What’s The Difference Between Gold & Bitcoin?

By | October 29, 2013

gold-vs-bitcoinsOnly a decade or so ago, the perception of the dollar as viewed by many was strong and as good as gold. However, very few realize that every fiat currency has gone bankrupt in history approx. 4,000 in total.

Today, the majority of the masses don’t trust the dollar. Our friends in Europe don’t and certainly not our foes in China and Russia. The fear of hyper inflation and quantitative easing or even confiscation play a major role in the distrust people have in the dollar.

For thousands of years gold has been accepted as a means of tender for goods and services. Its a known fact that gold has always been a store of value. It has all the characteristics needed as a currency and will continue to be the default currency of the future. Throughout history countries and their leaders have sacrificed their morals and ethics for greed in the form of fiat currencies. Governments dislike gold because they can’t produce it out of thin air and create prosperity and the euphoria that accompanies it.

Welcome to the 21st Century of fiat currency known as Bitcoin. It is touted as the answer to the paper currency crises but lets look at Bitcoin a little closer. First and foremost it has no physical properties and is backed by nothing even though the name itself implies its a coin. Images I’ve seen project itself as a gold coin. Which it is not. It only exists hypothetically and is a computer generated value. We know governments can print more money and are doing so at record pace but who controls the Bitcoin? Do the programmers or the elite have the ability to add a few zero’s? How is it regulated? What processes ensure checks and balances not to mention flat out theft. Remember there is nothing tangible here. You cant hide some bitcoins under your bed or in your mattress it doesn’t really exist.

Just like fiat currency which banks control manipulate and occasionally confiscate. The Bitcoin is the same thing only online that is computer generated making it even easier to manipulate. I strongly recommend if you choose to take part in this form of currency you limit your exposure. I would not recommend any significant amounts of funds be stored or exchanged on this platform.

Gold bullion from a private mint, not government issued gold coins or paper gold (stock market) continues to be the most prudent vehicle to protect your net worth. You must hedge against inflation and have a true generational wealth product and plan. He who has gold always has money. The physical possession of gold should be viewed as an insurable not an investment.

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