Quote from: relative on June 23, 2011, 12:05:48 PM

Quote from: hugolp on June 23, 2011, 12:02:31 PM

Quote from: relative on June 23, 2011, 11:58:45 AM

gold is backed by thousands of years of history.

Also, gold has some qualities that Bitcoin does not have. On the other hand, Bitcoin does have some qualities gold ddoes not have. They are complementary.

right. I dont understand the negative reaction towards bitcoins by some goldbugs either.
the only chance gold will ever be used for trade again is by receipts issued by a central authority.
we've been there before. no authority can be trusted to not issue more receipts than gold was deposited.

libertarian goldbugs should welcome it anyway as one competing currency among many.

Yes, I think the biggest fear they have is the fact that gold has been used as money for centuries. With that being said, gold gains a significant increase in value. Also for centuries mankind has used gold to show off wealth in the form of jewelry. The other major use of gold is to produce coins or bars which is obviously used for investing. The reason people invest it/hoard it is simply because at one point it was used as money.

If this idea that gold is money is ever put at jeopardy then guess what happens to the value of gold? Falls off a cliff. Bitcoin puts seep competition against gold because lets face it, bitcoins are finite, difficult to obtain, and easier to transfer than gold.

Just to put it into perspective: Bitcoin is the cubic zirconia of the diamond industry. Why buy a real diamond when you can buy a zirconia diamond at a fraction of the cost?

The only real uses for gold are in the dental industry, electronics industry and scientific industry which only consume about 10% of the mined production. The rest goes into investments or jewelry. Most of the world entire history of mined gold is still in existence (ie. not thrown away). This is because most of it is recycled.