Author

Topic: Gold collapsing. Bitcoin UP. - page 1088. (Read 2032266 times)

legendary
Activity: 4760
Merit: 1283
July 11, 2014, 06:26:37 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with.

Me too.  I was preparing for a sale of some silver recently when the full impact of this hit me: man this stuff is heavy!  Moving forward, I see gold as a hedge against a security fault in bitcoin and something that central banks may cling to in a final effort to save fiat.  The concept of silver as money I now see as essentially pointless. 

I had a taxi drop me off at the bank with some silver once on the way back from the airport.  As soon as he left I remembered that my safe deposit box key was in my apartment some blocks away.  Shit!  I couldn't very well just leave the stuff on a park bench so I had to lug it all the way to my apartment to get my key then all the way back (my car being parked closer to the bank than to my apartment anyway and parking in the Bay area being a nightmare.)

Ya, Bitcoin has a variety of advantages.  Some of these, and this one in particular, were key to Bitcoin capturing my interest some years later.

To you point about 'money', I see it as the opposite.  Gold is fairly useless as 'money' because it is to valuable.  Junk silver is just about right.  I should point out that I don't see either as being useful as 'money' as long as the USD works fine, and it performs admirably as money at the moment.  If I had confidence in this state of affairs persisting in perpetuity I would not be terribly interest in gold, silver, or Bitcoin.

legendary
Activity: 2282
Merit: 1050
Monero Core Team
July 11, 2014, 05:49:34 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...

That's because gold as money/store of value wasn't outdated until bitcoin showed up.
You were right to laugh then, and you are right to feel this way now.

So true. Bitcoin was the unexpected "Black Swan."



Bitcoin is gold's Black Swan.

Sorta has a ring to it.

Precious metals have a huge weakness in that it is very expensive and difficult to take delivery. As a result holders and traders of PMs have for millennia relied on trusted third parties to 1) Guarantee the fineness of PMs and 2) Store and transport PMs. Over these same millennia these "trusted third parties" have engaged in their own shenanigans from the debasement of the Denarius during the Roman Empire to fractional reserve banking by the Rothschilds to the conspiracy theories surrounding the German gold at the Federal Reserve Bank of New York. It is these critical flaws with PMs that led to the rise of fiat currencies.

Bitcoin solves these critical flaws with PMs by eliminating the need for these "trusted third parties" and their shenanigans.
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 05:27:10 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...

That's because gold as money/store of value wasn't outdated until bitcoin showed up.
You were right to laugh then, and you are right to feel this way now.

So true. Bitcoin was the unexpected "Black Swan."



Bitcoin is gold's Black Swan.

Sorta has a ring to it.
hero member
Activity: 836
Merit: 1007
"How do you eat an elephant? One bit at a time..."
July 11, 2014, 04:03:34 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...

That's because gold as money/store of value wasn't outdated until bitcoin showed up.
You were right to laugh then, and you are right to feel this way now.

So true. Bitcoin was the unexpected "Black Swan."

legendary
Activity: 1246
Merit: 1010
July 11, 2014, 02:46:00 PM
This is a great article on the economic prospects and mass psychology behind the success of Uber. Much of this applies to bitcoin.

http://abovethecrowd.com/2014/07/11/how-to-miss-by-a-mile-an-alternative-look-at-ubers-potential-market-size/

The article mentions accuracy vs. precision, but is too kind.  This is a very common failing of economists -- formally they know better but in practice if they put a lot of work into a model they forget that it can be no more accurate than its input.

Engineers have a saying "garbage in -> garbage out"

legendary
Activity: 1764
Merit: 1002
July 11, 2014, 02:09:10 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with.

Me too.  I was preparing for a sale of some silver recently when the full impact of this hit me: man this stuff is heavy!  Moving forward, I see gold as a hedge against a security fault in bitcoin and something that central banks may cling to in a final effort to save fiat.  The concept of silver as money I now see as essentially pointless. 

queue heavy man pic

legendary
Activity: 1162
Merit: 1007
July 11, 2014, 02:00:58 PM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with.

