Rejecting Fiat - The Electronic Vs. Physical Edition

| About: Winklevoss Bitcoin (COIN)
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It's been virtually impossible to avoid discussions about Bitcoin in recent days as the electronic currency soars from $150 to over $900 in recent weeks. The parabolic surge is breathtaking, to say the least:

But what I find more interesting about Bitcoin is that its huge rise is occurring at the same time that gold continues to move lower. Gold is now down 23%+ this year, as Bitcoin has jumped from $14 to $900 (you do the math on that!).

Of course, Bitcoin and gold are both considered alternative forms of money to fiat money. But there's a big difference between gold and Bitcoins, in my opinion. Gold is a very poor medium of exchange because of its physical properties. This makes it a rather poor form of money, especially in a fast paced electronic economic system. But Bitcoin is different. Bitcoin has the potential to be every bit as good a medium of exchange as any other electronic form of money. It just needs to start getting accepted as a form of final payment by more and more merchants.

So the interesting thing about this rally in Bitcoin is not that Bitcoin is rallying, but that it's occurring at a time when gold is collapsing. I can't help but wonder if this is a sign of the anti-fiat money crowd voting with their wallets on the potential that gold really isn't a viable form of future money, while something like Bitcoin might just be….