Re: rpietila Wall Observer - the Quality TA Thread ;)

This is one of the reasons I expect both a very strong bull market in Bitcoin combined with a brutal bear market in gold and other precious metals. So we could see BTC / USD in the 100,000 to 1 million range or higher and 1 oz of gold dropping to 500 USD or even below 100 USD. In effect a major transfer of wealth from gold to Bitcoin, kind of like the move from horse powered transportation to motor transportation 110 years ago.

I don't believe at all that bitcoin's rise means gold's demise. When bitcoin rises and holders diversify, a disproportionate amount is going to physical gold. I think this offsets the (also large) percentage of gold hoarders dishoarding gold to buy BTC.

Fiat is the thing I don't see anyone is interested in this scenario. It is also an instrument of slavery, because for every dollar you own, someone else is in debt the equal amount. It is shameful to have balances in most national fiats for this reason (ruble, yuan perhaps exception).

This is my strategy. Once the market value of a bitcoin equals the market value of an ounce of gold, a yet to be determined amount of my bitcoins will be sold/exchanged for gold. A small percentage mind you, as I'm a believer in the long-term progressive success of bitcoin. If something catastrophic happens (fatal flaw discovered in the protocol, whatever...), I will go down with the ship, bag in hand.

Why an ounce? Both ounce and bitcoin are arbitrary: gold can be measured in carats or grams, and bitcoins can be millibitcoins or decibitcouns or whatever. Isn't it better to compare market caps of gold and bitcoin?

$6,470,120,039,345
gold market cap

btc market cap
$ 8,249,485,143

[Apple market cap - 555.44 Billion]

So the time to diversify to gold will come when they'll match, i.e. when bitcoin will be half-million each.

no way dude. I have some gold and silver but I quit buying the second I heard about bitcoin.

imagine I have (I wish) 200 bitcoins. let's say I've been securing them myself for several years now and have multiple levels of security for my various wallets.

now let's say I want to diversify and move half of that into gold. that would be $500,000 X 100 bitcoin = 50 million dollars worth of gold. price is currently at about 1244 so that would be around 40 thousand ounces or about 1.244 metric tonnes of gold. ( Huh

not sure why those numbers work out that way, just weird?)

point is, where the hell are you going to safely store a ton of gold? and how much is it gonna cost you?

also, I thought this was an extremely good talk about bitcoin and gold and money in general and this conversation reminded me of it.

https://www.youtube.com/watch?v=aQTI1OFFFdw

Highly recommended.