Can we still compare gold to Bitcoin?

Bitcoin and gold share many commonalities. But how far does the similarity go?

If we take a close look at Bitcoin – electronic money – at the moment, it’s because its price,

denominated in dollars, is breaking new records , like gold in its time (in September 2011 remember ). New Eldorado for some, bubble about to explode for others, what interests us, at loretlargent, it is the alternative and the future prospects offered by gold and Bitcoin, two free currencies who are not really. Is Bitcoin a currency that will remain underground?

Success story of a “geek” currency

Currency created by a Japanese (Satoshi Nakamoto) in 2009, basically to facilitate transactions on the web, a bit like the Linden dollar in the Second Life virtual universe, Bitcoin quickly exceeded the framework of some Internet users keen on IT and attracts a wider audience.

The reasons for success: complete freedom (it is not backed by any banking system, its operation depends on a simple computer protocol), confidentiality, guaranteed anonymity … To exchange bitcoins, all you need is software. Transactions can be carried out from any connected digital medium (computer, smartphone, tablet).

A growing success to such an extent that in the summer of 2013, consecration, Germany officially recognized it as a “private currency” (which allows the country to tax this currency in the same way as the others).

The virtual currency even reached new records in November of $ 321 on November 7 (which was already a record in itself) and $ 1,073 on November 30, approaching or even exceeding the price of gold before fixing. It is the first time that Bitcoin has crossed the $ 1,000 mark since its creation!

And anecdotes that make you dream: ” With 17 euros of bitcoins in 2009, he buys an apartment “. Because this is where the virtual meets the real: Bitcoin allows you to buy goods or services on the web or is exchanged directly for cash.

Inevitably, this success cringes the teeth of the banking authorities who have the small change that is climbing in their sights: as much cash that escapes both their control and the possibility of making a little money on it in the process.

Deregulated currency, without control or any banking supervision, left in the hands of only users (crime of lese majesty in the world of banking institutions), speculative, promoting illicit transactions, money laundering, taxed as “mafia currency … Bitcoin is accused of all evils. Several banking authorities warn against Bitcoin, a “highly speculative” currency and which therefore risks losing nothing after the imminent explosion of the bubble in formation. From the Banque de France to the European banking authority passing (on foot) through China , the warnings are raining. What is it really ?

Banks are suffering from gold and Bitcoin

This is the major common point between these two currencies which are not or no longer officially recognized by all the states: the disenchantment of banks.

And the price of Bitcoin, like that of gold, climbs in times of market and political tension: “So the recent political crisis in the United States around the raising of the debt ceiling and the shutdown has given back a new lease of life for bitcoin, shortly after the closure of the drug distributor website, SilkRoad, where transactions were carried out in bitcoins, ”said this article in Économie Matin .

The comparison does not stop there. The phenomenon of “rush” in times of crisis has been well understood by the IT community in this article for which Bitcoin is modeled after precious metals and which explains:

To understand the concept of a peer-to-peer currency, you just have to think of gold. Unlike fiat currencies, there is a finite amount of it on our planet. With euros and dollars, it is possible to operate the printing press at will, at the risk of creating inflation. Philosopher’s stone being only a chimera, it is obviously impossible to do the same for gold. Most cryptocurrencies take up this principle of a limited, predetermined amount of resources.

The parallel with precious metals can even be taken further, since these virtual currencies must be extracted from their mathematical gangue, mined using calculation algorithms which act as a super pick. ”

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