You choose to buy it at a very low price and hopefully get huge profits after more than a year? Well, there are a lot of people are the same that thought with you. However it is very rare, but not really there, unless you think we'll refer to Ponzi or pyramid.
The fact is there's still a chance such investments in the year 2017, which is coin Bitcoin. This is a completely new invention in the digital space, this money is created by the extremely complex algorithms. This is an interesting investment opportunity in the era of digital technology, you can not hold or grasp it, as it exists in the Internet space but you still own it. The number of coins Bitcoin is created will be limited, i.e. when sufficient number exists, will not be able to create more. At this point, the Bitcoin is worth more than $1.000 for each contract. It is almost identical to the price of 3 years ago, but that time is not too much traffic that Bitcoin on the market as it is now. To take a more objective look before deciding to invest in Bitcoin, let along we analyze it with gold.
Gold is vulnerable to more controlled Bitcoin
If you own gold, then definitely you will be controlling. You must have proof of the origin of gold that you are holding. This is nothing strange because that is how the conservation values for gold, avoid being faked or stolen. Bitcoin then returns, no one can control. But this is a drawback of the Bitcoin. Think back to the trading floor Bitcoin Mt. Gox ever hacked millions USD value of Bitcoin the year before. Of Bitcoin hacked it can't find because can't find a trace. In addition to this, the crime is often used to buy and sell drugs, tax evasion or for sponsoring terrorism. No one can track the path of the source of the money by Bitcoin because it was coded by the algorithm.
Gold is very rare, but also more rare Bitcoin
This is an outstanding characteristic help Bitcoin becomes scarce. Because the amount of Bitcoin exists only limited numbers of 21 million. Supply and demand are the most basic concept in economics. When the supply is limited but increasing demand, then prices must go up. Meanwhile the vicious yellow around the circle's cycle supply-demand, when demand increases, the miners had to go find another gold source to tap. When gold reached a price peak, people will sell gold from the jewelry and then of this gold was melted down to become pure gold.
The gold market is quite solid, Bitcoin is just the initial step
As stated on the trading floor Mt. Gox collapsed. Usually when a certain floor collapsed then people will doubt about the investment tools in the floor. Very lucky gold is not experiencing the trouble so. In the fact that the floor would not be comparing the Bitcoin with the gold floor. More gold market quite transparent, prices are very clear. While the price floor at each of the Bitcoin each different spreads. If at a certain floor Bitcoin be dropped the price will create confidence crisis that impacts directly on the value of other decks Bitcoin.
The basic value of gold quite firmly, Bitcoin is just speculation
Gold is an essential material for metallurgical industry or jewelry. In other words, it is worth using the basics of it. The price of gold could not collapse if the needs of the industries related to the gold still exist. The reality has proven gold as a store of valuable property in the period of economic instability. Also, the Bitcoin cannot be used in the way the industry is simple, it is a digital technology. It exists on the Internet and stored on the hard drive or server. Therefore the characteristics of the Bitcoin is important to give top consideration. But it is not real but a lot of people put their faith in it. Remember the lesson of Dutch tulips in the 17th century, only once is more than enough and no one still believes in that.
Easy transfer of gold into cash
Gold has the same value throughout the world. This is an important feature when comparing Bitcoin with gold. This stems from the fact that anyone who also has the demand for gold. However also can not mention Bitcoin, but then only the Bitcoin new investors interested.
Bitcoin became a refuge of safety channel
The stability of the Bitcoin during periods of political instability currently helps digital currencies is that investors view as a safe refuge to protect their property.
Safety is foremost
Important factors leading investors to consider is safety. When known, the investors often seek a safe hiding channels to protect their property.
Recent events show that is like gold, Bitcoin can be shouldering the role ensure the value of the property.
Digital currency as Bitcoin is built from the foundations up and designed for the era of information technology. Bitcoin allows peer transactions together, directly, not through intermediaries, so that it is not bound to the political.
This has boosted the confidence of holding digital currencies recently. Stability through the aforementioned events has enhanced credibility for the kind of money as Bitcoin.
Comparison of gold with Bitcoin seems very silly. Gold is a store of value assets are recognized around the world. However still need to have objective look about the two types of assets. A lot of people can be tempted when investing in Bitcoin. Please carefully grasp the advice that we give. Will still more events occur with this particular investment vehicles. Please clearly define the purpose and your goals to avoid participating in a virtual market. Focus on the analysis of the facts and risks to be able to protect his capital.