BitCoin Surpasses Gold

Bitcoin surpasses goldFor the first time, bitcoin has transcended the value of gold, closing on Thursday at $1,268, whilst an ounce of gold stood at $1,233.

As notable as it seems, the higher stock value could have many plausible explanations. According to Adrian Ash, the head of research at Bullion Vault, what’s more important, is that bitcoin is making new strides. And the record high also indicates consumer’s appetite for alternative assets. Ash also adds that crypto currency is possibly finding new buyers.

China’s increasing demand has been linked to the price movement, next to falling gold prices with a 2 percent decrease. Its steep price increase of 7 percent this week is widely due to speculation surrounding the U.S. Securities and Exchange Commissions decision on whether or not bitcoin-based exchange trading will be approved.

No country claims this digital currency. It was anonymously created under the name of Satoshi Nakamoto, but last May, the technology was publicly claimed. The claim was made by Australian computer scientist Craig Wright, and he is now working together with Canada’s Bodog founder, Calvin Ayre, to file an international patent.

Lack of government control and anonymity can be credited for the popularity of this cryptocurrency. However, there are also suspicions that its popularity won’t last. Chinese officials have even cracked down on Bitcoin trading, in order to stop illegal flow of money out of the country. Despite not being owned by any government, bitcoin is the best-known and most used digital currency, and continues a steady rise in its value.

A process called mining is required before bitcoin transactions can be processed. As bitcoin is pseudonymous, the process is complicated and resembles building a puzzle. Bitcoins can also be obtained through exchange, for instance for other currencies, services and goods. One must possess a bitcoin address in order to receive bitcoin and use it at bitcoin casinos.