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BUSINESS REPORT: Will Bitcoin replace gold as a store of value? Not likely

A Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015. REUTERS/Benoit Tessier/File Photo

Bitcoin, the cryptocurrency that traded at $750 a year ago, breached the $10,000 mark Tuesday morning and went through the $11,000 level early Wednesday morning.

Potentially a transformative technology, it’s up more than 1,000 per cent this year alone, compared to the Standard & Poor’s 500, which went up 17 per cent in 2017, and the Dow by 21 per cent.

Meanwhile, gold has added about 13 per cent and copper is up 23 per cent, all notable numbers in a very positive year for asset prices.

According to the Wall Street Journal, investors have set aside any doubts of investing into the cryptocurrency due to potential criminal elements, adding that they’ve decided to focus on the technology “and the prospect that it could replace gold as an investment.”

Even though that is an unlikely scenario and Bitcoin may very well be a bubble ready to pop, it does look like cryptocurrencies could become more mainstream.

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