Central banks have been net buyers of gold every year for a quarter century now at least, it would be surprising news to find we are setting a new paradigm.
Surprise!!!!!
Bitcoin went live January 3, 2009.
Sure it has been taking a while for bitcoin to catch on, yet in the past 16 plus years bitcoin has been growing in its network effects (
as outlined by Trace Mayer).
So, yeah, a new paradigm is in play ever since 2009. You might want to get some in case the new paradigm shifting technology that allows value to be communicated electronically without being duplicatable catches on.
The reason that gold has risen so much both in that base usage but more notably pricing as a lagging indicator is the US dollar and/or global reserve system is in generational decline especially due to excessive debt and in turn excessive currency issuance.
You must be looking at different data.. If we look at the past 14-ish years, then I see gold largely dropping in compared to bitcoin, even though sure maybe it is rising only in the past 6 months or so in regards to the dollar.
https://www.longtermtrends.net/bitcoin-vs-gold/ At times previous we have seen nations with deflation or prices on average falling, a big positive like technology sector regularly sees deflation in pricing almost by expectation due to its vast growth and efficiency gains.
Comparatively we have nations (at least in governance) doing the opposite, becoming less efficient, more debt with lower currency and people poorer while doing more work, its why Trump is elected to the surprise of the richest elitist politicians who cannot understand they have failed voters most of whom are poor.
In some dystopian projections of the future, some imagine technology overtakes politics partly for this reason. The efficiency of machines becomes far more vital then the endless hot air production of political rhetoric, such that it becomes the central power of every nation.
I dont believe we can rely on technology to that extent, people are the nations greatest asset.
You are proclaiming that bitcoin is less important than gold as an investment because it is a technology?
A lot of shitcoiners fail/refuse to understand bitcoin because they consider it as a technology rather than a sound money. Probably lay persons also misunderstand bitcoin as a technology rather than as a sound money too.. and therefore they dismiss bitcoin's importance and/or its superiority to gold.
Sure, bitcoin uses technology in order to create a money that is more sound than any other money, yet the technological aspect of bitcoin not so important.. .but yeah, even longer term form members seem to fail/refuse to sufficiently understand bitcoin, which surely you should know better STT.. you been around here nearly a year longer than me.
Gold is unlikely to decline because its so simple and basically indestructible
Gold has been declining and it will continue to decline, especially relative to bitcoin, yet sure, if you measure gold in terms of dollars it may seem as if it is increasing in value.. .. but you should not be letting the dollar's debasement distract you from keeping your eye on the prize.. namely bitcoin.
where as business can be disrupted and tech sector requires a vast amount of investment ultimately from the people, they are originators of the nations wealth not anything else so I do think gold continues in its basic simple function.
You can believe all you like, and have fun staying poor (to the extent that you allocate in gold rather than bitcoin).
One of the aspects of bitcoin being such an immature asset remains that it will continue to appreciate in value much greater than gold or any other asset since it is in its earliest years of adoption.. so yeah, bitcoin's exponential s-curve still in progress.. which continues to give it an unfair advantages as compared with gold and/or any other assets, even though you seem to want to hang on to your shiny rock relic..
Even if that's true I can understand, not much utility for gold meanwhile BTC is the hottest high performing asset of now.
Bitcoin is not merely a fad. There are fundamentals that back it up.
Always remember gold supply is not finite, like it or not there are so many ways for gold to lose its value in the future with advancement of technology, it only need one asteroid with gold content that's mineable + sufficient space mining tech and gold value will plummet and honestly
we're not really far from that. Some people might call me lunatic for saying this.
Gold is not finite in its amounts on earth, either.. so bitcoin is more scarce than gold.
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First, I would like to thank you for this detailed explanation and comprehensive comparison between gold and Bitcoin. I also share your vision for the future of Bitcoin, which is better than gold in this digital age we live in, for the reasons you mentioned, such as Scarcity, verifiability, transportability, divisibility andability to privately hold without high costsetc...
However, most governments don't realize this at the moment, and I don't expect any of them to be inspired to see the future and prefer Bitcoin to gold. Many of them are not convinced about Bitcoin yet, but I expect that to change in the near future..
It is already changing. If you had not noticed, bitcoin is more and more in the zeitgeist and falling more and more into more financial circles. it is just a matter of time that the banks won't have a choice, whether they want to or not.
On the other hand, if you have cash and gold in your reserve, which one would you choose to buy Bitcoin with? For me, I would choose cash because it has no real value, while gold retains its value over time. This is what I meant in my previous post.
Many of us, even non-investors are frequently choosing which assets and/or currencies to spend first based on our perceptions of its tendencies to hold value or not. So we will tend to spend from the one that we consider is not going to hold its value, and perceptions about bitcoin holding its value are changing with time.. and more and more folks are choosing not to spend from their bitcoin as soon as they would have had done years back.. Of course, if you have been holding bitcoin since 2012, and maybe you have 500 or more bitcoin, then you might not mind spending from your bitcoin, in the event that you might have spent from some of your other assets first.
If someone holds a lot of gold, they may well choose to spend some of their gold rather than to continue to hold it. We cannot get into the heads of everyone, and surely people are going to have differing individual factors in terms of their other investments, cashflow and perhaps how long they might have had been in various investments or currencies that they hold.
While gold will stay, crypto will go up too. I am sure that we are going to end up with a better result with crypto soon enough, all because nations are either buying bitcoin, pr they do not sell the coins they get one way or another.
Hopefully most people and/or banks are not so retarded as to get involved in crypto.
Bitcoin should be their area of focus, to the extent that they might be wanting to compare it to gold.
For example, if a criminal does something and cops seize his bitcoin, the government puts them in sort of reserve, and not sell it. Back in the day, they sold it and that was the worst part because they would end up selling bunch of it all at the same time and cost us to have much worse results. This is why we need to be happy that these governments are keeping their coins, or even some are buying more, so it is a great thing for us. If we can convince them to just do this, nothing more, just this, then bitcoin has a very bright future ahead of it.
It might not necessarily be in our interest that governments are buying and/or choosing to hoard bitcoin (and drive up the price), yet we cannot really stop who buys bitcoin, and they surely might not disclose their buys and/or their ongoing exposure to bitcoin unless they might be required to do so.