptoCompare CEO and founder of CharlesHayter and many other bitcoin observers have pointed out that there is a positive correlation between currency and gold, more and more investors are willing to accept this kind of digital currency, when the stock and other traditional market pressure, investors are more willing to buy coins. According to the report, the financial market continued uncertainty and the new president of the United States and the government will continue to support the gold market anxiety. Also, analysts believe that bitcoin market rebound may be the latest and Chinese independent, but with President Trump’s policies on.

Moreover, the market is speculation first bitcoin Exchange Traded Fund (ETF) will be established to obtained the approval of the U.S. financial regulatory agencies. Three tracking bitcoin value ETF has the U.S. Securities and Exchange Commission (SEC) submitted the application for establishment of SEC in March 11th, and will decide whether to approve the Cameron and the TylerWinklevoss brothers submitted 4 years ago to apply, if approved, it will be the first by the United States Agency for entities and supervision of the bitcoin ETF, can improve bitcoin is usually more cautious on institutional investors attractive.

However, capital chain block (BlockchainCapital) researcher SpencerBogart ETF believes that the possibility of bitcoin approved low, but if approved, the percentage increase will be greater than the first gold ETF iSharesSPDRGoldTrust gold has approved the increase.

Although the Commodity Futures Trading Commission (CFTC) has been classified as bitcoin commodities, as gold, but there is at least one important difference between the two: the capital market is about $20 billion bitcoin market is far less than the gold market, and the volatility is far greater than the gold market.

Bitcoin has become more mainstream, because many companies have now accepted it as a form of payment, stock strategist MattMaley CNBC in the “transaction” program that support bitcoin instead of gold, but many gold enthusiasts still bitcoin suspicious.

This year, gold rose nearly 8%, in contrast, bitcoin soared more than 25%. The raw materials and the futures trader AndrewHecht SeekingAlpha issued a document that the dollar is strong or the Fed rate hike is expected to heat up drag gold, gold prices in the battle in retreat. Bitcoin is not affected by the strong dollar, continue to rise, due to China, such as Russia and Venezuela have extremely strict capital controls, exchange rate fluctuations, before people buy gold for wealth preservation, convenient capital flight. Bitcoin appears to make capital escape easier, as long as there is a mobile phone or computer, can carry out overseas, may therefore demand.

Since bitcoin and gold is a hedge, bitcoin can replace gold concern. Some experts believe that bitcoin risk is too high, to the next generation, gold still will be the main place for wealth preservation. If the gold and gold coins as a brand, market position is much higher than that of bitcoin. Gold wealth preservation function clear, bitcoin value is difficult to measure. On one hand the number of coins are scarce, the world’s only 21 million pieces, if instead of gold, the price will be high to amazing, holders may be reluctant to trade; on the other hand, bitcoin value may also be overnight evaporation, if the rise of new digital currency, or the authorities decided to destroy bitcoin, can make the value of bitcoins disappeared exhausted.

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