Ethereum vs Tangibleum: Why Cryptocurrencies Can Never Replace Physical Gold
The comments above & below is an edited and abridged synopsis of an article by Shannara Johnson
On June 11, 2017, Bitcoin reached its all-time high of $3,025.47, followed by a 27.7% plunge only four days later. By July 12, Bitcoin had lost a total of $12 billion from its value within a month.
Raoul Pal, founder of the monthly investment publication Global Macro Investor and Real Vision television, isn’t surprised by the volatility. He says that Bitcoin and other cryptocurrencies are in a bubble and will blow up someday, because anything that moves exponentially always does.
Pal sold his position when the currency hit the $2,000 range, for a tenfold return on his investment. Now he’s watching from the sidelines.
Here are the main problems with Bitcoin as Pal sees them, along with a comparison to gold: Bitcoin is not a reliable store of value; Bitcoin is not the only fish in the sea anymore; and Bitcoin’s blockchain technology will soon be like the Internet—everyone has it.