Timothy Coles, an owner of a gold mine in Dawson city in Canada, has decided to sell its $2 million gold mine for 3,200 bitcoin. It is now on sale on the luxury BitPremier marketplace.
Speaking to CoinDesk, Coles told that he first knew about bitcoin in Phillipines. His growing interest in the digital currency led to the discussions about how bitcoin could fit into plans of selling his gold interests in Dawson city.
Coles believes that bitcoin has great prospects in the future. He said: “I believe bitcoin has nowhere to go but up. In the long run, it’s just going to get stronger and stronger and stronger.”
Although Coles owns no bitcoin yet and does not know how to spend the cryptocurrency, he pointed out that he is open to invest in the broader bitcoin sector, including the mining industry.
The gold mine, which is currently on sale, generates revenues of $1 million annually.
Comparing gold and bitcoin, Coles noted that prices on the virtual currency market are determined by demand and supply.
Gold is now under geopolitical pressures that have made it less attractive option in the recent years. He said: “The people that have the bitcoin are the ones that can drive the price up, or drive it down, depending on what ups. Whereas gold, the people that have the gold are really at the mercy of politicians, financial institutions, London fixes that we really know nothing about. People that have gold really have no control over the direction that goes.”
He added that the tendency is likely to affect bitcoin. Still, he stated that decentralized nature of cryptocurrency makes it “less susceptible to manipulation compared to gold”.
Coles also said that the main problem of bitcoin is lack of awareness and education among people. This is because bitcoin has no certain definition, like property, commodity or currency. People don’t know how to use the digital currency and how they can acquire it.
He told: “I believe that bitcoin needs some advertising the world over to learn more about what it’s all about. Nine out of 10 people I talk to have heard of bitcoin, but they don’t know about it, they don’t understand and they don’t want to because it’s out of their realm of understanding.”
Speaking on the political impact on bitcoin, Coles said that in the environment with people understanding how to utilize the cryptocurrency, bitcoin market could exist without the influence from the outside.
After the sale of his gold mine, Coles plans to look for new opportunities in the gold market. Moreover, the prices for an ounce of gold increased in 2012 and 2013 to over $1,700.
The sale includes an existing lease in Bonzana Creek region and a property in Canyon Creek. Coles added that Bonzana Creek offers a big potential for investors as the region is famous for the abundance of gold.