Re: Will Gold and Silver lose all its speculative value to Bitcoin?
I completely disagree. Bitcoin improves on gold for every property. Bitcoin is an evolution over gold. Cryptocurrencies are an evolution over PMs.
How does Bitcoin has "counter-party-risk" anyway? You can store your own private keys, it's actually easier than storing your own gold in sufficient quantities.
And stability? I think that's overrated, but at some point the value will stop its explosive growth.
Think we'll just have to agree to disagree.
Bitcoin has "counter-party-risk" because it's digital. Requires electricity, among other things. If all the lights go out, Bitcoin is useless but gold will still be extremely valuable, as it's been for thousands of years. You can't digitally evolve gold. You can digitally evolve fiat currencies, but not gold. As awesome as Bitcoin is, it still has no intrinsic value.Stability overrated for a currency? Yeah, probably not going to get many that agree with that. Stability is essential for usefulness.
Either gold and Bitcoin both have intrinsic value, or neither has it. The intrinsic value lies in the attributes. The fact that gold's a nice shiny rock was only useful for bootstrapping gold as a currency.
Either gold and Bitcoin both have counter party risk, or neither has it. Bitcoin functions fine without electricity, it's just the transfers which must occur off-blockchain then. But remember: gold transactions are ALWAYS off blockchain, Bitcoin's only in a weird and unlikely edge case.
Not all but a lot. PMs will still be held for a rainy day.
I didn't know you could make umbrella's out of PMs