Bitcoin Worth More Than Gold Now

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– Posted on March 2, 2017Posted in: Business, Finance, Technology & Internet

The cost of a single Bitcoin rose above the cost of an ounce of gold for the first time today.

Bitcoin rose to $1,271.09 per coin on trading while the standard benchmark, gold, fell to $1,231.5 per ounce, based on March futures.

Bitcoin

While the two types of assets — one real, and one virtual — are not really comparable, the declining gold price and increasing bitcoin price is still quite significant. Demand for gold, which investors particularly flock to in times of uncertainty or volatility, has fallen since the 2016 U.S. presidential election on a stronger dollar, indications of future interest rate hikes, and due to conjectures about possible business-friendly policies that may emerge from the new Trump administration. The related potential regulatory changes would increase chances of higher-yielding stocks.

The more volatile digital currency Bitcoin, on the other hand, has recovered with from an abrupt plunge in early January. That was partly due to expectations that one of the multiple proposals for a Bitcoin exchange-traded-fund might gain approval from the SEC, according to The Wall Street Journal.

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About John Willis

John Willis is a career reporter, with a Journalism degree from Boston University, where he also interned at The Boston Phoenix. After he graduated he was promoted up to be a full reporter for The Phoenix newspaper's online division for two years and later worked as a columnist in the Sunday Weekly magazine of the Pittsburgh Tribune-Review. John has written for the eTimes Herald News since 2017.