Investors in East Asia are turning to Bitcoin instead of gold as a way to move wealth out of depreciating currencies and hedge against political uncertainty according to Seeking Alpha. This article reminded me of my post from 2013 titled 15 Reasons why Bitcoins are Better than Gold.

Seeking Alpha goes on to say: The governments of China and India have restricted their citizen’s investment in gold to such a degree that people are abandoning it and turning to cryptocurrency as the primary alternative investment.

As a reminder, some of the reasons I pointed out in the past which relate to international markets causing Bitcoin prices to increase are as follows:

2) Negotiating Customs
4) Bitcoins are less bulky than gold coins
6) Bitcoins are gold 2.0
9) No central processor or storage facility is needed with Bitcoins
15) Bitcoins are a virtual commodity

See one year chart of Bitcoins followed by gold – notice Bitcoin value growing quickly as opposed to gold which is stagnating.

I think it’s a bit sensational to say gold will crash because of Bitcoin but then again tech has disrupted retail, photography, manufacturing (3-D printing), airplane travel and just about everything else… Why not Gold?