Cryptocurrencies have shown a lot of resiliency. Every time doubters proclaim Bitcoin is on the mat for good, it manages to claw its way back up.
Bitcoin went into a freefall after the Chinese government announced plans to ban cryptocurrency trading on all domestic exchanges. But early Monday, the digital currency hit its highest level since early September.
The steady climb of Bitcoin and its meteoric rise this year have led to some speculation that digital currencies may usurp gold. There have been headlines proclaiming cryptocurrencies are killing the yellow metal. But there are some fundamental reasons cryptos will never replace gold.
A recent Forbes article pointed out some important characteristics of gold that will prevent Bitcoin and other cryptocurrencies from ever being able to completely push it out.
Most of the focus now is on Bitcoin. But as Forbes points out, there are somewhere in the neighborhood of 2,100 digital currencies traded in the world right now, with a combined market cap of nearly $150 billion, according to Coinranking.com. We are in the early stages of the crypto revolution. We have no idea which cryptos will ultimately shake out as winners and losers. Betting on any one crypto at this point is risky.
This post was published at Schiffgold on OCTOBER 10, 2017.