A few years ago, the digital currency Bitcoin was in trouble. In fact, it was the laughing stock of the computer repair and tech industry. But some stuck with it. And who laughs now? Bitcoin’s comeback: Worth more than gold.
So, I mean that literally. As of Friday March 3, one Bitcoin is worth $1,251. An ounce of gold is worth $1,234. Bitcoin’s comeback puts this currency at an all-time high. Bitcoin’s worth tripled in just one year. Furthermore, in the last three months, their shares went up 30%. Meanwhile, gold shares are went down almost 4 percent in the last year.
So what’s causing this Bitcoin comeback? Many believe it’s the world’s rocky status right now. Many have little faith in their own national currency. Hence, in other nations, the currency already collapsed. India and Venezuela voted to replace throw their paper currency away. They’re replacing it with coins. Maybe Venezuela’s dire economic depression has a role in that. Then there’s the generation gap. And many people, especially Millennials, like paying for things with Bitcoin. But these coins are scarce. And they’re getting scarcer. There are only 21 million of them. That may sound like a lot, but it’s not.
Not if you’re looking at it from a global viewpoint. I’m sure many of these coins are already claimed by the super wealthy. Then you have others who are not giving them up. If you had a coin worth over $1,250, would you give that up? I wouldn’t either. I hate to say it, but cash isn’t as popular as it used to be. At one Boston area store, I couldn’t even use cash at the check out machine. So people, especially Millennials and Gen Z (anyone born after 1997) yearn for a new way of exchange. Bitcoin seems to be that way of exchange, especially for anyone in IT support. Is Bitcoin’s comeback ?the new way of life? Or is it a one hit wonder?