By Mark Skousen
Gold and silver have been in a bear market for the past two years, but a private alternative currency is all the rage and has tripled in value this year! Bitcoin is a private digital currency, created in 2009, which now has a monetary base of $1 billion. It is in many ways like a gold standard with limited supply and no central bank or government control. But, unlike the gold standard, there are no storage fees. The supply of Bitcoins is strictly limited by the owners who can only create more by solving complex mathematical problems that grow more difficult over time. In other words, real resources are used to make more Bitcoins.
As you can see from the chart below, the price of Bitcoins has skyrocketed this year -- it is seen as a private alternative to government money, or even gold, in a time of crisis (such as the Cyprus debacle).
The price of Bitcoins may rise further as investors catch on to its viability. Bitcoins even may develop into a “tulip mania.” It’s early in the game, so investors may want to play it safe for a while. To buy Bitcoins, go to www.bitcoin.org.
Bitcoin is not an actual physical coin, and if computers are shut down, you can't buy or sell them. That's why nothing will ever replace gold and silver coins themselves, and all investors should have them at home or in a safe deposit box.
To learn more about this exciting new currency alternative, we are having a special session on “Bitcoins, The New Private Gold Standard,” at FreedomFest, led by Jeff Berwick, the Dollar Vigilante, and Jeffrey Tucker, president of Laissez Faire Books. Jeff Berwick has been on CNBC and other media lately talking about creating the first Bitcoin ATM machine. Want to learn more about this exciting private currency? Come join us and learn: visit www.freedomfest.com or call Tami Holland, 1-866/266-5101.
To keep up on the latest investment activities, check out Eagle Daily Investor, where my e-letter appears each week.