So of the 10 trillion market cap for gold what % is that.
Also a USB key with your bit coin is easier to use as a buttplug then a bar of gold. So I want a small amount of gold for bribes and the rest of my wealth much more hidden.
god knows, it would be hard to separate the motives for buying gold or diamonds in the long term, they are jewelry that keeps the wife happy, they also are fairly stable as a way of storing wealth so if you are a muslim in India or China right now you might not be wholly buying it as an escape plan as opposed to being Jewish in Europe in the 30's or Iran in the late 70's, but I suspect it would be at the back of alot of peoples minds when they are trying to decide what to do
Why does a finite supply limit it’s ability to become an inflation hedge. Bitcoin is inherently deflationary.
I agree that if other crypto’s provide an easy substitute for Bitcoin then bitcoins ultimate value is pegged to the total supply of virtual currency and not bitcoins. This is what will put a cap on bitcoins value and it’s unclear what mechanism would set price. Gold is valuable because it is gold (yes there are industrial uses) but it’s value is really driven by the cultural value placed on it. Are we creating some weird cultural value of Bitcoin?
I didn't say that it can't be an inflation hedge - lots of things can be an inflation hedge, including your house.
The comment I was referring to suggested it could replace gold as the inflation hedge. It can't - there isn't enough of it to be universally held.
So of the 10 trillion market cap for gold what % is that.
Also a USB key with your bit coin is easier to use as a buttplug then a bar of gold. So I want a small amount of gold for bribes and the rest of my wealth much more hidden.
trouble is all scenarios except the buttplug arent life or death, the buttplug one is though, its why Indians buy gold jewelry for their wives, it is status for weddings and the like but it is also the families emergency bug out fund in a country where being able to flee is a neccesity
We in the west dont have to worry that the result of the federal election means we have 2 or 3 days to get to the border, alot of the world does though, as long as that's the case Gold diamonds and US dollars will always be the safest place to store wealth for a large chunk of the world
Not sure I agree with gold, diamonds and US cash being the safest in a lawless situation. It's alot easier to steal cash or whatever than crypto.
Not sure I agree with gold, diamonds and US cash being the safest in a lawless situation. It's alot easier to steal cash or whatever than crypto.
Sent from my SM-G973W using Tapatalk
If they know you have it its all the same, they aint stealing it they are 'persuading' you to give it to them, what you need to bribe, well anyone, is something you can offer him without his superior knowing, if the captain finds out you are hooped (and dead) and the cop doesnt get anything either as the guys above get it, the nice thing about gold coins or US dollars is everyone knows what they are and what they are worth and they are fairly easy to use quietly, the classic 50 bucks with the drivers license or 3 or 4000 with the passport
If they know you have it its all the same, they aint stealing it they are 'persuading' you to give it to them, what you need to bribe, well anyone, is something you can offer him without his superior knowing, if the captain finds out you are hooped (and dead) and the cop doesnt get anything either as the guys above get it, the nice thing about gold coins or US dollars is everyone knows what they are and what they are worth and they are fairly easy to use quietly, the classic 50 bucks with the drivers license or 3 or 4000 with the passport
Exactly correct, I agree with you. If they know you have it, consider it vulnerable. If you need to bug out of your country and find yourself at a roadblock and being shaken down it's far easier to hide the fact you hold crypto than cash or physical gold. You wouldn't even need a hardware wallet on your person for your crypto to be safe in such a chaotic situation.
Exactly correct, I agree with you. If they know you have it, consider it vulnerable. If you need to bug out of your country and find yourself at a roadblock and being shaken down it's far easier to hide the fact you hold crypto than cash or physical gold. You wouldn't even need a hardware wallet on your person for your crypto to be safe in such a chaotic situation.
Sent from my SM-G973W using Tapatalk
this I would agree with, the thing that crypto isnt good at is buying you a way across the road block, for that you need something you can barter with quickly there and then, for that you use gold coins, US Dollars, even a decent watch will work
No worries, we'll just sub-divide it and make it worth more!
Yeah, that's exactly how an inflation hedge works.
That’s exactly how gold works. An any point in time there is a relatively fixed supply as changes to production capacity take time to produce to market.
If there is 10 trillion in gold and no one is selling it the price rises until it meets demand and people by smaller amounts. Now over time the price of gold comes back down as more gold is mined.
The argument against Bitcoin as an inflation hedge is that other coins will be able to be continually created which means an infinite supply of virtual currency and therefore it is inflationary.
That’s exactly how gold works. An any point in time there is a relatively fixed supply as changes to production capacity take time to produce to market.
If there is 10 trillion in gold and no one is selling it the price rises until it meets demand and people by smaller amounts. Now over time the price of gold comes back down as more gold is mined.
The argument against Bitcoin as an inflation hedge is that other coins will be able to be continually created which means an infinite supply of virtual currency and therefore it is inflationary.
It’s not that there is too little.
They are not the same at all.
You are suggesting infinite divisibility, in order to have enough value to cover needs. That is not at all what happens with gold.
