Are crypo-currencies like Bitcoin the new gold … or potential de-facto US currency? OR is Bitcoin and related crypto-currencies (e.g., Ethereum) in an appalling bubble? That is, few actual investors driving the price over 11,000. Time will tell.
But what we do know is that Bitcoin has just breached the $11,000 barrier while consumer purchasing power of the US Dollar keeps declining.
Ethereum is showing a similar meteoric rise.
UPDATE: Like any bubble, Bitcoin and Ethereum Classic have lost a little air after 9am highs.
Of course, the creation of The Federal Reserve System in 1913 under President Woodrow Wilson helped to constantly devalue the US Dollar ever since.
With the Franklin Roosevelt’s Executive Order of 1933 preventing the hoarding of gold (and the subsequent Richard Nixon unilateral cancellation of the direct international convertibility of the United States dollar to gold) …
we haven’t had to listen to fiery speeches like William Jennings Bryan on July 9, 1896, at the Democratic National Convention in Chicago. The issue was whether to endorse the free coinage of silver at a ratio of silver to gold of 16 to 1.
The way it was in the United States.
Hey, now we have FIAT currency (not backed by any precious commodity like gold or silver).