Bitcoin is how gold equivalent

Bitcoin is how gold equivalent


Would you rather have a bitcoin, or an ounce of gold? The answer was obvious. Even in the bitcoin hit legendary peak in 2013, the value of bitcoin is not the same as gold.

However, after the 2014 trough, the value of this mysterious stable currency rise, in 2015 and 2016 to pick the best currency crown. But today? The price of bitcoin has gone beyond the psychological importance of having an ounce of gold value.

How is it happen so soon?

Bitcoin: a brief history

The following are some of the most important events in the formation of the bitcoin market:

May 2010: the famous “bitcoin pizza” transaction occurred.

This is one of the earliest application of bitcoin several “real world” transaction. A direct payment of 10000 bitcoins to buy two PapaJohn pizza. To measure the value of bitcoin today, the equivalent of $6 million each. Today, May 22nd is still in the bitcoin community as a “bitcoin pizza day” celebration.

February 2011: bitcoin value reached equal dollar.

October 2012: Bitpay (bitcoin payment system) says more than 1000 stores to accept bitcoin payments.

The earliest to accept bitcoin businesses including, Reddit, OKCupid, ThePirateBay.

March 2013: bail in the Bank of cyprus.

In general, the European debt crisis has become the driving factors of bitcoin. This special event will be potential weakness in legal currency banking system and centralized on the public focus.

October 2013: SilkRoad bankruptcy

With the soaring price of bitcoin at the end of 2013, the Federal Bureau of investigation (FBI) from the online black market and underground network SilkRoad and its owner RossUlbricht seized 26000 bitcoins.

February 2014: Mt.Gox filed for bankruptcy protection

Japan is located in Tokyo the world’s largest bitcoin exchange Mt.Gox– for a certain period of time was controlled 70% bitcoin transactions — by hacking and other problems. It eventually closed down in 2014.

August 2015: during this period, more than 160 thousand merchants to accept bitcoin payments.

December 2016: bitcoin for second consecutive years to become the best performing currency.

The background of the rise of bitcoin

For those from the outset to follow bitcoin bitcoin fans, the rise of bitcoin meteor is a wild chase. Although it has already reached gold and equal value, but the understanding of its background is still important.

First of all, a total of about 16 million 200 thousand bitcoins in circulation, and in the history of a total of 5 billion 600 million ounces of gold were mined. From this perspective, the gold market value than bitcoin is still as high as 300 times.

Secondly, although the bitcoin market has soared since the initial value, the total value of it is still only $20 billion, which is only equivalent to the S & P 500 (S&P500) half of an ordinary company stock value. Bitcoin market and Apple Corp (Apple) or Google (Google), it is more small.

But for those who closely follow the bitcoin market people, these means bitcoin growth potential. It means that bitcoin still has a lot of room to rise, because bitcoin supply is limited, can not be created, so it has no other direction to go, only to rise.

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