Topic: Take a look at the future of Bitcoin from the gold standard system (Read 508 times)

The biggest problem now is that the current monetary system and financial system are fundamentally corrupt, unfair, and man-made manipulation and control. It is based on the exploitation of ordinary working people in the world. Therefore, whether to adopt the gold standard or not will not be able to fundamentally solve the fundamental problems existing in the current world financial system. Bitcoin fundamentally solves these problems. It has created a decentralized financial system that is not controlled by any single force. No force can tamper with or destroy the Bitcoin network. This produces absolute fairness and ultimate trust, and brings ultimate freedom to people who believe in Bitcoin.

Central banks expand the money supply. To bailout failing industry, investment firms, hedge funds, banks. Also to bailout failing and underfunded government programs.

The question is whether adopting a gold standard or cryptocurrency gold standard can prevent this vicious cycle of cause and effect.

The gold standard is often held up as a silver bullet, plug and play, solution to fixing every economic and financial issue society will ever face.

Consider the following. How would the 2008 economic crisis have gone with a gold standard in place. Would it have prevented the economic crisis which followed? The simple answer may be: no.

A gold standard is great for strengthening the purchasing power of consumers to offset rising taxes and cost of living. But it wouldn't prevent investment banks from gambling with leverage on subprime mortgage CDOs which is where our real economic problems usually stem from.

There are two reasons why your thoughts about bitcoin in the future will come true:

1. Adoption is increasing in many countries around the world.

• It is definitely something that looks very good when we know and monitor the flow of bitcoin adoption as a currency and a means of payment which is increasing day by day. Private companies, marketsplace, individuals and governments also support this adoption for the better. Acceleration of adoption may still be hampered by regulation from countries which have not been able to consider bitcoin as a currency or means of payment for various reasons and it is true that we still need many years to enjoy that adoption on a national and global scale.

2. The government is interested in issuing its own cryptocurrency

• I would consider this reasoning as a form of still gray support for the government's stance on bitcoin. In the long term, governments will no longer prohibit the use of bitcoin as a currency (perhaps yes/no) once their own crypto regulations are passed as legal tender. The user base is increasing, demand is increasing and regulation will shift by itself and soften so they will only think about regulating it without banning it.

The two points of thought above are thoughts that may not be useful when we still can't predict the future of bitcoin. While increased adoption looks supportive, anything can still happen in the future, so we really need to recognize that currency failures have happened before. Only optimism can convince us that bitcoin will be much more useful in the future as a store of value and legal tender.

The difference to the mechanisms I described in this post and QE is exactly that it is much less "elitist". Elites can benefit from it, of course, for example if a multi-billion company like PayPal "prints" PayPalBTC which are not backed by real BTC. But they can't exaggerate with that, because if there were >21 million PayPalBTC in existence anybody would smell something fishy and a bank run would happen.

But the mechanisms I described are decentralized. They give anybody the power to "print money", just as Satoshi already printed his own money with Bitcoin (I know, Bitcoiners do not like this analogy ). So why should you use an elitist Bitcoin-based "pseudo-stablecoin" like PayPalBTC if you can use a much more transparent stablecoin maintained by a decentralized open source project, for example? Bitshares' BitBTC is already an example where this could be heading, although the Bitshares project had some centralized elements. But at least it wasn't launched by the "bankers elite" (at least if I didn't miss something about Daniel Larimer ...).

The mechanisms are also very similar to alternative currencies which exist in many countries as tools for barter communities. They are also "printing money" in some way, but this "money" is often backed by the goods and services which are exchanged in these communities. And it's not an elitist "money printing" at all - at the contrary, it's often the poorer segments of a society who depend on these mechanisms.

First one makes sense, stable bitcoin is a very important part to actually provide a standard system like gold one. However the second one I am not sure about, the problem with QE and all the other horrible stuff that financial institutions did caused the world to be in such a financial disaster, plus all the horrible people who got sooooo rich that there are millions of poor people as well.

Bitcoin is not like that, it is decentralized and that matters a lot, which is why if bitcoin becomes like a gold standard, I hope that there is nothing that could make altcoins turn into "money printing machine" for the elites, that would basically be the thing that hurts us the most.

