Bitcoin’s parabolic growth has mimicked Gold’s exponential rise in the 1970’s when Nixon removed the US dollar from the Gold Standard on August 15th, 1971.
US currency became Fiat Money once taken off the Gold Standard, drawing its value from supply and demand rather than its relationship with equal amounts of gold. With the removal of the Gold Standard, the value of gold experienced an exponential rise, growing from around $35 to nearly $850 (USD) in under a decade - an increase 2330%.
Over the past six years, Bitcoin has seen a similar rise, growing from around $10 to nearly $7500 - an increase of 14,900%.
While the gold value rise was triggered by a removal from its US dollar relationship, Bitcoin has been inflated by something new - a decentralised data network. Bitcoins data-currency, or digital currency, has experienced an exponential rise due to its decentralised nature, anyone can buy it from anywhere in the world, the fees are low, and the transfers are fast and transparent through the Blockchain.
The exponential rise of gold in the 70's led to a correction of greater than 50%. However, as confidence in traditional currency lowers, Bitcoin is experiencing the hysteria that once surrounded 70's gold. We urge caution moving forward as Bitcoin goes exponential.
Moreover, there is another substantial aspect to review behind the scenes of cryptocurrency, a revolutionary new platform - Blockchain. Blockchain Technology is the future, as it governs how digital currencies will be used, traded and tracked, including its numerous other uses. Stay tuned for more insights on Blockchain Technology.