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.