Gold is one of the most interesting economic barometers around because its price is a good measure of the fearRead more
There is little or no new growth potential for gold because it is nothing but a store of value. Cryptocurrency is a new class of technology with almost unlimited potential.
Gold bugs might say cryptocurrency investors are fools and think their metal is underpriced. They would take the opportunity to buy gold figuring the price will shoot up when the altcoin bubble bursts.
Cryptocurrency investors will point to their technology’s growth and dismiss the gold bugs as a pack of ignorant Luddites. Strangely enough, the gold bugs might have a point, the Market Capitalization (Market Cap) of their shiny plaything exceeds that of cryptocurrency.
The total value of all the gold in the wolrd was estimated at $8.2 trillion by How Much. The value of all cryptocurrencies reached $370 billion or an all-time high in December 2017, CNBC reported. This was impressive but less than the capitalizations of some popular stocks.
That was less far less than the Market Cap of Apple (NASDAQ: AAPL) stock which was $907.84 billion on 19 2018 and under the Market Capitalization of Berkshire Hathaway (NYSE: BRK.A) which was $526.73 billion on 20 January 2018.
Cryptocurrency has a long way to go before it catches up with gold or even the value of the big stocks. From a straight value perspective gold seems like a better investment because it still has far more value.Read more