BTC Parity with Gold? | Bitcointalksearch.org

bitfocus

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Quote from: pixie85 on December 16, 2018, 11:07:17 AM

You're saying that gold is better because it has uses as a metal. Is that gold's only advantage? I know some features of bitcoin that gold doesn't have and will never have.
Bitcoin is a means of exchange and can be used like a normal currency.
It can be used for cheap and instant transfers around the world, which is impossible in the banking system.
It can be stored in your pocket, no matter how many coins you'll have.
It's easy to divide.
Has a known supply. Gold's supply is limited, but we don't know how much of it is in the ground.

squatter

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Quote from: HopeHK on December 16, 2018, 08:00:26 AM

It could be argued that gold is priced somewhat arbitrarily, based on market demand as a store of value -- exactly like BTC. However gold is a physical product and has real-world uses as an element.

With all that taken into account, will the market drive them to general parity? Like the Euro/Dollar?

Parity is impossible between Bitcoin and gold because they're not measurable against one another. We measure gold by weight (troy ounces). In raw transactions, we measure bitcoins by satoshis (0.00000001 BTC). If 1 BTC = 1 troy ounce of gold, there's no element of parity. It's just an arbitrary comparison. We also have no idea what the total supply of gold is, so we can't compare parity as a measure of purchasing power vs. total supply.

This is like asking if beer and cannabis will be driven to parity because they're both consumable goods.

magneto

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Quote from: HopeHK on December 16, 2018, 08:00:26 AM

It could be argued that gold is priced somewhat arbitrarily, based on market demand as a store of value -- exactly like BTC. However gold is a physical product and has real-world uses as an element.

With all that taken into account, will the market drive them to general parity? Like the Euro/Dollar?

Just because that gold may perform similar monetary functions when compared to bitcoin, at least from a store of value standpoint, doesn't mean that their values or market caps should necessarily be on par with each other.

That makes no sense. It's like saying that the US Dollar should be on par with the Euro, just because they are both fiat currencies.

You need to take into consideration the fact that value is solely determined by supply and demand, and that right now, demand for gold as a form of investment vehicle and safe haven asset due to its decentralised supply, and people's trust in its historical inflation hedging properties is still a lot higher on a macro level worldwide, leading to its market cap being much higher than BTC. However, I could see bitcoin taking a large share of the gold market cap in the future due to the fact that it is just so much more portable, and divisible, while retaining the same monetary integrity and decentralisation, which is what makes gold such a good long term hedge against fiat depreciation.

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Quote from: HopeHK on December 16, 2018, 08:00:26 AM

It could be argued that gold is priced somewhat arbitrarily, based on market demand as a store of value -- exactly like BTC. However gold is a physical product and has real-world uses as an element.

With all that taken into account, will the market drive them to general parity? Like the Euro/Dollar?

The physical existence of the gold is not an proof that it matches with the same value as Bitcoin. Between gold and Bitcoin have big difference. Gold is a metal that has been valued by people for years, but Bitcoin is a new currency and has a power to determine our future. BTC is currently the best tool to measure any asset value.

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It all depends on your idea of what 'real world uses' are. Bitcoin is a virtual currency, but has real world uses' and applications. Just the same way we are moving into a cashless society but yet Fiat still has real world uses.

Bitcoin parity with gold can not easily be calculated, considering that BTC is infinitely divisible, and not measured same way as gold.

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Quote from: HopeHK on December 16, 2018, 08:00:26 AM

It could be argued that gold is priced somewhat arbitrarily, based on market demand as a store of value -- exactly like BTC. However gold is a physical product and has real-world uses as an element.

With all that taken into account, will the market drive them to general parity? Like the Euro/Dollar?

This is imo will be a great effect for the whole crypto community as well. There are a few of the crypto projects that also wanna have a token that is paired with the value of gold and other precious minerals and elements. I say one of the factors that will have an impact to this economy if we have like a parity to the popular commodities.

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What you say makes no difference with the physical meaning of gold and the non-physical meaning of bitcoin!.
Gold can't be worth that kind of money just because it's physically tangible... I can say the same about a piece of iron or a stone, but they do not cost so much money and people do not keep their savings in them.
Bitcoin is today already formed monetary unit with which you can easily pay for anything. His problem so far is that bitcoin is too volatile because of its youth. Time will pass and you will bite your elbows with regret that you have not bought bitcoin before.

BrewMaster

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gold and bitcoin have not much in common to reach any kind of parity. you might as well compare price of thousand satoshis with a course of meal and say they reached parity Cheesy

if this was hundreds of years ago where gold was also being used as a currency then you might have compared it with bitcoin but gold has lost that usage. not to mention that bitcoin is a global currency which is fast. you can't compete with that with gold.

bellamente

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I think there is no interconnection here.

The problem of bitcoin is in a small crypto community, in the future the crypto market stabilizes and the volatility disappears

pixie85

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You're saying that gold is better because it has uses as a metal. Is that gold's only advantage? I know some features of bitcoin that gold doesn't have and will never have.
Bitcoin is a means of exchange and can be used like a normal currency.
It can be used for cheap and instant transfers around the world, which is impossible in the banking system.
It can be stored in your pocket, no matter how many coins you'll have.
It's easy to divide.
Has a known supply. Gold's supply is limited, but we don't know how much of it is in the ground.

HopeHK

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It could be argued that gold is priced somewhat arbitrarily, based on market demand as a store of value -- exactly like BTC. However gold is a physical product and has real-world uses as an element.

With all that taken into account, will the market drive them to general parity? Like the Euro/Dollar?

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