Up until this point, the calculators at CoinApps.com have always displayed their precious and base metal melt values, denominated in fiat currency. Fiat currency, as you may know, is the state-issued currency of any particular government, or union of governments, and is considered to have monetary value simply because its issuing authority says so. A few examples of fiat currency would include the: U.S. Dollar, Euro, British Pound, Japanese Yen and Indian Rupee.
One of the main criticisms of fiat currency is that it tends to lose its purchasing power over time. Governments have a long history of creating more and more fiat currency, in order to fund their ever increasing projects; especially once regular revenue from taxes falls short. This inflation of the state-issued currency is what convinces some people to move their money into alternative currencies, such as the traditional hard currencies of gold and silver.
Recently, a new type of alternative currency has been gaining popularity. Bitcoin is a peer-to-peer cryptographic digital currency that came into existence in 2009. Unlike gold and silver, bitcoin does not exist in physical form, but is rather a virtual currency that can be stored and transferred on a computer or smartphone. Bitcoin is not issued by any government or central authority, and the programming in its source code prevents it from hyperinflation by limiting the total number of bitcoins that can ever exist to just 21 million.
There is a lot more you can learn about bitcoin that is beyond the scope of this short blog post. There is a good video, as well as information and links to more research at: https://www.weusecoins.com/. Please understand that bitcoin is still considered to be an experimental new currency, and as such there is a lot of risk involved if you should choose to invest in it. The price of bitcoin has been extremely volatile. As of this writing, the price of bitcoin in this year of 2013 has ranged from $13 to $266 USD per bitcoin. You might like that amount of volatility if you’re a swing trader, but those that are faint of heart may want to steer clear.
For those that have caught the bitcoin bug, there is a new calculator for you to try at CoinApps.com. The Bitcoin Calculator for Gold is just like the scrap gold calculator that was released back in April, except that it converts the spot price of gold from dollars to bitcoin, and then tells you how much the gold melt value is worth when priced in bitcoins.
In order to make its conversion, the bitcoin calculator must first start with a base price for both gold and bitcoin that is denominated in a fiat currency. The default fiat currency is U.S. Dollars, but you can change that to Euros, Pounds, Pesos or any one of 10 other currencies listed in a drop-down list. The calculator is automatically populated with the current prices for both spot gold and bitcoin; however you can change those values to any other values of your choice.
Please note that the price of bitcoin, and the availability of a bitcoin price quote, can vary quite a bit from one bitcoin exchange to another. The bitcoin price that is provided in the calculator should only be considered as an estimate that has been derived from one or more of the bitcoin exchanges. You may need to enter the bitcoin price manually if the provided estimate seems off. This new bitcoin calculator is now ready to use at: