Jan. 9, 2017 | By Holly Dragoo
For the first time since its creation in 2008, a cryptocurrency has surpassed gold in value. The cryptocurrency market has seen an unprecedented climb during the past 30 days, in spite of expectations suggesting it would level out before hitting this milestone. Historically seen as esoteric money for “geeks and criminals,” common criticisms of Bitcoin (and similar cryptocurrency forms) are that it’s not based on any real commodity or universal standard. As such, the surge in value, together with a handful of new currencies (such as Hayek or Aurum) that are backed by gold, could do much to move the adoption rate of cryptocurrency into the mainstream.
IISP Analyst Holly Dragoo: "The climb in Bitcoin value over the holiday stretch is certainly interesting to see, but will likely take a tumble before long. The volatility in past years is not likely to go away overnight, especially with new exchanges popping up all the time, and the omnipresent threat of hackers and insider saboteurs. That said, more and more vendors are accepting bitcoin payments for everyday items, and the more widespread the usage, the more stable the currency becomes. Who knows? You might be paying your taxes in Bitcoin before the year is out!"
For further reading
- Cryptocoins News: https://www.cryptocoinsnews.com/bitcoin-makes-history-reaches-gold-parity/
- CBS News: http://www.cbsnews.com/news/bitcoin-passes-1000-amid-growing-acceptance-of-cyber-currency/
- Gold Vault: https://goldvault.co/en/what-is-aurum-gold-coin