'Digital Gold': Cryptocurrencies Skyrocket as Investors Swap Dollars for Bitcoins

Cryptocurrencies are gaining in value because many see them as a brand new form of digital investment that have advantages over the USD as well as gold, Economic Historian Dr. Garrick Hileman told revealed to BUy BitCoins In Nigeria Blog.

The price of Bitcoin was soaring to new highs during trading the other day, amid an upsurge in demand. In line with the CoinDesk Bitcoin Price Index (BPI), it broke through the $1,500 barrier  for the first time on Thursday; trading on Saturday has reached $1,550 so far.



Since reaching $1,000 at the turn of the entire year, the cryptocurrency has surged recently and added over 20 percent of value during April alone.

The steep rise in price has led some analysts to wonder whether Bitcoin, that was invented in 2009 and broke the $100 barrier in 2013, is heading for another wave of price growth as new money enters the market.

Cryptocurrencies expert Dr. Garrick Hileman, who's an Economic Historian at Cambridge University and the LSE, along with founder of the macroeconomic news website Macro Digest, told Buy BitCoinsInNieria Blog that most cryptocurrencies, not only bitcoin, are gaining in popularity.

 

Bitcoin's steep price increase has caught the headlines but other blockchain platforms have now been gaining in price at a much higher rate. For instance, the blockchain Ethereum, that provides native support for automated "smart contracts," has worth $7 billion.

While cryptocurrencies are increasingly being used for more and more tasks, such as cross-border payments or online transactions, financial speculation continues to be the foundation of most demand.


"A lot of people would concur that cryptocurrency today continues to be considered primarily a speculative instrument, a stored value. It is a bet on people needing cryptocurrency to do things like power the'internet of things' economy and machine to machine transactions."

 The theory of bitcoin and other cryptocurrencies getting used as a form of digital gold, an alternative solution way of storing money outside of traditional banks and currencies, can also be gaining in acceptance.
Lately, bitcoin and other virtual currencies received official recognition in Japan last month.

 

However, investors in virtual currency should remember that since there's no national or international regulation of bitcoin, buyers may be the victims of theft or fraud.Additionally, the cost is extremely volatile and could skyrocket – or zero.
"They're incredibly volatile instruments, there's no government or central bank standing behind them to help try to regulate the exchange rate."

 

"Yet, cryptocurrencies like bitcoin provide a number of advantages over gold. They're easier to store, in some ways they're certainly easier to send to another person around the planet, they could be even far more convenient to acquire. So, if cryptocurrency is now a brand new kind of digital gold, a brand new commodity, then truly the sky could function as the limit on the price."

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