Bitcoin: The ‘Perfect Gold’

NEW YORK (InsideBitcoins) – Whenever someone tries to explain bitcoin to a friend, relative, or colleague, an analogy with gold always seems to find its way into the conversation. Some have even said that a combination of bitcoin and gold could create the perfect currency, but it seems that OKCoin CEO Star Xu may disagree with that partnership.
In his mind, bitcoin is possibly a ‘perfect gold’, which means there may be a point in the future where gold-backed and fiat currencies are no longer needed. Xu was able to expand on some his thoughts on bitcoin and gold during his presentation at the recent North American Bitcoin Conference in Miami.
What are the valuable properties of gold?
The last slide of Star Xu’s presentation included a summary of why gold was valued as money in the past. Before governments around the world took complete control over the creation and regulation of currency, gold was used as money because it was simply the best option available on the market. Gold and silver won out over other commodities, such as diamonds and oil, because it has specific properties that make it more useful as a money.

This post was published at Inside Bitcoins on Jan 21, 2015.