The most apparent differences between Bitcoin and Goldcoin is its physique. The Bitcoin is digital and Goldcoin is physical. But not only these, there are much more than that.
Bitcoin is a coded, crowd-sourced currency that found in 2009 and known as the world’s first cryptocurrency. Bitcoin was found by Satoshi Nakamoto. Cryptocurrency means that it is work based on code. As mentioned before, the code is open-source means it can be modified by anyone and freely used for another project.
Goldcoin is pretty straightforward. Gold is precious metal used as the medium of exchange and or currency is known to human throughout most of the history. Many believe that the first goldcoin used by the Turks in 600BC. The material itself is also used in technology and manufacture and also for beauty and art in form of jewellery. In addition to that gold is widely accepted as a long term investment and a hedge against market volatility.
Bitcoin is mined through the digital process. The new bitcoins are generated by the competitive and decentralised process that involving mathematical calculation and algorithm, that called mining. It resembles the actual mining and in that bitcoin miners work to collect bitcoin in exchange. They process transactions and secure the network using specialise hardware.
Goldcoin is produced every year. The raw material, which is gold, mined and go through placer mining, hard rock mining, by-product mining and gold ore processing.
Availability and Price
A total number of bitcoin that can ever mine is 21,000,000, whereas goldcoin Estimated 171,000 metric tonne of the world. In term of price, both are in US dollar and not adjusted for inflation. Bitcoin IS determined by market price over the time whereas Goldcoin determined by per-ounce gold per year. Bitcoin, in the beginning, has a rough start with less than $100 value, but then in 2013 reached $234 had a sligh turn and then peaked to $1242 in 2014. Goldcoin has experience steady rise since 1960-1980s with the peak of $594. Then it experienced decline around the year 2000, with half price on $272. The following year, Goldcoin experience significant rise with $1664 in a year then decline again up to the year 2014 on $1255 price.
Global Rules and Acceptance
Goldcoin, in general, does not have any difficulties as it is accepted globally. Bitcoin is a bit different story. Countries have reacted differently with the existence of Bitcoin. Russian has banned it. South Korea rejected bitcoin as currency and Thailand not only rejected it, the bitcoin market is also shutdown. In Europe, various responses can be found in regards to this digital currency. Norway has expressed that bitcoin will not be accepted as legal currency. Switzerland chooses to research more about bitcoin, whereas France expressed concerned that bitcoins contain financial risks for business and individuals. Germany government decided that Bitcoin will not recognise as foreign currency or digital money, but it will be legal in form of private money or unit account so it can be taxed.
What’s the future for Bitcoin?
Bitcoin has a humble start in 2008 from a published paper out-line peer-to-peer electronic cash system, which later called Bitcoin. The idea is to use software code to authenticate and protect transaction without resorting to centralised bank or treasury. In 2010, an attempt to use bitcoin as the currency. Someone buy a pizza using 10,000 bitcoin after marketplace established. However, in 2011, bitcoins accounts were prone due to theft and hacking making the proponents of bitcoins decided to against it over legal and safety issue. In 2012, usage of bitcoin was more widespread however largely on the black market and illegal goods. Despite the bad images, some group such as educational and entrepreneurial groups continues to legitimise the currency. Early 2013 European authorities seize banking deposits which cause a surge in bitcoin interest. A price surge causes the collective value of bitcoin increased dramatically. In 2013 ahead, bitcoin faces ups and down, more progress in term of regulation worldwide. In parallel to that, more organisations are also open to received bitcoin as currency such as Chicago Sun-Times, Cyprus University and Baidu (Chinese google). Many predicted that Bitcoin will continue to strive in the future, and for goldcoin despite it has experience decline it still becomes one of the important precious metal and currency.