Bitcoin is online transaction system in which customers give and receive payments without the involvement of banks or other financial companies. It is a virtual form of currency known as the crypto currency or Bitcoin. The Bitcoin is a universal currency that could be transacted at any authorized website and is totally free from the obligations of the present currency exchange rate
After one year of its introduction, the Bit coin’s value raised from fractions of a penny to $0.05 USD, The next year, it reached to $0.30, and then in 2011,Bitcoin rose to over $6 USD, It was a celebrating a peak 2011, with a peak price of $800! .The unrestricted BTC market is flourishing day by day and see how the Bitcoin trading affecting the gold prices in USA.
Bitcoin is the virtual trade system and it is defeating the value of gold globally. This is certainly because of the fact that Bitcoin delivers ease of use and accessibility. These features are responsible for the high acceptance in daily transactions rendered globally.
According to a reputed estimation, value of Bitcoin has reached $1,242 in November 2013, almost equal to the Gold prices in USA, trading around $1,250 an ounce at that time.
The Bitcoin portability option facilities the investors in . This thing lacks in gold trading. Gold needs exclusive storage and transportation which is a chaos in small transactions and it sometime affect the gold prices in USA. On the other hand, Bitcoin is simply stored, carried and it is an asset free from complex banking system and legal liabilities.
The divisibility helps Bitcoin to lead the trade as though dividing the gold ounces is easy to estimate on paper, but in practical it is a bit complex to divide the gold functionally. On the other hand, Bitcoins could be divided easily.
4. Easy payment mode
The cryptocurrency trading has several advantages over gold investment due to easy transportation and stress free payment modes.Bitcoin is far better for commerce and payments. This might be another reason for bitcoin afefcting the gold prices in USA
Each transaction in Bitcoin integrates with the network of the most powerful cohesive computing power. Each unit and transaction is protected by 256 bits of military grade encryption through robust computing when you receive a Bitcoin means you are receiving the genuine transaction .On the other hand gold could be claimed as fake or having impurities.
Though it might seems that the Bitcoin trading has overpowered gold prices in USA, in fact, gold has consistently exhibited its resurgence in 2016. The sudden drop in gold’s market value does not mean that it had lost its status as a safe investment choice. Gold will recover from its decline with a constant thriving pattern, as long as investors have faith in gold profits, they will continue to invest in such precious metal.