Quote from: AlexGR on August 14, 2015, 04:56:37 PM

Quote from: RealBitcoin on August 13, 2015, 06:04:54 PM

Alright then I was a bit wrong, so that gives intrinsic value to gold, splendid.

However I still disagree with the gold price. If that is all what gives value to gold, then perhaps gold should be = to silver.

Remember that the mining scheme of BTC is economically modeled, in a way, after gold mining and commodity production costs as fair value.

Satoshi said: "The price of any commodity tends to gravitate toward the production cost. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more. At the same time, the increased production would increase the difficulty, pushing the cost of generating towards the price. In later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around."

BTC and Gold, in a way, are similar due to the energy-value-backing used to mine them.

Yea but gold mining isn't necessary, while bitcoin mining it is.

I disagree with satoshi on that, the price is always set by supply and demand (unless its rigged at which point it doesnt matter).

Quote from: AlexGR on August 14, 2015, 05:01:02 PM

Quote from: RealBitcoin on August 13, 2015, 05:24:01 PM

Gold as an investment object, has "investment value", which is separate from it's intrinsic value, and its definitely overhyped.
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Gold will be only an overhyped instrument for gold bugs, and for central banks storage (who obviously dont know anything about the economy, otherwise wouldn't ruin it)
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Opportunists already know this. Gold is a sinking ship on the long term.

You have to understand that there are economies where the national currency is devalued at a rate that makes gold a much better prospect than holding the national currency for the long-term. India has a tradition of gold-buying and, not only that, but they actually consider gold as money and fiat as something useless to be dumped to get gold.

Some western economies with strong currencies do not see the issue of gold in the same light, but, then again, western economies are not suffering from rampant inflation or rampant currency devaluation etc.

In the end of the day, gold is priced by fiat. And if fiat money supply is increasing rapidly, then the ratio of fiat supply:gold supply favors an increase in the price of gold. So it's not a foregone conclusion that gold is a sinking ship etc etc. In fact, maths point to the exact opposite happening as fiat supplies increase.

The fact that gold/silver prices are suppressed by virtual supply, is one more element we have to consider. If one man can make a campaign like "crash jp morgan, buy silver" and take silver from <10$ to 50$ for the lolz, then that doesn't really provide much confidence for the fiat scam.

Yea but why would you buy gold if bitcoin is a better alternative. Sure there could be some rich guys in India that dont know or dont trust bitcoin yet, but once they begin to trust bitcoin more, i`m sure bitcoin will prevail.

Not to mention that after a bail-in haircut theft session begins, the popular targets for the haircut will be: saving accounts,checking accounts and gold vaults. Bitcoin cannot be stolen by that large amounts.

Quote

In the end of the day, gold is priced by fiat. And if fiat money supply is increasing rapidly, then the ratio of fiat supply:gold supply favors an increase in the price of gold. So it's not a foregone conclusion that gold is a sinking ship etc etc. In fact, maths point to the exact opposite happening as fiat supplies increase.

The fact that gold/silver prices are suppressed by virtual supply, is one more element we have to consider. If one man can make a campaign like "crash jp morgan, buy silver" and take silver from <10$ to 50$ for the lolz, then that doesn't really provide much confidence for the fiat scam.

Sure but that is inflation hedging, you dont make ROI with that, you just keep your previously owned wealth.

With bitcoin you can do ROI as the bitcoin economy is rapidly expanding (without printing money schemes) and wont have "recession", because in a free market you cannot have recession as every minor tragedy is priced in rather than postponed for 8 year crash cycles.

The virtual supply is a concern, because it can be a pump and dump scheme, who knows maybe their plan is to surpress the price, buy it all up, and then when it starts to go up they will sell into the rise (very popular trading tactic), and then it will collapse back.

Since gold cant be used as a currency, i already told you that the only thing you can do is to BUY LOW & SELL HIGH (OR BUY HIGH & SELL LOW if you get suckered into the ride)