Topic: Bitcoin or Gold? What would you pick? - page 159. (Read 299008 times)

If the gold mines are being shut down, this would inevitably drive the price higher since the supply of new gold dries up. In this respect gold looks very much like Bitcoin. Some part of it is hoarded and will never return to circulation.

Very doubtful, more likely that the peasants pick up the tab as has always happened throughout history with every fiat collapse.

Central banks will never liquidate their hard earned gold in order to give another few years life to the fairground and its paper ticket tokens. The central banks are very crafty beasts, been playing this game for many years and love their gold oh so very much.

Nowadays (after 1970) the banks drive gold price down by issuing derivative certificates, the real gold stays safely locked up (or maybe even safely squirreled away to unknown places, that's why Ron Paul was demanding Fort Knox audit.):

http://www.gata.org/node/13644

Remember central banks (like the FED) are private companies with no obligation to the governement. The relationship between government and FED is similar to the relationship between a citizen and a high street bank, the citizen decides nothing, wheras the bank always has the citizens balls in an ever tightening sling.

More likely is that during a collapse another new asset backed currency is formed and all users can exchange old for new, taking a large haircut as they do of course.

Gold may be used to form a new Bretton Woods like system, so all peasants take a LARGE haircut and we rewind the clock 80 years only to take the same ride again.

Gold is too bulky to transact in small amounts and you never pay a shop like that for anything small.   Gold is used to pay though, in Vietnam they buy houses with bars as the price in fiat would change so much they'd never agree in time.

Its like that tale in Germany, they sold all they had for cash but by the time they got to the ferry the cash had dropped in value and tickets costs too much.
  So gold could be useful or will be even for that and bitcoin even if you do not like or respect it is fast and easy to carry so they pay instantly for the tickets which arguably makes BTC superior to gold for even local transactions



Even more realistic is fort knox being liquated.   Im never that interested in wild theories but just set this out on a scale, we got 17 trillion of debt and we got a country which imports most of its good even many normal essentials (bundy ranch was a good example of over-regulation throttling business ironically to the point of extinction) so what will they do in desperate times after acting so badly now
Politicians arent known for their steely nerves and strong backbone, seems obvious to me they will dump fort knox reseves if or when prices rises dramatically as a collapsing dollar occurs.

That might half the gold price.   I'm still waiting for half of 2011 peak to occur now and then I can safely be bullish on gold again as no doubt the sheep will bleat about how it never keeps its value  

True. But given the volume of merchant transactions compared to bitcoin's market cap, people tend to be using it more as an investment than as a means of exchange.

What you are referring to here is called a means of exchange ("I can't just go to different websites and select "pay with gold").

Bitcoin has more use than just a storage of value. I can't just go to different websites and select "pay with gold". Bitcoin has a dual role in that sense. I love it.

Of course gold price can fall down below its cost of production. Mines would shut down then.
Similarly, bitcoin prices can fall down below the cost of electricity consumed. 

Bitcoin and then I'd sell some part of it for Gold to diversify!

How come? Gold price wouldn't fall down below its cost of production, so the only way Bitcoin could be a threat to gold is when gold bugs would transform to Bitcoin butterflies (I preserve all rights on this new mem), which is hardly possible.

Bitcoin could be a bigger threat to gold than to USD.

The reasons for gold surging in price are almost the same as for Bitcoin (e.g. dollar crashing). The reasons for collapsing may differ though. In fact, only a gold asteroid could derail gold prices now.

Bitcoin is still a baby compared to Gold. Plenty of things can still go wrong. At this time for long term savings I would put most of my money into Silver and a little Gold any day. Of course I would still hold on to a few Bitcoins in case it really takes off to $1,000,000 a coin like many on here seem to think is possible  lol.

Gold is more stable --> Your upside is also limited if you invest in gold, compared to BTC.

There is a saying: easy come easy go. So don't get fooled by the growth Bitcoin is presently enjoying. It may fall down even faster than it grew up, but gold has been there for millenia without loosing its glamor and attractiveness.

It would have to be bitcoin without a second thought. Bitcoins are newer and are growing more and more now since they were established which means I would more than likely be better off with bitcoins that I would gold.

A Golden Bitcoin

Bitcoin for sure right now. Newer, growing faster with better projections.

Gold is not banned, but if you decide to buy gold bullions officially, that is in a bank, you would have to pay a value added tax (18%), which is not returned even if you later decide to sell the same bullion to the same bank. Bitcoin, on the other hand, will most probably be made illegal in Russia to mine and transact in as early as from the beginning of the next year under the threat of criminal prosecution.

gold is banned?

So are a lot of other things.
Doesn't mean that it is not used.