People often like to draw parallels between Bitcoin and gold. In the minds of many industry experts, both assets are direct competitors. That is rather strange, considering Bitcoin and gold could hardly be less alike. That does not mean there is no relationship between Bitcoin and bullion, even though that relationship’s nature may be surprising to some. One Australian gold seller figured it would be a good time to expand his business to Bitcoin. He is the first in the country to trade in Bitcoin as a gold and silver bullion dealer.
Gold and Bitcoin Attract Similar Crowds
The similarities between gold and Bitcoin have been documented multiple times over the past few years. Both assets are pretty scarce, although no one knows exactly how much gold is left to be mined. With Bitcoin, one knows exactly how many coins there are and by what time they will be brought into circulation. It is this scarcity which attracts the gold crowd, although it is far easier to obtain Bitcoin these days.
Additionally, the Bitcoin situation in Australia has changed quite a bit this year. After a few lengthy debates, the government finally decided to get rid of the double-GST standard related to digital currencies. Previously, owners of Bitcoin and cryptocurrencies were taxed twice – one tax for purchasing the currency and another to purchase goods and services with it. As of July 1st, the purchase of cryptocurrencies is no longer subject to GST.
With Bitcoin now considered a legitimate currency in Australia, interest in the world’s leading cryptocurrency has picked up quite a bit. It even attracts the attention of well-known gold and silver bullion dealers these days. Paul Engeman is the director of Ainslie Bullion & Reserve Vault and has recently started trading Bitcoin. He started buying and selling cryptocurrency in August and has already seen a growing demand from both existing and new customers across the country. This is a pretty intriguing development which foretells a positive future for Bitcoin in the country.
Although Ainslie Bullion & Reserve Vault will maintain its focus on gold and silver bullion, their decision to expand to Bitcoin trades is pretty significant. After 43 years of only focusing on bullion, making the switch to Bitcoin is a logical evolution. Its customers see similar monetary properties in Bitcoin as they do in gold and silver. Bitcoin has intrinsic value and is a medium of exchange. Bitcoin can certainly overtake both gold and silver bullion in terms of demand, but it will be a long and slow process.
Bullion dealers are not the only Australians showing an increased interest in Bitcoin and cryptocurrencies. Chris Tippler, a Brisbane high school teacher, is educating his business and economics students on cryptocurrencies including Bitcoin and digital assets such as Ripple. He is also dispensing basic advice on how best to trade this new breed of money, as that is still one of the biggest hurdles to overcome for novice users.
All things considered, it is safe to say cryptocurrency adoption in Australia has been booming lately. With the legal recognition of Bitcoin as a currency, the ecosystem is flourishing. We can only hope to see other countries around the world take similar action in this regard over the coming years. For now, the U.S. and Europe are not showing any interest in legalizing cryptocurrency whatsoever. They are not openly opposing it either, other than some U.S. states such as New York and Washington. It is an interesting development to keep an eye on.