With early 2018 proving to be a wild ride for many cryptocurrencies, Bitcoin has endured one of the highest peaks and troughs.
The original and most popular of the “coins” saw it reach a peak of over $20,000 USD per coin – only to topple in the coming weeks.
Citing investor frustration, Global Reserve Bitcoin Bank Chairman Howard Keffler announced today that the cryptocurrency will be looking to more traditional forms of valuation.
“At the moment Bitcoin is based purely on speculation, it has no actual tangible value. While this has benefited those investors and miners who got in early, it has affected the ability for the coin to grain credibility in traditional investment markets. For this reason alone we are looking to leverage traditional physical items to determine the value of Bitcoin going forward.” Keffler stated.
While there have already attempts for alternative cryptocurrencies to be created on the value of physical assets such as bananas, these have been seen to be too risky by the market due to weather factors that cannot be regulated by modern technology (yet).
Keffler identified that diamonds had been initially considered, however as their valuation is based on cartel pricing this would not be suitable for the modern cryptocurrency investor.
“Gold has been the mainstay of currency markets for decades, it’s something that Bitcoin aspires to replicate. And because gold isn’t going anywhere our board chose to follow the “if you can’t beat them, join them” approach, and voted unanimously to base Bitcoin’s value on that of gold.” Keffler said.
With news of this announcement several cryptocurrency traders bought large volumes of gold which caused the price to skyrocket, further inflating the value of Bitcoin.
The cryptocurrency market closed today with a Bitcoin value of <insert current price here>.