The mysterious and seemingly invisible form of currency that creeped into the market in 2009 called Bitcoin, has just recently passed the $10,000 mark per 1 US dollar.
But what is Bitcoin and can it help you in times of need?
Quick Bitcoin Background
Bitcoin was created under the alias Satoshi Nakamoto; the creator’s identity still remains anonymous to the public. With Bitcoin, trading
and transactions are made completely over the web, where the online Bitcoin wallet lives.
It’s essentially a way to exchange and accumulate money with almost no trace because there are no middle-men involved.
Unlike a bank account, Bitcoin is not backed by the FDIC. This leaves the digital wallet at risk of being hacked. This e-coin is extremely profitable, yet the deregulation makes many hesitant to join.
Is this system the future of money trading? Could it ever turn into the next “gold” coin?
Bitcoin vs. Gold Coin
The Provident Loan Society of New York is the state’s only not-for-profit collateral loan lender. The organization has seen countless gold and rare coins pass through the doors of their five locations. Their appraisers need to always be aware of the market fluctuations in order to give a proper appraisal.
Gold coins are a solid and ancient means of wealth. Unlike the Bitcoin market, gold has maintained a consistent value over time, you can read more about this here.
At the Provident Loan Society, anyone can bring in their gold bullion in exchange for a collateral loan.
What’s So Good About Gold?
Gold is reliable – The market for gold does not fluctuate as much as a country’s currency typically would, nor as much as Bitcoin fluctuates. Other values of gold:
- Gold can be pawned – Unlike Bitcoin, gold can translate into cold hard cash after one trip to a collateral loan lender.
- Gold has intrinsic worth – Gold is recognized all over the world as a precious metal. Similarly, Bitcoin is regarded as a global currency because it is not tied to any country.
The future of Bitcoin is unforeseeable. Just recently – on November 30, 2017 – Bitcoin plunged 20 percent, according to CNBC.
Looking for more advice on this subject? Check out the Provident Loan Society’s blog page for insight and advice on all things finance.