Russia holds a far higher percentage in gold then most western governments. China is accumulating but still quite a low percentage. There is some historical precedent where gold is respected in even communist economies, apparently the USSR held a very high percentage in the 1950's but I read that a while back so dont have a source to post now.
The price on gold might appear to be nothing dramatic but I thought it was bullish ever since 2009 when it rose from its already high peak to greater heights. I realise its been pulling back a while now but I dont see that gold holdings are especially designed or intended to creative speculative profits. I go with the idea the price for gold never really changes, its just reflecting loss of value in the currencies used to purchase it and its a ten year asset type useful for a pension hold of value not trading to profits.
Anyone who wants to invest in gold has to take part in mining operations or maybe its use as jewellery. I think Buffet states the cheapest gold is mining on the high street, via his pawn shop operations. Otherwise just holding plain gold should appear to be totally boring, its just some metal and does not perform any task while unused. Also it requires no maintenance, BTC also I never think of as an investment by itself and it must be used but BTC is far more volatile and changing.
Growth based could be an argument so long as its being developed then that reflects in the base unit valued more highly but only indirectly by that greater usage. On the negative side if BTC does not progress then it falls back far more harshly, its far sharper in its peaks and troughs where gold is generally flat. Both react to US dollar strength or weakness as do many commodities but especially as they can be used as alternatives.
BTC has a greater monetary velocity but that doesnt make it superior to gold except perhaps for the sub gram transactions where a digital format has potential to be the most efficient method of instantly transferring value at the lowest spread. At present BTC is not as efficient as it needs to be to do well long term and overcoming this flaw could be key to regaining or just holding previous gains.
Theres zero likelihood of a goldbug or just any user of gold needing to give up on a failed market especially. Its perfectly inert and able to sustain its price vs a failing global reserve system based off politics. The most obvious long term argument for gold usage likely to rise over decades is net central bank buying. If the market itself does not reflect a reasonable popular price then still central banks continue to exchange gold as a reserve asset in settling debts between countries of especially large amounts. If that trend is rising that banks increase their holdings and its been true for a decade then in time the price for gold is not especially due to contract.
Bitcoin on the other hand I think best suits the smallest amounts transferred and perhaps the most often. It must be ready for that purpose to be useful and then value can be built upon that usage and higher speculative activity is justified. But the base case for BTC imo in enabling business that might otherwise not occur, this is no insult to refer to the smallest amounts as the greatest growth rates come from the smallest entities and as we all know most of the world is not rich.
If crypto can enable the poorest to greater confidence and efficiency in value transfer it would be such a positive event for all involved, thats a market with many billion people. Where as the simple base case for gold I mentioned is just between merely dozens who barter in many billions of worth, a much more restricted and staid market.
How does someone with almost nothing in our eyes get paid reliably for 2 dollar or less. Can BTC be helpful in raising monetary velocity between those people and enabling greater trade, employment, utility and growth from the smallest 'wealth' Growth of that type can double, it could be dramatic if possible to engage because the numbers who can use such a tool in their life is likely billions
USA just needs to reorganise and respect growth in its productive economy. In that change, some debt will not be paid because its not productive. USA by itself can self support from assets but it would no longer benefit from being the world reserve currency at that point. So money would cost more, its at this point the goldbug will say this means likely money is gold.
That money could then still be used internationally despite the failure of the previous political economy where as the debt could not, the dollar is tied to debt. That imbalance is where gold price or marketcap as per thread title is not falling long term
The price on gold might appear to be nothing dramatic but I thought it was bullish ever since 2009 when it rose from its already high peak to greater heights. I realise its been pulling back a while now but I dont see that gold holdings are especially designed or intended to creative speculative profits. I go with the idea the price for gold never really changes, its just reflecting loss of value in the currencies used to purchase it and its a ten year asset type useful for a pension hold of value not trading to profits.
Anyone who wants to invest in gold has to take part in mining operations or maybe its use as jewellery. I think Buffet states the cheapest gold is mining on the high street, via his pawn shop operations. Otherwise just holding plain gold should appear to be totally boring, its just some metal and does not perform any task while unused. Also it requires no maintenance, BTC also I never think of as an investment by itself and it must be used but BTC is far more volatile and changing.
Growth based could be an argument so long as its being developed then that reflects in the base unit valued more highly but only indirectly by that greater usage. On the negative side if BTC does not progress then it falls back far more harshly, its far sharper in its peaks and troughs where gold is generally flat. Both react to US dollar strength or weakness as do many commodities but especially as they can be used as alternatives.
BTC has a greater monetary velocity but that doesnt make it superior to gold except perhaps for the sub gram transactions where a digital format has potential to be the most efficient method of instantly transferring value at the lowest spread. At present BTC is not as efficient as it needs to be to do well long term and overcoming this flaw could be key to regaining or just holding previous gains.
Theres zero likelihood of a goldbug or just any user of gold needing to give up on a failed market especially. Its perfectly inert and able to sustain its price vs a failing global reserve system based off politics. The most obvious long term argument for gold usage likely to rise over decades is net central bank buying. If the market itself does not reflect a reasonable popular price then still central banks continue to exchange gold as a reserve asset in settling debts between countries of especially large amounts. If that trend is rising that banks increase their holdings and its been true for a decade then in time the price for gold is not especially due to contract.
Bitcoin on the other hand I think best suits the smallest amounts transferred and perhaps the most often. It must be ready for that purpose to be useful and then value can be built upon that usage and higher speculative activity is justified. But the base case for BTC imo in enabling business that might otherwise not occur, this is no insult to refer to the smallest amounts as the greatest growth rates come from the smallest entities and as we all know most of the world is not rich.
If crypto can enable the poorest to greater confidence and efficiency in value transfer it would be such a positive event for all involved, thats a market with many billion people. Where as the simple base case for gold I mentioned is just between merely dozens who barter in many billions of worth, a much more restricted and staid market.
How does someone with almost nothing in our eyes get paid reliably for 2 dollar or less. Can BTC be helpful in raising monetary velocity between those people and enabling greater trade, employment, utility and growth from the smallest 'wealth' Growth of that type can double, it could be dramatic if possible to engage because the numbers who can use such a tool in their life is likely billions
Quote
USA, on the other hand, is entirely dependent on other nations buying its debt
USA just needs to reorganise and respect growth in its productive economy. In that change, some debt will not be paid because its not productive. USA by itself can self support from assets but it would no longer benefit from being the world reserve currency at that point. So money would cost more, its at this point the goldbug will say this means likely money is gold.
That money could then still be used internationally despite the failure of the previous political economy where as the debt could not, the dollar is tied to debt. That imbalance is where gold price or marketcap as per thread title is not falling long term