Fall of Gold Blamed on Rise of Bitcoin

Fall of Gold Blamed on Rise of Bitcoin

Written on 12/13/2017
Mike Mikkola

The price of gold has tumbled 15% since September. This has been during the meteoric rise in the price of Bitcoin.

In March 2017, Bitcoin was still trading under $1,000. Its amazing rise has brought Bitcoin’s price today as high as $17,000 USD. This appreciation of value has two main underlying reasons.

First, CBOE and CME have both introduced Bitcoin futures Not only does this lend credibility to the cryptocurrency, it also allows institutions who heretofore could not purchase, an avenue to purchase as a security.

Second, as pointed out by a number of people, including Steve Wozniak, Bitcoin is seen as a safe haven for wealth. In some respects, it has, even more, promise because it has a finite number of tokens available. There will be no more added to the supply. Gold continues to be mined.

Bitcoin has pulled the entire cryptocurrency market along with it. As recently as April the market for ALL cryptocurrencies was around $30 billion. As of today (12/12) the market has surpassed $494 BILLION. Bitcoin’s market cap is around $292 BILLION. It dominates the marketplace.