The cost of a bitcoin has finally surpassed the price of an ounce of gold.
Many people had been expecting this moment to arrive but no one knew exactly when it would happen.
As of 12:30 PM Eastern Time on 3/2/2017:
The price of a single bitcoin is $1,267.00 USD (Source: Coindesk)
The price of an ounce of gold is $1,239.20 USD (Source: Apmex)
Is Bitcoin the New Digital Gold?
If you are familiar with Bitcoin, it has the inherent quality of being able to store value, much like precious metals and other types of investments do. (See what is Bitcoin?)
Because of this, many investors are currently exploring adding Bitcoin to their portfolios as a way of diversifying their investments. One of the key investment opportunities that is being actively tracked is the Exchange Traded Fund (ETF) by the Winklevoss twins, co-founders of Facebook.
This new ETF is waiting on approval from the Securities Exchange Commission (SEC) and if approved, would most likely mean a massive rush of new investment into Bitcoin. This flood of new capital would most likely drive huge further growth in the price of Bitcoin.
Is the dramatic increase in Bitcoin price so far due to the upcoming Bitcoin ETF?
Investors have been waiting on the decision from the SEC on whether the ETF is approved or not. This decision is expected to take place on March 11th, 2017.
Because of this, many of the people tracking the price of Bitcoin are speculating that the current price is in great part already factoring in that the Winklevoss ETF will be approved.
However, it’s impossible to know if this current price is artificially inflated or if this is just a natural progression in the value of Bitcoin.
Is it too late to get in on the growth?
Although it’s impossible to determine where the price of Bitcoin will go, some leading experts have speculated a price of $5,000 to $11,000 USD per bitcoin by the year 2020.
At first glance, this seems like a very aggressive price for Bitcoin to reach. However, when it comes to Bitcoin. The first value of a Bitcoin was pegged at $.0025 USD on May 22nd, 2010 when a man named Laszlo Hanyecz bought 2 pizzas (a $25 value) for 10,000 Bitcoin.
The point is, when it comes to Bitcoin, the issue of price and how much a bitcoin can be worth is subject to what the market is willing to pay for it.
From the looks of it, it’s worth more than its weight in gold.
Do you currently invest or trade in Bitcoin?
If you currently trade or invest in Bitcoin, I want to hear from you.
Let me know in the comments and tell me what you think about the fact that Bitcoin has finally surpassed gold in price.
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