One has been a precious metal for centuries, at times a widely-accepted standard for monetary systems, and a modern-day safe haven in economically volatile times. The other was borne of the digital age and is just plain volatile in price movements and unregulated in its unrelenting surge in popularity. With this being said, there are people out there who may be interested in reading about great bitcoin stories around the internet, especially if they are considering being a part of this industry. Just like with anything new, doing some research is always best, so there is at least a basic understanding.
As different as gold and the “cryptocurrency” leader bitcoin are to each other, their price paths nearly met Friday, and many digital headlines made a point to catch the near-collision, even if one has nothing to do with the other — for now.
The price of one bitcoin jumped as high as $1,242 early Friday, just two days after hitting $1,000 for the first time. Prices later fell back down closer to $1,200, according to the Mt. Gox exchange. If you’re looking to better understand cryptocurrencies like Bitcoin, all the basics can be found over on VanillaCrypto.com.
On the regulated commodities futures front, gold prices were trading around $1,250 an ounce, down about 25 percent for the year. Gold futures for February delivery increased 1 percent to settle at $1,250.40 an ounce at 12:42 p.m. on the Comex in New York. On Nov. 25, the price touched $1,226.40, the lowest since July 8.
Meanwhile, the bitcoin phenomenon hurls forward. The price of the digital money, per one U.S. dollar, has surged as investors and CPU “miners” for bitcoin and other “cryptocurrencies” hope the bold digital experiment becomes legitimate, despite calls for regulations to avoid new opportunities for criminals to launder money.
Legitimacy could bring wider acceptance to bitcoin transactions, although its decentralized nature has its appeal to many investors. What is a fair value for this fledgling currency? Investors may see limits to bitcoin’s meteoric rise if this question finds an answer.