UNITED STATES March 03 2017 11:52 PM
NEW YORK (Scrap Register): Commerzbank does not consider bitcoins to be a “suitable alternative” to gold despite recent strength in the cryptocurrency.
“Following the latest steep rise in bitcoin prices, the cryptocurrency is currently priced at $1,270, making it more ‘expensive’ than a troy ounce of gold for the first time,” Commerzbank added.
Even though neither bitcoins nor gold have any central administrative body like a central bank that could control the currency, and even though bitcoin prices are determined by market forces, there are many reasons why we do not see bitcoins as a suitable alternative to gold.
These include the small size of the market and their low level of distribution, the lack of general understanding of the concept, the short history of bitcoins, their extreme price volatility and the high proportion of speculators, the bank noted.