I remember when 1 bitcoin was worth more then 1 ounce of gold crazy times.
just briefly. i remember sitting there watching Bitcoin ascend to meet gold. what a thrill. it was the culmination of 2.5 yrs of posting about it. if there was one thing that i could point to that capped the rally @1200 back in Dec it was Satoshi daring to touch the face of gold. traders immediately sold it off and took profits as the once considered impossible occurred. we've had a wicked retrace since then but i'm convinced the story is not over and that we will go back up and touch it again.
IIRC when bitcoin=gold ounce was the peak. Cypherdoc, do you think that confirms there is a strong relationship between gold and btc?
from a conceptual standpoint, Satoshi designed Bitcoin to be a digital form of gold. he talks about this in some of his earlier writings. he also used the term "mining" which is a direct reference to gold mining. his genesis block indicates a sophisticated understanding of fiat bailouts and the moral hazards related to such. the whole design of decentralization, key to Bitcoin's success, is an attempt to avoid gvt interference and censorship, something gold bugs have always been concerned about. Satoshi's insight came after many decades of various digital cash forerunners. the fixed supply of BTC is a fundamental concept behind sound money and a throwback to the days before we had central banks. when i first started studying about Bitcoin in Jan 2011, i saw the relationship immediately. my many years of gold and silver hoarding was critical to understanding what he had invented. so yes, i think there is a conceptual relationship btwn Bitcoin and gold designed from the beginning by Satoshi himself.
yes, i do think the fact that Bitcoin touched the gold price back in Dec is symbolic and will be retested.
your question really is, what is the price relationship going to be long term? i think it's going to be inverse. but only over the long term as we've seen since gold's top and Bitcoins low in 2011.
obviously, under most other shorter term time frames you won't see it b/c there is still considerable doubt and skepticism to the idea which causes plenty of divergences to the inverse relationship seen in the price data. having actually monitored the news and price flow closely in this arena since January 2011, i think i will be right in the long run despite the recent Bitcoin bearishness.
but it's also possible my judgment is clouded given my portfolio positioning. all i can do is continue to present my case here in the form of links, references, charts, graphs, statistics, theoretical arguments, etc, as i have done since
Gold: I Smell a Trap
