BitcoinLots of gum-flappiing about bitcoin being the new gold lately. Then you start hearing about other "coins" - bitcoin cash, ethereum, and even companies issuing their own coin instead of shares. It is getting to be pretty crazy, but to equate cryptocurrencies with gold is, well, inconceivable (just saw Princess Bride). I hope I am right, because otherwise I am missing out big time on a major new trend.
However it seems that anyone with a million dollars can set up a bunch of computers and start minting. try that with gold. Anyone can mint anywhere in the word they want. try that with gold. Coin can be minted indoors with few employees in comfort. try that with gold. New types of coin can be made and sold at will. try that etc etc. It goes on and on. I just don't see it. I mean, I can see the appeal - no tax, no government control, total freedom of movement, lightning transfers around the world, easy convertibility. Huge questions remain -
what if governments make it a crime to own?
what if a virus or worm or new harmful tech thingy gets attached to it?
how can it not get diluted in value by more being made (ok, that's a joke - think about dollars)
what if governments decide if you can't beat it, join it, and flood the world with more so that we all have to use it?
what if a way is found to tax it, or regulate it?
anyway you get the point - it can't be the same as gold for very long. If it has actual value people will find a way to extract that value, which you can't do with gold. 'nuf said...