Thank you for the interesting information, but there are also other factors that may slightly outweigh the expectations of many about Bitcoin. The really old financial system is now in its last days, but to say that BTC will become the gold standard is at least premature. Why? The fact is that in addition to the digital space, which is now actively developing, there is also a reality that for some reason everyone is silent about. But in reality, things are a little different. Over the past few years, many countries have increased the production and purchase of real gold, and this is all for a reason. The fact is that right now we are witnessing the transition of the world from a bipolar to a multipolar system, where each, roughly speaking, will be for himself. And in this situation, there is a high probability of the appearance of new currency zones, and if so, then to support these currency zones, physical gold is accumulating. Yes, the world is likely to return to the gold standard. But the role of digital or cryptocurrencies is precisely that they should simply replace fiat currencies. Thus, a slightly different picture emerges, where there is a place for digital government currencies backed by physical gold. As for Bitcoin and cryptocurrencies, they are probably now playing the role of a catalyst for these changes and the transition to a new financial system, but also remain on the free market as neutral money. This is just my opinion and probably everything can go according to a different scenario.

Yes, this summary of yours is very good. This is a new world currency system that is entirely possible for us in the future to be Bitcoin-centric. In this Bitcoin system, the role of Bitcoin is not only the role of currency payment, but more importantly, the role of value storage. Humans store wealth and value in the form of Bitcoin. Only Bitcoin is the value carrier recognized by the people all over the world. Then use Bitcoin as the value anchor to build various derivative ecosystems.

I can imagine such a system, but only "with a twist".

The gold standard was based on the assumption that any central bank would hold enough gold to be able to exchange the currency to gold, on the established exchange rate. caryoskar already cited one of the shortcomings of this system: it is inflexible. This means that if you have a growing economy but the central bank can't expand its gold holdings for some reason, you will run into deflation, likely affecting the growth. And if the gold price has swings, this will affect your currency too.

A Bitcoin standard however could work if:

1) the liquidity of the Bitcoin markets is high enough that the Bitcoin price itself is relatively stable. This is easier than with gold, because in the case of gold there could be events (discovery of new gold ore) where the supply/demand curve gets out of balance. This cannot happen with Bitcoin; the only possible event is that an early miner like Satoshi could sell his coins all at once, but this danger is limited (once these coins are sold, they're better distributed, and it's likely that the price can re-stabilize fast).

2) there are enough ways to activate the economy without having to recur to the "money printing press" (QE and similar expansive mechanisms). This can be done with alternative currencies (altcoins and traditional alternative currencies, like the Swiss WIR franc), Bitcoin certificates and Bitcoin-based stablecoins as temporary "expansion" means outside of BItcoin itself, or through "direct economic collaboration" which can be facilitated through the internet; i.e. that in low liquidity phases people could directly exchange things and services according to the needs (demand) and the supply. The shortcomings of traditional bartering, which made it inefficient compared with "money-based exchange" can probably be solved with sophisticated platforms.

The second part is the "twist", it is maybe unorthodox because it would in some way expand the "monetary supply", but it would be a condition for the system to work well. It gives the economy always room to grow.

Well I think the volatility of bitcoin price is what makes the token unique and more valuable. It only shows a timely fluctuations whether the token is doing great or dropping. I think every investors and traders of bitcoin already used about the volatility of the market and they now know how to deal with the volatility. Some or many of us don't worry that much about the volatility of the coin today because we all know that the token is much more worth it, I mean bitcoin already proven as a great cryptocurrency to invest with in a long term investment and we all do have same perception about the future of bitcoin.

Most beginners are wrong to think Bitcoin can make them rich instantly, even though it requires a long process so that someone can generate
profits from Bitcoin on a regular basis. There are many things to learn in order to understand how the crypto world works, so it is very natural
that we find newbies experiencing failure when investing in Bitcoin. Finally some beginners who lose all their money when investing in Bitcoin
consider Bitcoin a scam. This is the importance of educating newbies, so they can understand how to properly invest in Bitcoin. Because after
all investing in Bitcoin is much more risky than investing in Gold. Only knowledgeable and experienced people can profit from the volatile Bitcoin price.

