Topic: Bitcoin Gold Standard (1 BTC = ~ 8 KG GOLD) (Read 475 times)

Beside the fact that gold and bitcoin are commodities, they don't have much in common.  I fail to see why would someone bond bitcoin and gold value?

This post made me realize Bitcoin had so much price potential. If Bitcoin had the same market cap as gold, it'll be evaluated at ~$400,000.

But I still don't like it. Pegging Bitcoin to gold means limiting Bitcoin price. Why should it be pegged to gold? Bitcoin could be more valuable than gold. Besides the fact that Bitcoin is limited to 21 millions, Bitcoin is also a technological advance that has real uses and backed by science. It should worth a lot more than gold that is just a store of value because of it's physical properties with no real uses.


Well if 1 Bitcoin is $400K, your "regular income in Bitcoin" won't be as much as it is right now. It'll be only some satoshis, which isn't so significant.

Bitcoin doesn't need to have a standard as fiat used to have back in 1971.

Why? because countries are unable to print any more bitcoins, and no one control the currency, the whole idea about gold standard is that it prevents countries from printing too much money which could lead to inflation.

Because the number of the total bitcoins is already known and is constant,there's no need to back the price with gold, price is being backed by total supply/demand.
 

There is much speculation on the motives behind ending the gold standard.

In that era fiat money may have represented what electronic money is today. There's a push to end paper fiat to create a cashless society. Some speculate this would give banks a monopoly over currency exchange. Ending the gold standard may have had similar motivations. The intent may have been decreasing competition between fiat and precious metals to create a goldless society, which would prop up a fiat based monopoly.

Though the gold standard may have been manipulated it never hyperinflated the way fiat money does due to its limited supply. A society with both fiat and gold standards competing would have made this fact obvious. If modern day venezuela had a gold standard, golds value would remain steady while the bolivar--venezuela's paper fiat hyperinflated massively. Ending the gold standard allows people to elude this simple truth of finance/economics. Perhaps one reason why gold standards are no longer supported en masse.

Of course everything said about gold standards here could also apply to crypto or altcoins with limited supply. Ethereum could hyperinflate due to its supply being limitless. But other alts with limited supply, like gold, could not hyperinflate which makes them look attractive and superior in times when hyperinflation hits markets.

Having boose bumps right now while I was reading your post. Its quiet good thing that bitcoin is getting so powerful at its valuation. The 8 KG’s gold per bitcoin, dam thats really crazy. This would gives us full pledged richness and we will never die out money problem ever. The system of grading the currency seems to be good although heard it first time. But wondering how  they generate the price of bitcoin itself? I know it all depends on demand and supply thing but there is also government involvement which makes it sometimes covered with those ground nuts. Anyway the 8 KG’s seems completely possible to me because the bitcoin already gone wild at this hardest part of the time. Eventually many people will get into bitcoin and again the demand is increasing while supply is going down day by day. Hope to reach that goal soon.

This will be so awesome. Imagine that yoy have a regular income in bitcoin. In just no time you can acquire huge mount of gold which is so hard to obtain in the real world where bitcoin does not exist. Imagine even a student will be able to buy gold?

Possibilities in bitcoin is really deep which became the reason I involved myself to it

Gold Standard Act:

...the dollar consisting of ... (1.67 g) of gold ...  shall be the standard unit of value, and ... shall be maintained at a parity of value with this standard...
March 14, 1900


Bitcoin Gold Standard Act:


...the bitcoin consisting of ... (8,000 g) of gold...  shall be the standard unit of value, and ... shall be maintained at a parity of value with this standard...
March 14, 2020


 

 at the end its up to gold & bitcoin owners to exchange at these values, but if the exchange rate is fixed people will feel safer to exchange knowing that value will not fluctuate anytime soon.

I would like to note that the estimates of gold mined since the beginning of time varies wildly.

I don't think it's going to work simply because no entity could guarantee nor impose a fixed exchange rate for Bitcoin, because no entity is capable of issuing it. And even if it did work, I'm not sure it would be an entirely good idea. Gold standard was abandoned for a reason, and while it did and still does have advantages, its list of disadvantages is markedly longer. Also, while it's true that more and more people are expressing distrust towards central banks, the vast vast majority still trusts them. I don't think we'll ever revert to gold standard.

. I have read some articles about that, i cant recall where did I read it. But in order to match the gold reserve they said that BTC must be equal to 500k dollars so and 1 kg is roughly 36once and 36 once is roughly 40k dollars then multiply it by 8.
As we can see bitcoin can be more than this if it want to surpass bitcoins price.

Gold Standard: was a system used by most countries (until ~1970) to match the reserve of gold with the supply of currency, so anyone can replace the dollar for gold at a fixed exchange price. For example (for every $50,000 = 1 KG of gold).

Gold standard was ended because people agreed to trust the central bank fiat, so now that people don't trust central banks anymore.. the gold standard may come back, as it always been.

If somehow the gold standard is back, it is estimated that ~180,000,000 Kilograms of gold has ever been mined worldwide. Dividing the amount of gold by 21,000,000 Bitcoins will generate a fixed exchange rate of almost ~8 Kilograms of gold per bitcoin.

1 Bitcoin = ~8 KG Gold  ... possible?

Your thoughts?