51–60 of 107 posts
Gold, which is possibly the oldest store of value used by civilization, is just as volatile. The inflation-adjusted price per Troy ounce of gold went from a high of around $2400 in the the late 1400's, to a low of $200 in 1919; then, it rose in fits and starts until it peaked at nearly $1600 in 1980; it then declined, again in fits and starts, until it bottomed just below $400 in 2002; then it rose to nearly $2000 in…
Earlier quoted context omitted.
Except that during crisis Gold is guarantee to fall back at worst to it's "practical" value as a metal being used for jewelry. Even tulips bulbs have a practical value as every gardener could tell you. However the practical value of a crypto currency is zero. And no technical small talk was able to contest this truth so far. EDIT: Downvote what you can't contest, how mature!
Unless said crises is global and the internet is dead world wide you would always be able to sell your cryptocurrency to someone in a stable economic market somewhere in the world. When the local fiat currency inflates to worthlessness cryptocurrencies shine.
It's just that I think it's nonsensical to apply analogy between gold/bitcoin because of the lack of practical value of BTC.
For instance if the Russian ruble lost 30% of it's value during late Cold War. Would you argue that it's like gold and that we should'nt worry? Well actually some people thought that way... and got burned.
Again I'm not comparing, I'am precisely stating that we should not compare crypto currency to previous markets. We should embrace the fact that we are totally in an unknown territory.
Crypto currency, the currency for crooks based on air.
I used some bitcoin in place of a wire transfer last week. It worked well. Amazing what air can do these days!
Gold, which is possibly the oldest store of value used by civilization, is just as volatile. The inflation-adjusted price per Troy ounce of gold went from a high of around $2400 in the the late 1400's, to a low of $200 in 1919; then, it rose in fits and starts until it peaked at nearly $1600 in 1980; it then declined, again in fits and starts, until it bottomed just below $400 in 2002; then it rose to nearly $2000 in…
I can understand going for Gold or BTC if you do not have reliable access to US financial markets, but if you do have this, there's no reasonable financial argument for using BTC as your store of value.
If the dollar falls apart, you won't be able to use BTC.
Gold, which is possibly the oldest store of value used by civilization, is just as volatile. The inflation-adjusted price per Troy ounce of gold went from a high of around $2400 in the the late 1400's, to a low of $200 in 1919; then, it rose in fits and starts until it peaked at nearly $1600 in 1980; it then declined, again in fits and starts, until it bottomed just below $400 in 2002; then it rose to nearly $2000 in…
Further, showing that the actual price is between 200-2500 over 500 years is awesome demonstration of Gold's stability. If I buy 20 million in gold I might not make money over the next 50 years, but I will still be 'wealthy'. Cryptocurrency's have a nasty habit of simply disappearing much like individual stocks they could be around in 50 years and might be worth significantly more, but that does not mean they are worth storing in a giant vault.
Earlier quoted context omitted.
Except that during crisis Gold is guarantee to fall back at worst to it's "practical" value as a metal being used for jewelry. Even tulips bulbs have a practical value as every gardener could tell you. However the practical value of a crypto currency is zero. And no technical small talk was able to contest this truth so far. EDIT: Downvote what you can't contest, how mature!
Unless said crises is global and the internet is dead world wide you would always be able to sell your cryptocurrency to someone in a stable economic market somewhere in the world. When the local fiat currency inflates to worthlessness cryptocurrencies shine.
That's a pretty bold assertion without any evidence or real theoretical justification.
Gold, which is possibly the oldest store of value used by civilization, is just as volatile. The inflation-adjusted price per Troy ounce of gold went from a high of around $2400 in the the late 1400's, to a low of $200 in 1919; then, it rose in fits and starts until it peaked at nearly $1600 in 1980; it then declined, again in fits and starts, until it bottomed just below $400 in 2002; then it rose to nearly $2000 in…
Except that during crisis Gold is guarantee to fall back at worst to it's "practical" value as a metal being used for jewelry. Even tulips bulbs have a practical value as every gardener could tell you. However the practical value of a crypto currency is zero. And no technical small talk was able to contest this truth so far. EDIT: Downvote what you can't contest, how mature!
* For that laptop I can buy Windows with Bitcoin (https://support.microsoft.com/en-us/help/13942/microsoft-acc...).
* I can book my holiday with Bitcoin (https://www.cheapair.com/help/payment-and-billing/what-is-bi...).
* I can donate to Wikimedia with Bitcoin (https://wikimediafoundation.org/wiki/Ways_to_Give#bitcoin).
Can't really do any of those things with tulips or gold. This is just a small set of places where I can do purchases with Bitcoin.
As for currency, sure a tulip has practical value. But does a $100 bill? You can roll it for a cigarette or it can give you 5 seconds of warmth if you burn it. But that's about it. The reason you have all your savings in $ or € or something else, is because we all as a society say "this piece of paper (worth less than a cent in materials) is worth $5, and this one $50, and this slightly bigger one is $100". Same with crypto-currencies.
Earlier quoted context omitted.
I used some bitcoin in place of a wire transfer last week. It worked well. Amazing what air can do these days!
Given the fees now required to get anything through the network, was it actually worth it? A SEPA transfer is normally free these days (though not sure what the status of wire transfers in the US is).