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What Is Bitcoin?

Bitcoin functions as not only a currency, but also a payment network for that currency. Bitcoin is  an intriguing technical feat.

It is both a digital currency unit and a global payment network through which one can send and receive the Bitcoin currency units.

Bitcoin Runs Laps Around Precious Metals, Nearly 40% Gains Since Feb. 1

The digital gold standard known as Bitcoin has shown impressive strength in the mist of the recent drop in all precious metals.

Gold lost 40 dollars in a 24 hour period to close for the weekend at $1610.30. This loss reflects a 2.4% drop. Silver had a more significant drop falling from $31.00 to close at $29.80 dollars an ounce.

This reflects a 3.4% drop in the common man’s gold. These drops have occurred despite, as Harvey Organ reports, the gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn.

What You Need To Know About Bitcoin And Precious Metals

For those long time purchasers of precious metals, understanding what is fundamentally money and the difference between it and currency,  is easy.

Precious metals have been money throughout history.

Their luster is desirable to all peoples throughout the world regardless of culture, education, or any other demographic that one can find.

Precious metals are of course “precious” meaning that they are limited in their availability and the enormous time and resources required  in order for one to be able to attain these metals.

Bitcoin too is money because it contains all the aspects of money that precious metals do.