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.
Ethereum, another popular cryptocurrency, increased its market share from 5% at the beginning of the year to a breathtaking 30% in June, only to plummet 65% from its record high by mid July.
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.