One bitcoin is now worth more than one ounce of gold

One bitcoin is now worth more than one ounce of gold

For the first time ever, the price of one bitcoin has surpassed the price of one ounce of gold.

While today’s swap can be attributed to a good day for bitcoin (up ~3%) and a bad day for gold (down ~1.3%), the big picture is that bitcoin has more than doubled in the last year (up ~185% from a year ago) while gold is essentially trading exactly at the price it was a year ago.

bitcoin

Even though bitcoin and gold are both thought of as alternative assets, they don’t usually trade in correlation.

Still, it’s notable that bitcoin has (at least temporarily) surpassed the price of gold. Gold is quite literally the “gold standard” of alternative assets, often used by investors to hedge against potential losses in more traditional assets like real estate and the stock market.

When it was first launched, many said bitcoin would eventually replace gold as the preferred alternative asset and store of value for investors. This hasn’t happened yet for many reasons, including the fact that it’s still complicated to invest in bitcoin, as well as its volatile price history. So today’s price swap could be a sign that more mainstream investors are allocating at least some portion of their alternative investment portfolio to bitcoin.

And it may become much easier to invest in bitcoin very soon, as the SEC is about to announce whether they will approve the Winklevoss bitcoin ETF, which would be the first bitcoin ETF in a U.S market, and make it much easier for both Wall Street and regular investors to buy the digital currency.

Last week bitcoin hit an all-time high, partially due to speculation regarding the ETF, and partially because of other factors which you can read about here.

One bitcoin is now worth more than one ounce of gold

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The Evolution of Fintech

The Evolution of Fintech

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1865 The pantelegraph, invented by Giovanni Caselli, starts operation between Paris and Lyon, France. It is most commonly used to verify signatures in banking transactions.

1866 The telegraph is introduced in 1838, followed in 1866 by the laying of the first successful trans-Atlantic cable, which provides the infrastructure for financial globalization.

Late 1800s Consumers and merchants exchange goods using credit for the first time, in the form of charge plates and credit coins.

1918 The Fedwire Funds Service is established by the Federal Reserve Banks to transfer funds and connect all 12 Reserve Banks by telegraph using a Morse code system.

1919 The economist John Maynard Keynes writes about the link between finance and technology in the book “The Economic Consequences of the Peace.”

1950 Modern-day credit cards are introduced starting with Diners Club, founded by Frank X. McNamara.

1960 Quotron Systems introduces the Quotron, the first electronic system to provide selected stock market quotations to brokers through desktop terminals.

1966 The global telex network is put in place, providing the communications necessary for the next stage of financial technology development.

1967 Barclays bank introduces the first automated teller machine (A.T.M.), it calls a “robot cashier,” allowing customers to get cash around the clock.

1970 The Clearing House Interbank Payments System, or Chips, is established to transmit and settle payment orders in American dollars for some of the largest and most active banks in the world.

1971 The Nasdaq — National Association of Securities Dealers Automated Quotations — is established in the United States. This signals the end of fixed securities commissions.

1973 The Society for Worldwide Interbank Financial Telecommunications, or Swift, is established to solve the problem of communicating about cross-border payments.

1982 The first online brokerage, E-Trade, is founded. It executes the first electronic trade by an individual investor.

1983 Online banking is introduced in Britain by the Nottingham Building Society. (It was introduced in the United States in 1980 but abandoned in 1983).

1984 The world’s first online shopper, Jane Snowball, uses a Gateshead SIS/Tesco system to buy food from Tesco.

1984 The newly formed company Intuit establishes Quicken, marketed directly to consumers primarily as a check-writing program.

1987 The “Black Monday” stock market crash has consequences on markets around the world, showing how the markets are interlinked by technology.

1993 Financial technology is coined as a term, coinciding with the creation of the Financial Services Technology Consortium, established by Citicorp in 1993.

1998 A majority of banks in the United States set up the first transactional websites for Internet banking.

2009 Version 0.1 of the cryptocurrency Bitcoin is released and includes a generation system intended to create 21 million bitcoins through 2040.

2011 Google establishes Google Wallet, which allows consumers to use smartphones equipped with a near-field communication chip to make “tap payments.”

2015 This year, for the first time, more people use mobile banking than those who avail themselves of a physical branch.

2015 The Chinese e-commerce giant Alibaba, led by Jack Ma, announces “smile to pay,” which enables consumers to authenticate mobile payments by scanning their face with a smartphone.

The Evolution of Fintech

The Race to Replace Bitcoin

An epic battle between two bitcoin 2.0 contenders grips the crypto world

There’s an epic battle for the future of money, and the outcome is murky. It might have several winners. It might have no winners. But one thing is crystal clear: The most exciting battle in this long war is taking place in San Francisco, and the town isn’t big enough for both Ripple Labs and Stellar, two of the contenders hoping to replace not just Bitcoin but the almighty dollar.

The Race to Replace Bitcoin

The First U.S. Bitcoin Exchange Is Now Open

Coinbase’s new exchange has regulatory approval in 24 states, including California and New York.

Coinbase, a startup backed by $106 million in investor funding, has opened the first bitcoin exchange inside U.S. borders, the Wall Street Journal reports. The new venture is to the first to let users buy and sell bitcoin with a company based in the United States.

The First U.S. Bitcoin Exchange Is Now Open

The growing role of bitcoin: What’s next for cryptocurrencies?

Since their introduction in 2009, cryptocurrencies have attracted the attention of a variety of stakeholders in the financial community, from private investors to financial institutions and authorities. In the new landscape of cryptocurrencies, bitcoin has the highest market capitalization.

While it’s hard to estimate how quickly bitcoins will be fully adopted, it is clear this trend cannot be ignored and must be monitored. The industry is growing: There are more players involved, more cryptocurrencies available and the degree of sophistication has increased. Engineers are now working on new technologies for reducing the costs associated with the creation (“mining”) of new bitcoins.

The industry itself has to decide whether to step forward and drive the change of embracing bitcoin into the payment system – the role of big players will be crucial in determining whether to speed up the rulemaking process, believing that bitcoins will have a positive impact on the market overall.

While opponents and defenders debate the cryptocurrency market, the availability of clear rules and a common regulatory framework could be the real game changer and determine whether this is only a speculative bubble or the first step in a big change.

The growing role of bitcoin: What’s next for cryptocurrencies?.

A New Digital Currency Whose Value Is Based on Your Reputation

Bitcoin turned money into something completely virtual. Using a worldwide network of machines and the power of pure mathematics, it put currency in the hands of computer programmers, free from the rules and regulations of big government and big banks.

But there is something even more radical coming up – a new digital currency project tentatively dubbed Document Coin.

A New Digital Currency Whose Value Is Based on Your Reputation | Enterprise | WIRED.