Is Buying Bitcoin Like Buying Gold?

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Dec. 23 (Bloomberg) -- Citigroup Global's Steven Englander discusses bitcoin on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Like the people who buy gold.

If you can figure out why you buy gold.

They are distrustful of the government, what a store of value nobody else can get, that sort of thing.

Are they going to trade in tandem?

Not in perfect correlation.

As you said, the people who like gold and people who like bitcoin -- they do not want to be inside the financial system.

They do not want to be in a fiat currency.

We have seen central banks balance sheets expand.

One lesson i would draw is negative for bitcoin and goal.

-- and gold.

How forgiving people are of high it currencies -- of fiat currencies.

Whatever it you see hints of tightening, everybody rushes back.

Why?

If fiat currencies are backed by trust in that paper.

Tom keene will say it is backed by the taxing power of the u.s. as far as the dollar is concerned.

All central banks seem to be on a mission to do the currency that the issue.

I am not talking about now, i am talking about all central banks, forever.

Why do we trust them when we know they are going to debase currency?

They have not done the weimer republic the basement.

Hyper inflation, things get out of control.

That has been developed for the central banks.

Goods and services inflation has been under control.

I think as well at the end of the day, the taxing makes a difference.

They can be regulated, that makes a difference.

I can name about 7 or 8 electronic currencies, i expect you can name 48. if you are concerned about the expansion of central bank balance sheet.

You add the electronic currencies, you say what is the control in the aggregate?

Each one there is a limit, but taken together, what is the control?

There is a limit.

For bitcoin, they can only make 21 million.

That is a problem, you end up with not enough currency for demand.

It can be spent down to -- right now the eighth decimal place.

Let me show you, speaking of security, what happened on friday on street smart.

Adam, here you go.

Trish, here you go.

Wow.

A private key on the inside that you can access and load into your wallet.

If you have a block chain wallet or corn-based wallet.

This is what i put on my phone.

Exactly.

When i went to buy or sell, i put this on the computer, the computer reads it to debit my account.

That is right.

Here is a good point to the new ness, a good lesson to learn as far as the currencies.

What we showed was a -- it is like i gave everyone a copy of adam's debict card and pin number.

It is like i passed out his social security number.

Almost instantly, someone froze the hd picture and copy the private key and took the money out of that christmas wallet.

It was only $20. the person, on reddit, he said he will give it back.

Just to be aware, do not go showing your private key around.

A good lesson to learn.

Security is a lesson with the choir.

If you passed out your pin number, it would be an issue.

Stephen englander of citigroup, thank you for joining us.

Per flickinger, thank you for joining us.

Mike, forex.

We do not have a bitcoin quote.

Other currencies strengthening against the dollar.

You can see it with the euro/dollar, aussie dollar,

This text has been automatically generated. It may not be 100% accurate.

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