If Bitcoin had a Bitcoin sibling born on the same day...
MrEureka
Posts: 24,258 ✭✭✭✭✭
...one exactly like it the Bitcoin we know, and another cryptocurrency backed by gold and not "minted" by computers, which one would have been the better investment?
Andy Lustig
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
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My snap answer: the one whose price is currently higher.
Seriously, though, if you don’t have physical possession, what’s the difference? Which one had better marketing?
I have a math degree, so the whole basis for “minting” bitcoin makes a reasonable amount of sense, but I bet for the layman it would be easier to get their head around the twin backed by gold, so I’ll answer your question with the bitcoin backed by gold.
Please explain how there could possibly be a gold backed crypto currency.
Check this out, https://tether.to
It's my understanding that these "Tethers" or USD₮ are digital tokens that are pegged to the value of a Dollar.
I think this concept could possibly be done for gold stored in a vault.
1 digital token, let's call it 1AU, that is created for each oz of gold in the vault.
The use of the blockchain as a ledger (one of its intended purposes) would offer a way that users can view & audit all gold stored in said vault.
It's all about what the people want...
If folks wanted gold, wouldn't gold be higher now already?
Knowledge is the enemy of fear
Looks to me like they want it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The mining equipment is backed by electricity which makes copper the real commodity.
I will stick with the real gold.... That being said, I wish I had risked a few dollars when bitcoin started...
Hindsight is always 20/20.... Cheers, RickO
So do I.
But knowing myself, would not have held it all, all this time, would have sold most of it long before now, and the last bit of it yesterday.
Liberty: Parent of Science & Industry
Bitcoin is no more backed by electricity or copper than a pile of dog crap is backed by Alpo.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Show a comparison graph to the SP500.....come on...I dare ya.
And seriously...since 1975 has gold even kept pace with a new Ford pickup?
Knowledge is the enemy of fear
you said folks don't want gold, the chart proves you wrong, once again. Changing the subject to Fords or the SP500 does not alter that.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
And crypto currency is no more minted by computers than Girl Scout cookies are baked by elves.
No, he didn't, no it doesn't, and yes it does.
Liberty: Parent of Science & Industry
Your chart doesn't show that folks want gold, only it's value relative to the dollar. According to your chart it takes 10x more dollars to buy an ounce of gold today than in 1975. Guess what, it takes 10x more dollars to by a pickup truck today than in 1975.
That what your chart shows. I just proved the folly of your mindset.
Knowledge is the enemy of fear
chart shows increase in demand. spend more time learning to read charts and less time trolling.
The only problem with having a pet troll is you have to keep feeding them.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I> @MrEureka said:
The better investment ? The Bitcoin, looking retrospectively.
To answer my own question, I think the gold-backed one would be worth more today, because I don't think the unbacked one would have died a quick and quiet death.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Your chart doest show that at all....stop embarrassing yourself.
Stop posting stupid and incorrect info.
Knowledge is the enemy of fear
stupid is in the eye of the beholder. more research, less trolling.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Well, let's see, x axis is time, y axis is price.... not seeing "demand" please point it out, thanks
Liberty: Parent of Science & Industry
what determines a price increase over a period of time? You too, more research.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"They" manipulate it!
I learned that right on here!
From you!!
Liberty: Parent of Science & Industry
I think the sibling would be called "bubblecoin"
My YouTube Channel
Inflation?
Knowledge is the enemy of fear
Back when fundamentals ruled markets an increase in demand caused prices to rise. Fundamentals no longer matter?
Who controls inflation?
And does this mean they indirectly control prices?
Good research topics for anyone willing to question what they are told.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Fundamental's are still and always have been important. Actual demand for gold, and the rate of increase of demand for gold has dropped dramatically over the last 6 years. Just look at the mint prosuction numbers as evidence. This is gold is lower than 6 years ago and is stagnant. Gold is not high on the want list for investors now. Perhaps one day that will change, but right now there is very little evidence or reason for that to change.
With the exception of the stock market and health insurance, most prices are the same as 8-10 years ago. Inflation is quite benign. Hopefully the seeds have been sown.
Markets control inflation and yes, markets control prices.
Knowledge is the enemy of fear
The demand for US Mint gold is only part of the demand for gold. Central banks and ETFs are certainly major players, and they couldn’t care less about AGEs.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Of course there is a market for gold, in all forms, industrial/technical, jewelry, collectible and ordinary bullion, leaf for Goldschlager and $1000 ice cream sundaes, dental (Weiss!) Etc.
As far as gold-backed any thing whether paper, electronic, "cloud", or even in the future, by direct brain to brain thought-transfer, if it ain't in yer hands, it's all trust in the counterparties.
Liberty: Parent of Science & Industry
Gold backed dollars kept the printing presses at bay for decades. This provided trust in the soundness and the stability of the currency. Faith drives markets as much as do greed and fear.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I'm still looking for a chart that shows demand for gold. Anybody? Someone show me this great demand growith and prove me wrong.
Knowledge is the enemy of fear
,
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Call APMEX, tell them demand is down and that they should therefore lower their price for you. They will probably tell you that their price reflects current demand (something already explained to you) - if they don't hang up on you.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Indeed....a price that has fallen behind that of all other assets.
I'm still waiting for that chart.
Here I'll help you..err, I mean me
https://timesofindia.indiatimes.com/business/india-business/gold-demand-seen-falling-to-lowest-in-8-years-in-2017-wgc/articleshow/61574528.cms
https://www.reuters.com/article/us-gold-wgc/gold-demand-slides-to-eight-year-low-in-third-quarter-of-2017-wgc-idUSKBN1D90H8
Knowledge is the enemy of fear
Yep, gold is down 9% since 2009. Yep, gold has doubled since 2006. Gold is protection, not an investment. You assume that holders of gold are not smart enough to also put some of their funds in actual investments.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
From the comments I've read on this very forum, many folks are not "smart enough".
Yes, it is protection, as I wrote in 2011 or 12, it will protect you from profits. Go ahead search it.
From Investopedia.....
An investment is an asset or item that is purchased with the hope that it...... will appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.
Protection is a condom.
So what is gold?
Still waiting for this gold demand growth chart.
Knowledge is the enemy of fear
We all strive to be as smart as you. An unrealistic goal, but a goal none the less.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Either God gave it to you or he didnt. All the trying in the world won't matter. Just sit back and listen.
Knowledge is the enemy of fear
If they didn't want it, wouldn't it be lower now already?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Gold has been higher than today in each of the previous 6 years. So you tell me.
Someday demand will increase, but right now, and you know this from industry sources Mr.Eureka, big buyers are scarce and bids are thin.
Knowledge is the enemy of fear
Those that still think of gold only as an investment need to climb out of their box.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
It's all so simple.