Recently there’s been a whole lot of talk about a new digital currency called the Bitcoin that’s growing quite quickly, its gaining plenty of media focus and its value has improved dramatically.
The present financial turmoil in Europe and around the world has also made people invest in options to fiat money like the Bitcoin. For most people it’s odd that someone can take seriously a currency that’s not backed by a Government or fundamental institution, but that’s the precise benefit of this coin.
The Bitcoin is a really interesting concept that’s gaining acceptance by many businesses online such as PayPal, WordPress, Reddit, Microtronix and lots of more. In reality ATM machines are already on the way to be utilized.
Some of the critics of Bitcoins state they are easing buying drugs on the world wide web, the programmers say that the digital currency is only a tool and you can use it for good or bad.
Fiat money has the disadvantage that fundamental institutions can print as much as they need, thus it’s constantly losing purchasing power. The same principle applies in the event you have cash in the bank. Instead what you should do is put your money on an asset that retains its value or increase it.
At this time the Bitcoin seems a great alternative since its increasing its value, however this can change in the future. Another choice is to spend your cash on something productive like a business or property that increases in value or invest it in gold.
though the digital currency is a fantastic way to diversify your portfolio, not rely on paper money or bank deposits, you want to try to find a means to store value that’s protected against financial hedge and the best alternative is Gold, since its the ultimate cash. Gold has been a store of value for centuries and will always be, since its valuable, its restricted in quantity, its simple exchangeable and its a store of value.