I once read a good explanation on gold (that is now very antiquated but still makes the point)... "400 years ago, an ounce of gold would buy a nice gentleman's suit. One hundred years ago, an ounce of gold would buy a nice gentleman's suit. Twenty years ago, an ounce of gold would buy a nice gentleman's suit. And today, an ounce of gold will buy a nice gentleman's suit."
That is why it is THE inflation hedge.
Gold has been gold forever. If you store a bunch of it (say, because you are a sovereign government), you can rest assured that, a year from now, or 5 years from now, or 50 years from now, it will still be what it is, behaving the same way (financially)
Bitcoin is not that. Not at all. It could be rendered worthless by new technology, getting hacked, or simply a loss of faith.
They are not the same thing and Bitcoin will never replace gold.
The Following User Says Thank You to Enoch Root For This Useful Post:
That’s exactly how gold works. An any point in time there is a relatively fixed supply as changes to production capacity take time to produce to market.
If there is 10 trillion in gold and no one is selling it the price rises until it meets demand and people by smaller amounts. Now over time the price of gold comes back down as more gold is mined.
The argument against Bitcoin as an inflation hedge is that other coins will be able to be continually created which means an infinite supply of virtual currency and therefore it is inflationary.
You are suggesting infinite divisibility, in order to have enough value to cover needs. That is not at all what happens with gold.
I once read a good explanation on gold (that is now very antiquated but still makes the point)... "400 years ago, an ounce of gold would buy a nice gentleman's suit. One hundred years ago, an ounce of gold would buy a nice gentleman's suit. Twenty years ago, an ounce of gold would buy a nice gentleman's suit. And today, an ounce of gold will buy a nice gentleman's suit."
That is why it is THE inflation hedge.
Gold has been gold forever. If you store a bunch of it (say, because you are a sovereign government), you can rest assured that, a year from now, or 5 years from now, or 50 years from now, it will still be what it is, behaving the same way (financially)
Bitcoin is not that. Not at all. It could be rendered worthless by new technology, getting hacked, or simply a loss of faith.
They are not the same thing and Bitcoin will never replace gold.
Gold is Gold because it is gold. Gold could be rendered worthless by a loss of faith. These are the exact same arguments made thousands of years ago when gold became gold. Why would anyone want gold. People want gold because it is gold. Gold is the skin of the Gods not a holder of value.
The question is can Bitcoin replace gold. The answer is yes it could. To say never just misunderstands what Bitcoin is.
Your suit argument is also true regardless of the price of gold happens to be. Because the definition of nice suit gets to change to make your point and you get to cherry pick years. In 2000 Gold was $400 per ounce, $2000 in 2012 and $1100 in 2016. I was not aware the price of a suit changed that dramatically this century. $100 in 1900 is 3100 today gold was $20 an ounce making it worth about $600 today. So if I bought gold in 1900 I would have a have made 90-100x return vs 30x for inflation. By your argument that is not an inflation hedge.
It is certainly questionable whether in the next 25 years it stabilizes or not or is replaced. It’s kind of funny that the threats like hacking and being replaced with technology have similar analogs to gold in theft and mining tech resulting in cheaper extraction.
I think it’s weird that people are so keen to dismiss Bitcoin with absolute statements
Gold is Gold because it is gold. Gold could be rendered worthless by a loss of faith. These are the exact same arguments made thousands of years ago when gold became gold. Why would anyone want gold. People want gold because it is gold. Gold is the skin of the Gods not a holder of value.
The question is can Bitcoin replace gold. The answer is yes it could. To say never just misunderstands what Bitcoin is.
Your suit argument is also true regardless of the price of gold happens to be. Because the definition of nice suit gets to change to make your point and you get to cherry pick years. In 2000 Gold was $400 per ounce, $2000 in 2012 and $1100 in 2016. I was not aware the price of a suit changed that dramatically this century. $100 in 1900 is 3100 today gold was $20 an ounce making it worth about $600 today. So if I bought gold in 1900 I would have a have made 90-100x return vs 30x for inflation. By your argument that is not an inflation hedge.
It is certainly questionable whether in the next 25 years it stabilizes or not or is replaced. It’s kind of funny that the threats like hacking and being replaced with technology have similar analogs to gold in theft and mining tech resulting in cheaper extraction.
I think it’s weird that people are so keen to dismiss Bitcoin with absolute statements
The reason Gold is gold is because nothing else can be gold, other metals have different properties but only gold is tarnish free, infinitely maleable, conducts electricity, reflects heat etc, any and all bitcoins can perform exactly the same function as bitcoin, I suppose the equivalent would be if all metal on earth was exactly the same as gold.
Of course there is always the obvious other difference that Gold has a purpose beyond its ability as a store of wealth, almost all of the worlds Gold is performing a function seperate to storing wealth, jewelry, electronics etc while at the same time also storing wealth.
I also wouldn't underestimate the inherent psychological value in owning something that actually exists,
Last edited by afc wimbledon; 02-26-2021 at 11:14 PM.
You guys should shut up and buy some Cardano...if you like money that is
why, do you think it will take over from Bitcoin? that would be my fear, some better crypto comes along and all of a sudden my crypto assets are wholly valueless