Yes, we can use the volatility of Bitcoin to make more profits. However, this is quite a test of the investment level and choice ability of every investor. Most novices lack professional investment knowledge and only rely on their own emotions to make investment judgments. When the price of bitcoin rose, they bought it, and when the price of bitcoin fell, they sold it again. In these constant and frequent operations, they lost most of their funds.

For me, the volatile Bitcoin price is not something to worry about, because if we can analyze the market well. We can use the volatile Bitcoin price
to generate profit by trading. There are already several articles on the internet that tell of the experience of getting rich from trading Bitcoin.
This means that Bitcoin does provide an opportunity for people to become rich, but it must be done in the right way. If we look at the successful
journey of Bitcoin for 12 years, then in the future I believe Bitcoin will provide more benefits.

Without the three shortcomings mentioned above, the gold standard is the right way. Imagine an ideal world. Its economic activities are sometimes hot and sometimes cold, and even change drastically. But the central bank in this world has a magic method. It can be best that every country’s central bank uses the same method and treats the same one. Gold mining, and the speed of gold mining remains the same. Naturally, all countries can use the same currency for transactions. I think the Bitcoin designed by Satoshi Nakamoto is to create this ideal world.

The answer is that Bitcoin uses the sophisticated design of the underlying technology of the blockchain to limit the output of Bitcoin to create scarcity, just like we dig rare gold to make money generate value.

Yes, the price of Bitcoin is now very volatile. However, because of the large price fluctuations, there are many opportunities to earn wealth. Many people realized the freedom of wealth in this process. Of course, it is inevitable that many people lose their wealth. Bitcoin has just been born for 12 years, and we must be patient with Bitcoin's future.

Bitcoin will definitely not be able to replace legal tender in a short period of time. But if we stretch the timeline, 50 years, or even 100 years? We are very likely to enter a currency system based on Bitcoin. Because ordinary people have liberated their minds, their wealth in legal currency will continue to shrink, and their wealth in Bitcoin will continue to appreciate. At that time, let you choose, how would you choose?

Bitcoin is very good but I can’t really imagine it that the world will come to a time that the value of fiat will be linked and determined by Bitcoin just like the fiat was linked to gold in those olden days. The way that I have always seen Bitcoin is totally different from that.

I kind of see it that Bitcoin is going to continue the way it is headed, and that’s by being the money of the internet and being used online by people, willingly, to make payments and as well receive payment from others. That’s how I think it’s going to be for Bitcoin, then we are still have going to have fiat as the currency that is representing every country like they are doing now. Bitcoin will always be powered by the community.

I really hope people can stop spewing lines they do not understand. When people referred to Bitcoin as digital gold, they did not call it virtual gold for one reason -- it is not gold, it only acts as a safe haven for some people,,, and it is digital. The differences are very attractive in that it is easily transportable,,, easily verifiable,,, easily liquid.

But the "weakness" is volatility. Price that changes from time to time? Have you even been looking at Bitcoin price charts?

Yes, Bitcoin has more unique advantages over gold. The government can pass laws to prohibit gold from becoming currency. But it is difficult for the government to prohibit the circulation of Bitcoin. Bitcoin will become a truly free currency. It cannot be controlled or banned.

We can't conclude that bitcoin is more preferable than Gold, because all the primary function's of cryptocurrency more especially bitcoin is also similar to functon of gold, besides check the existence difference between both, then you will notice that it's obvious that gold has been in existence for age's, so bitcoin is just thirteen (13) years old with much influential, we trade bitcoin and we also trade gold, we use bitcoin for exchange and we also do so with gold, so from my perspective their is no much different.

They are both better but has their own pros and cons. right now bitcoins surpass gold in terms of ROI if you invest at the right tie but if you only want to save your money with a little increase in your capital then you can go for the gold for high assurance of not getting the volatility that we have in holding bitcoins. Nevertheless, if you can afford to lose your capital, then there's no need to go for gold. You can always ride the roller coaster in the crypto market and sold all your BTC when the price is high enough from your expectation.