Wednesday, December 4, 2013

Selling Bitcoins and Buying Gold

This is interesting.

Both gold and Bitcoins are in demand by people seeking a sound currency that cannot be debased by governments. But it would seem that despite the growing popularity of Bitcoin, ultimately people prefer to own the currency with the 5,000 year history vs the new up and comer.

From Business Insider:
Gold and silver bullion was apparently among the biggest selling items on Bitcoin Black Friday.
According to Bitpay, one of the largest Bitcoin payment processors, the top-three online retailers on November 29 were KnCMiner (whose gonzo order volume for its latest mining device we told you about yesterday), Gyft, and Amagi Metals.
Amagi Metals chief Stephen McAskill told BI in a separate interview that his site processed $900,000 worth of bitcoin between Thanksgiving and Sunday. The biggest selling items were silver and gold coins and bars, he said. 
"To me it makes sense," he said. "A lot of bitcoin enthusiasts are interested in sound money, money that doesn't lose value."
But there are still enough users who think bitcoin will someday retain the value of gold, he said.
We asked Gyft, a gift card site, for any more data about what people bought with Bitcoin, and spokesman Ian Chaffee could only say electronics and food.
For the month of November, Bitpay processed 55,288 bitcoin transactions. They did not provide us with a total dollar figure for the month. Here's a chart:
bitpay chart 
 This is why I believe the ultimate currency is gold in the form of Goldbulliondebitcard .

Once physical gold can be spent in tiny increments of milligrams and paid with the convenience of the global debit card network, we will have an independent currency able to make transactions anywhere in the world. A truly international currency.

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