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Home 2017-12-14T22:34:23+00:00

Here Are The Experts’ Thoughts About Bitcoins

Times have changed. The technology is taking a central space in defining human’s life. If you were living in the days before the new millennium, owning gold used to be a precious and the only path to millionaires club. People in your village would lay a red carpet for to show respect. 

But technology is bringing the gold glory to an end through the introduction of virtual gold – Bitcoins.

While you were a billionaire owning gold in the 18th century, the technology is launching Bitcoin millionaires.  Owning a Bitcoin miner in the 21st century shoots you to a better position that the gold ore owners of the past decades.

But how accurate is this information? Is it just a meme to attract you into an investment doomed to fail? Also, you may be viewing Bitcoin as a modified pyramid scheme. Hence you are skeptical about investing in them.

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So, what do gold experts have to say about Bitcoins? Here are the experts’ thoughts on the future of cryptocurrency:

a.    You cannot compare gold and cryptocurrency

Even though people refer Bitcoins and altcoins as the new gold, experts say this is vague. In their view, gold and digital coins are incomparable. In particular, the two differ from their mining technology to their form. Gold applies a physical mining process while the latter is virtually based.

Also, the two do not serve the same purpose even if they are forms of transacting in the business arena. Hence, Bitcoin and its sisters in the digital currencies are not a replacement for gold.

Furthermore, the experts’ state there is a significant difference between the two forms of payment. As per Goldman Sachs, gold has been in use for more than 5,000 years. Its durability and portability are some of the characteristics that give it a high value in the money ranking. For this expert, cryptocurrencies have less than a decade in existence.

And for this reason, they cannot fit in the same category with gold. Hence, they are compliments and not competitors or replacements to gold.

b.    Security of wealth storage matters

While it’s true that cryptocurrencies are gaining ground fast and also rising in value even beyond the gold worth, they are not a secure form of wealth storage. Even though you can trade with the Bitcoins, their security is wanting. First, there are no custodians to this type of wealth. 

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If issues arise on your Bitcoin wallets or PC carrying it, you are likely to lose your fortune. Also, storing them in a cloud-based wallet does not promise you any security as fraudsters already have software and algorithms they can use to hack and steal your coins.

In comparison, gold is gold. Storing your wealth in gold form guarantees you the security of your resources. If you cannot secure it, you have an option of taking it to a custodian with extensive experiences such as banks and other financial institutions. As such, gold is the principal secure form of wealth security a shoe that Bitcoins cannot fit.

c.    Bitcoins are a viable investment, but you need to be conscious

If you want to make money, investing in digital coins is a feasible idea. Most experts recommend Bitcoins and other altcoins as good investments. There are now several Bitcoin millionaires if not billionaires.  Also, many former gold investors are trying their feet on the new virtual gold.

However, experts are cautioning businessmen like you on how to go about the new wooing digital goldmine.  In words of David Morgan, the investor behind Morgan report, you should remove your capital once it is recovered from the Bitcoin investment and trade with the revenue generated. Others argue that Bitcoins may be a bubble in its process to bursting and thus you need to be careful when trading with it.

 And that’s it about experts’ views on Bitcoin and gold comparison.