BizSugar.com › Finance › Is Paying with Gold the Answer to Bitcoin Instability?

Why one of the world's more old-fashioned currencies has suddenly become innovative.

Despite these advantages, digital currencies have problems. The anonymity, lack of regulation, volatility, and potential for illicit usage, all contribute to risk on an investor's part. A single Bitcoin rose past the $1,000 mark in late 2013, crashed afterwards, and has since "normalized" to around $300 each coin. Generally, volatility is an inherent disadvantage of any currency that relies mostly on the forces of demand and supply without being anchored on another, more stable, commodity such as tradable gold, oil and the like.