Bitcoin Online Casino Currency More Valuable than Gold

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The digital age is here. None would debate that. Today, there’s even more evidence to support the fact as Bitcoin, the popular digital online casino currency, has proved it’s worth its weight in gold. On Thursday, the digital currency’s value made history as it surpassed the value of an ounce of gold.

By Friday, financial media outlets were shouting the news from the virtual rooftops. When trading closed Thursday, BBC News reported that Bitcoin had closed out at USD $1,268, while an ounce of gold finished the day at USD $1,233.

Many are questioning the positive nature of the news, however. Some analyst believe the rising value of the popular online casino currency is attributed to an influx of demand in China. Authorities in that region have previously issued warnings that Bitcoin is frequently used to funnel money out of the country.

On the bright side – for Bitcoin investors – the crypto-currency is gaining a lot more merit.

Bitcoin has received questionable ratings since it was first established in 2009. Many challenged whether Bitcoin would even last.

In November 2014, its value spiked to more than $979, up over $800 in just two months time, but quickly fell back down to around $420. Its fluctuation has been volatile ever since, dropping into the low $200’s and eventually rising once more to its current value of USD $1,277, as of Monday morning.

Anonymity a Pro for Users, not Authorities

By far the most controversial issue surrounding Bitcoin has been the anonymity it provides users. While that factor has been a boon for many who use it, including many players of Bitcoin online casinos, it’s been a bane for law enforcement agencies world wide, who’ve had a terrible time tracking cases of money laundering.

Earlier this year, authorities in China initiated a swift crackdown against Bitcoin trading. The effect was noticeable by mid January, when Bitcoin’s value suddenly dropped over $150, but the currency has clearly recovered, rising steadily, and to new heights ever, since.

Bitcoin Surge Doesn’t Mean Much

Not everyone thinks Bitcoin’s rise above gold is all that remarkable. Fran Strajnar is the CEO and co-founder of Brave New Coin, an analytical research firm that studies relative financials. According to Strajnar, gold’s phenomenally higher market cap is much more important.

“The gold supply is 180,000 tonnes of ‘above ground’ gold, valued at $7 trillion,” he told CNBC in an email. “The bitcoin market value is $20 billion, so gold vs bitcoin is psychological more than anything.”

Strajnar conceptualized that, “The comparison is perhaps a positive signal that bitcoin is being commoditized. But bitcoin is not a commodity, while gold has been a commodity for thousands of years.”

Adrian Ash, Head of Research for Bullion Vault, agreed that Bitcoin overtaking gold “doesn’t… mean much” in today’s market.

“Price is just a number, and overtaking one ounce of gold doesn’t in itself mean much,” Ash told CNBC. “More important is that bitcoin is making new highs. That signals both a growing appetite for alternative assets and also that crypto currency is finding new, perhaps unwary, buyers.”