03-09-2017, 10:14 AM
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It's 42
Industry Role:
Join Date: Jun 2010
Location: Global
Posts: 18,083
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Bitcoin Is NOT The New Gold
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In arguing for Bitcoin?s allure, enthusiasts tend to fall back on one singular point; like real Gold, there is but a finite number of Bitcoin that could be mined (21 million to be exact). But that is hardly the case. Bitcoin?s allure is not a factor of its rarity, but rather its ecosystem. That ecosystem enables financial transactions between two parties, both anonymously, and at very low costs. The fact is that that ecosystem could be easily replicated with an alternative to Bitcoin. So, while the number of Bitcoins we can mine is limited, the amount of alternative ecosystems that could emerge for Bitcoin wannabes is not. In fact, even today, there are already 12 different alternatives to Bitcoin, including Litecoin, Peercoin and Primecoin.
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Bitcoin and other digital coins are a real threat to the payment processing and banking industry if they ever catch on. Currencies are a medium of exchange and not a long term storage of wealth. If you held the US dollar with no interest since 1960 that same dollar is worth less than $0.22
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