By Terry Savage on August 24, 2014 | Wild Card

How do you feel about using bitcoin as an alternative to gold or commodities?

Terry Says: I’ve been reading and collecting information about bitcoin for couple of years now.  In the future, and in perhaps a different world order, there might be a very real use for a global currency, not controlled by governments.  One should never rule out that kind of change.

However, at the present time it is just a wildly speculative bet to “own” bitcoin, given its limited use.  It’s more of a PR stunt than a global currency.  And it will certainly be attacked at some point by governments that recognize it is a way around their regulations and tax systems.

So, at present, I don’t see it as an alternative to gold — which for centuries has been a “store of value” because it cannot be “created” at will — by government printing presses.  Gold is heavy, and not so portable.  But if you’re thinking of gold as the ultimate “hidden asset” it is currently still a better bet that bitcoin because gold is indestructible (and we’ve learned that the online bitcoin reservoirs can be “erased”).

If you’re looking at a “trading vehicle” (as opposed to a store of value), gold is a lot easier and a far more regulated marketplace than the bitcoin market, as well as a far more liquid global market, less subject to manipulation than bitcoin at this point.

Bottom line:  I’m not ruling out the future of Bitcoin.  I just don’t see it as a place to advise my readers to put even their most speculative money — yet.



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