Bitcoin has rapidly gained popularity in the past few years. The worth of one Bitcoin has been gradually increasing as more and more people are shifting towards the e-currency. The steady rise has come to a point that today the value of one Bitcoin has surpassed the per-ounce spot price of gold.
According to XAU/USD spot exchange rate provided by Bloomberg markets, the spot price for one ounce of gold is $1,237.73. On the other hand, the price of one Bitcoin is $1,238.11 which is actually greater than the price of gold.
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Bitcoin Reached $1,000 in 2017
At the start of the year 2017, the value of the Bitcoin was already more than $1,000 and now, it has finally crossed the mark of $1,237 (price of one-ounce of gold). There has been a swift change in the market as the rates of Bitcoin touched a new peak in February 2017.
Approval of Bitcoin ETF
The increase in the prices of Bitcoin has attracted investors from all over the world while they wait impatiently for SEC to approve the first ever Bitcoin ETF. The SEC has been given a deadline to make its decision. It only has a week left to approve the ETF as the last date is 11th March 2017.
The last time gold and Bitcoin reached the same value was almost three years ago on the Mt Gox exchange. At that time, it was the only exchange that had a price to reach the parity.
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A lot of people don’t know what a Bitcoin actually is. It is a currency which has been created digitally. This currency is held electronically with no such things as notes or papers or anything remotely physical. In some cases, it is also called a crypto-currency. It is very different from other currencies as it is not created physically.
Bitcoin was developed by a software engineer Satoshi Nakamoto. He introduced Bitcoin as an electronic payment system. No one controls Bitcoin; it is a digital currency that has no centralized authority. You cannot buy things through Bitcoin as it is actually a way of trade. Bitcoin has been created with the idea of developing a currency that no one could control on their own. In this way, people will have an authority-free currency with the lowest transaction fees.
Source: Coin Desk
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