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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Would You Prefer A Bitcoin Or A Gold Coin? 4 comments
    Nov 28, 2013 11:13 AM | about stocks: GLD

    We finally crossed the line where 1 Bitcoin costs the same as an ounce of gold.

    (click to enlarge)

    What would you prefer?


    (click to enlarge)

    or this:

    (click to enlarge)

    I'm not sure anymore...

    But be aware. We had Bitcoin (2008), then we had Namecoin (18-Apr-2011), Litecoin (7-Oct-2011) and now we have Peercoin 12-Aug-2012 and Primecoin (7-Jul-2013) and Feathercoin (16-Apr-2013) and Novacoin (9-Feb-2013) and......etc.... If everyone invents new coins, there is only so much money that people can use to buy these coins. At some point we will get a crash in the value of these coins as more and more coins come out of nowhere.

    See a list of all coins here:


    To show you why I think Bitcoin is a bubble I took the cryptocurrencies with the highest market cap in this table.

    You can see that we first had Bitcoin in 2009 and as we progress, more and more competing cryptocurrencies arose.

    It gives us this chart:

    More and more "bitcoins" emerge out of nowhere and that's why I think we will see Bitcoins implode at some point.

    Stocks: GLD
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Comments (4)
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  • don'tbugmeplease
    , contributor
    Comments (183) | Send Message
    I don't get it. Why would the existence of those others harm BitCoin?
    29 Nov 2013, 11:19 AM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » For Bitcoin to go up, people need to sell cash and buy Bitcoins. If they sell cash and buy Litecoins, they will have less cash to buy Bitcoins. If there are thousands or millions other "Litecoins" out there, more and more cash will go to there instead of Bitcoin.
    30 Nov 2013, 12:32 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
    Do you use bitcoins? Do you even have any bitcoins? I rest my case. Thanks for playing, have a nice day.
    29 Nov 2013, 10:06 PM Reply Like
  • SMaturin
    , contributor
    Comments (2268) | Send Message
    Gary North articulates the reality of Bitcoin rather succinctly:


    Bitcoins: The Second Biggest Ponzi Scheme in History
    30 Nov 2013, 11:51 PM Reply Like
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