Bitcoin’s value has overtaken gold in a historic moment for the world’s number one cryptocurrency
Bitcoin has come a long way since its inception in 2009. Last week, for the first time in history, the value of the world’s most well-known and controversial cryptocurrency surpassed the value of gold. On March 3rd, one bitcoin became worth more than an ounce of gold, a remarkable achievement for bitcoin, even if temporary in nature. Bitcoin’s value is on the rise.
The main reasons for bitcoin’s value surpassing gold last week are two-fold. Gold prices have been on the slide for a while now and dipped further after the President of the Federal Reserve Bank of New York stated that US interest rates could be increased in the near future. At the same time as gold has been on the decline, demand for bitcoin has surged since the beginning of 2017. The drop in gold in combination with increased bitcoin activity has pushed the value of the cryptocurrency above gold for the first time.
As bitcoin’s value moves past gold, those in the crypto community will no doubt feel a deep sense of satisfaction. Bitcoin has overcome a number of problems since its inception but has been slowly recovering from a value of around $200 per bitcoin in mid-2015 up until last week’s value of $1238.
Now that bitcoin’s value has overtaken gold the question of whether it can hold its position will be tested. One event that could see the value of bitcoin surge even higher or conversely drop back down below the value of gold is an imminent SEC decision on a bitcoin-based exchange traded fund that is expected at any time.
If the Securities and Exchange Commission approve the first US bitcoin exchange-traded fund this coming week, it will deliver an unprecedented level of interest and credibility to bitcoin. An exchange-traded fund would make bitcoin investing simple for small traders, and no doubt give the currency another boost. Alternatively, if the Securities and Exchange Commission fails to approve the first US bitcoin exchange-traded fund, the cryptocurrency could face a significant drop in value.