Topic: Bitcoin or gold? - page 138. (Read 984448 times)

If you had to convert all your wealth to either Bitcoin or gold and keep it there for 10 years, which would you choose? Keep in mind the fact that Bitcoin has only been around for 5 years, and could be fundamentally different in any number of ways in 10 years.

I doubt that from 1980 population increased 12 times or that it started to produce 6 times more tangible goods per capita. If the rate of gold production wouldn't grow at the same speed with the population growth, we would have to multiply the price of gold by more than 12, but since they are growing at virtually the same speed, $850x12 is quite an accurate number. Plus keep in mind, that the number of people who have access to trading PM on commodity exchanges today is far greater than it was in 1980, so the price of gold can rise even higher. Gold is more inert than silver, but you won't see water spoil in a gold pot, will you? It's seems that it's you who confuses the cost of production with the potential cost of a product, which depends totally on demand. Central bank hold about 1 billion troy ounces of gold available for sale (if there is much gold left in Fort Knox), and we, the people, hold around $150T in different financial assets (not taking into account the real estate), plus another $150T are hold by different institutions and organizations (private and government). So, if for some reason (be it panic or some sort of enlightenment) people decide to put 1/20th of that $300T into gold supposedly available for investment, its price will rise to $15K; and if in reality there is only half a billion of gold available for sale by central banks, it's price would go to $30K per troy ounce; and should people decide to convert 10% of their financial assets to gold, its price would rise to $60 000; and if another 10% would go to silver (as too far more available alternative), it's price would rise to at least $10 000, as there are around 3B troy ounces of silver theoretically available for investment (2B - in bullion coinage cut from the start of the bullion programs in 1980-s, 500M ounces hold by JP Morgan and another 500M hold by different silver investment pools).

Some folks strongly disagree with this attitude

If your point hinges on the possibility of quickly converting your bitcoins to fiat and then spending fiat for your daily needs (as another option, you could use a Bitcoin payment card, and in that case the conversion is done for you by someone else). Though, as I said, some people will certainly challenge that point by claiming they can easily sell their gold at market rates as fast. But if you don't mean that or anything to that tune, then I don't see how Bitcoin is more vital than gold for "our daily living"