Tags: Fortune | Gold | Bitcoin | investments

Fortune: A Gold vs. Bitcoin Smackdown Could Be a Tie

By    |   Wednesday, 19 March 2014 01:10 PM

Gold versus Bitcoin represents an apocalyptic showdown in the quest for a haven from traditional investments, according to Fortune.

Fortune noted Bitcoin is intended to protect investors against some of the same threats as gold, such as war, economic disaster or intrusive government, and concludes Bitcoin has “grown closer to the mainstream.”

As a store of value, Fortune concluded Bitcoin may have an edge because the number of Bitcoins are pre-set at 21 million, while more gold is mined each year so production continues to go up.

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In the area of confiscatory risk, the edge goes to gold. “Sure, there are ways to buy bitcoin so that your identity is not traceable via the bitcoin blockchain, but it's more complicated than buying small amounts of gold with cash at a coin show and not reporting it to the government,” Fortune concluded.

As a hedge against uncontrolled disaster such as World War III, again the edge was seen as going to gold vs. Bitcoin. “After all, bitcoin relies on the Internet to be functional, and if you are somehow severed from the power grid or the online community, your bitcoins will be worthless, even if you store them in physical form.”

However, in terms of ease of use, Fortune suggested Bitcoin has the edge because gold is expensive to store or transport, while Bitcoin with its digital properties is easy.

Regardless of which of the two investment alternatives is the best choice, Bitcoin is undeniably gaining a higher profile of late than it had in its earlier days.

A new profile in Institutional Investor examines how Wall Street is started to get engaged in Bitcoin, which potentially could lend it more legitimacy.

A separate piece in The Wall Street Journal reported that prominent hedge fund Fortress Investment Capital, which has $58 billion in assets, is partnering with another hedge fund, Pantera Capital, and two venture capital firms to create a fund for to invest in Bitcoins.

David S. Cohen, Treasury undersecretary for terrorism and financial intelligence, warned that digital-currency exchanges and other firms that do not register with federal and state authorities could face legal consequences. He said such failure “can be a federal criminal offense,” according to the Journal.

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Gold versus Bitcoin represents an apocalyptic showdown in the quest for a safe haven from traditional investments, according to Fortune.
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2014-10-19
Wednesday, 19 March 2014 01:10 PM
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