Me too.  I was preparing for a sale of some silver recently when the full impact of this hit me: man this stuff is heavy!  Moving forward, I see gold as a hedge against a security fault in bitcoin and something that central banks may cling to in a final effort to save fiat.  The concept of silver as money I now see as essentially pointless. 
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 12:21:03 PM
Good tool:

If you use http://mempool.info/pools to look at the hash distribution you can use the following syntax to specify how many blocks to include:

http://mempool.info/poolrange/144

that is cool
legendary
Activity: 817
Merit: 1000
July 11, 2014, 12:14:51 PM
Good tool:

If you use http://mempool.info/pools to look at the hash distribution you can use the following syntax to specify how many blocks to include:

http://mempool.info/poolrange/144
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 11:59:01 AM
The emigration out of gold continues:

Considering the similarities between gold and Bitcoin, many expect Bitcoin and other cryptocurrencies to take some of the market share of gold and other precious metals due to its superiority in ease of transport and a more convenient means of transfer. This new rush of gold companies into Bitcoin seems to validate these views."


http://www.cryptocoinsnews.com/news/gold-companies-rushing-bitcoin/2014/07/11
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 11:23:57 AM
We need to prove this dude wrong:

"Inexorable consolidation will make the big banks even bigger. Economies of scale and the boundary-less nature of electronic technology will doom most small institutions."

http://www.moneynews.com/Economy/Gorman-bigger-banks-consumers/2014/07/10/id/581928/
legendary
Activity: 817
Merit: 1000
July 11, 2014, 11:14:42 AM
I'll feel much better when I see that p2pool pie slice look like ghash's.
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 10:48:16 AM
Ghash still down:



Everything is ok now that they are pointing their miners at other pools!

well that's the thing.

It's the open source ethos. Transparency and accountability.

You gotta be an optimist at some point in your life.
legendary
Activity: 817
Merit: 1000
July 11, 2014, 10:40:26 AM
Ghash still down:



Everything is ok now that they are pointing their miners at other pools!
legendary
Activity: 1638
Merit: 1001
₪``Campaign Manager´´₪
July 11, 2014, 09:46:09 AM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...

That's because gold as money/store of value wasn't outdated until bitcoin showed up.
You were right to laugh then, and you are right to feel this way now.
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 09:37:49 AM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...




For me it is helpful to break the problem into 2 possibilities:

1. Satoshi achieved perfect security with the pow block chain. If he did, then there is no question that bitcoin is a more efficient form of money. And if it is then gold should return to its industrial value of 250 at the most and bitcoin goes to the moon.

2.  If he didn't achieve that security, then you're left weighing risk benefit ratios to bitcoin. In this scenario, it is still worth it to me to slant my portfolio more heavily to bitcoin versus gold because gold already had its run to its peak, imo. And this is what I've done, just way more heavily than most.
legendary
Activity: 1764
Merit: 1002
July 11, 2014, 09:08:56 AM
Ghash still down:

hero member
Activity: 836
Merit: 1007
"How do you eat an elephant? One bit at a time..."
July 11, 2014, 09:06:50 AM
Funny how I used to laugh at those people who called gold the "barbarous relic" but since I've discovered Bitcoin I'm beginning to feel the same way. As a former precious metals dealer I appreciate how Bitcoin is so darn easy to use and precious metals are such a chore to deal with. I'm excited to see what the future will continue to bring. Maybe Open Transactions anonymous digital cash secured by bitcoin? Now that would be cool...


legendary
Activity: 1764
Merit: 1002
July 11, 2014, 01:32:37 AM
This is a great article on the economic prospects and mass psychology behind the success of Uber. Much of this applies to bitcoin.

http://abovethecrowd.com/2014/07/11/how-to-miss-by-a-mile-an-alternative-look-at-ubers-potential-market-size/
donator
Activity: 2772
Merit: 1019
July 11, 2014, 12:24:39 AM
I wonder where we will be in a year from now.  Roll Eyes

I have a picture of where we'll be, but wonder long it will take to get there.
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