Topic: The History of Gold and Silver Points to the future of Cryptocurrency - page 2. (Read 889 times)

both will always be side by side, bitcoin will not be valuable if it cannot be converted to fiat, so also gold without fiat gold will not have very valuable value.

Therefore, before creating this digital currency, Satoshi certainly had his own idea that bitcoin would not replace Fiat but would make it easier for users to make alternative payment transactions using Bitcoin through the internet

But why did the elites start gold/silver standards all over the world, again and again, even after many failures?  Because it was stable at first.  There was enough gold to back the paper, at first.  So the elites could benefit from issuing paper, at first.  The key variables were the exchange rate between paper and gold or silver, and how much precious metal reserves are held by the elites.  The elites wanted gold/silver standards because it benefited them.  At a high enough price of gold, a gold standard can always be stable, at first.  (Are we starting to get an idea how a new 'Bitcoin standard' might work now?)

What you're saying is that the public story about the gold standard will be different from the public story about the coming system based on cryptos.  I would agree.  But I would add that the true nature of the two systems will basically be the same.  Public stories are fundamentally deceptive, when it comes to the money system.

Uuhm...whatever, it still doesn't change the fact that fiat (current monetary system) will still remaining what it is, nothing is going to change that. Gold and the rest of them, including bitcoin, are all assets/stocks, that's why you should always invest in them to make money as things continue to turn out like this.

You don't need anyone to tell you what to do, just find somewhere to save your worth, so that no matter what happens to the fiat, you will still be growing and even make more money.

You gave a very good explanation and I think this is the kind of article we need in this forum, and not a bunch of people coming on the forum to spam it with topics that are not relevant to anyone, people are already seeing bitcoin as the digital gold we have in existence, a lot of gold holders are already splitting their asset and investing them into bitcoin because they know what is coming to us won't be funny if you don't have possession of the digital gold.

So you just want to inflate their price disregarding it's a value? Imagine prices for electronics, medical and scientific equipment and so on when precious metals skyrocket. It will only increase the gap between rich and poor.

Some of the Muslim banks avoid debt which is against their religious code by issuance of Palladium bars at set prices agreed between customer and bank.   So its an agreement but without debt with profit for the bank in that agreement and of course the customer gains use of value they would not have otherwise.
So thats a kind of currency use without resort to FIAT leverage or legally relying on the status given by government.  I'm sure its with the knowledge of government but not exactly a new currency, more of an old one

The use of gold or any of these alternatives to the dollar debt system as actually currency and stored as reserve asset would monetise and change the price for BTC or gold or anything.  It would all have to readjust, its hard to predict by saying the pricing now or even the supply, if gold is used more the supply will rise as certain deposits of gold become profitable to mine

@South Park

A bank can't issue a currency that has no legal status by a government. At best, they can only create a token or a point system that has no real value. Something like 100 token=$1=1 month free banking
BTC would need approval first from the government before banks start to jump in.

If we are not careful banks and governments can eventually do the same that they did to gold, under the excuse that they are better at protecting your coins than you are, and that will be true for the majority of people, they will create bitcoin banks where people can hold their bitcoins and then they will create a currency above it and when they eventually control most of the bitcoin of the world they will begin to print that currency as much as they want once again.

What are you talking about? Did you ever look at BTC whitepaper? It describes different and very specific practical goals.

People moved away from using gold as a basis because it became pointless, and you want to move back?
It is better to focus on new ways of economic interactions which could be done only via crypto, instead just adding "blockchain" and "BTC" everywhere you could. Nothing will change in the world economy if you keep threat new, potentially revolutionary things, the same way as old one.

Absolutely there is no doubt about this, Bitcoin will eventually become our digital gold in the nearest future, but fiat still has a great role to play in this industry. For now, until government dealers another mean as legal tender, there is no gold without fiat and there is no Bitcoin too without fiat.

For everyone to get gold, fiat must have exchanged hands while this is also applicable to Bitcoin too, that is why satoshi never created crypto to compete with fiat but rather serve as an alternative payment tool to fiat, so there is no competition here, bitcoin is just a way to simplify the difficulty fiat has brought to its user as regard payment.

USA GDP in the fourth quarter of 2018 $20 870 000 000 000
https://www.bea.gov/news/2019/initial-gross-domestic-product-4th-quarter-and-annual-2018

BTC market cap: $92 612 555 685
https://coinmarketcap.com/

Gold supply around 190 040 tonnes, with price  41 035 600 USD per tonne
https://www.gold.org/about-gold/gold-supply/gold-mining/how-much-gold
Which will give us 190 040 * 41 035 600 and it will be roughly $7 798 405 425 000

So
20 870 000 000 000
 -7 798 405 425 000
      -92 612 555 685

So we find just another 12 trillions and we could move on and find the money for the rest of the world.

for now it seems like that, in fiat only can be arranged by a number of countries, they like to easily do that. but this will be different in crypto where we are free to create without someone managing, and in the future I think it will have a level of trust like gold

There is only really one thing backing FIAT Currency and it is a big thing, but it is the national borders and ability to demand taxes within that country.   To operate FIAT you first must have an economy of sorts and the control of trade between that country and others.   Ideally the country must have alot of trade to take place with others, in both directions or the FIAT will be very weak and not in demand if the imports are too many and the exports too few.

The present scenario and upset we have ongoing in the world in regard to FIAT is that debt is in operation.   The trade between countries is not balanced properly and there is a political bias in the system away from plain trade.   Partly military bias and partly just agreement of many countries to support the ongoing hegemony partly out of fear of Russia and other communist states and the threat of ww3

SO we have open trade not always respected, 'value' attributed from other factors.   There is too much debt accumulated and stored in hope of value delivered in future which may or may not occur.   Without trade done, FIAT does not have value and only in a profitable economy can taxes be demanded and the worth of FIAT to pay those taxes gives it value.   Its very possible for a failed economy to lead to failed value of FIAT and no demand and no longer any usage for that currency.    

The development is different for Bitcoin and comparing two gold and silver so we cannot say this is the right way in this situation if it was good enough there is some attention will be created between the investment that is the development needed to invest in cryptocurrency.

Fiat is the measurement to value the product but the product is the matter for this fiat money. Hope you do not know the old culture and current financial politics from USA. If you know about these two things alone means you will not say like this.
I really feel pathetic on your understanding. If the gold decides the market also people will be happy not want to be slave in the name of USD. world worst and crazy money.

Fiat to me is the bridge between material and financial valuation. Fiat create value to our access. In other words, even bitcoin, gold, silver and other materials and mineral resources have their value in fiat.

I like with the word co-exist, and yeah, that is what bitcoin, gold, and fiat can do to solve the finances problem in all countries. Maybe it's hard to explain to the people but once people understand the purpose, I think they can accept that bitcoin, gold, and fiat can work together to solve every problem that might happen in the future. We will see a new world if that is happening because we are backup by three things that could help people to solve their problem too.

Gold and silver are both good for a long term hold because they never lose their value and it even increases in time. We won't have any doubts about the value of it because it is rising continuously. It's something that we could have and hold physically. While cryptocurrency is something that we could not hold physically but grows eventually. It's something that we should look over because of its volatility and unstability.

Gold and silver has probably 3000+ year old history, I know the speed we live in is much faster nowadays and now we are building rockets that go to space and than come back in one peace and all that but still how could you think that something that has a 3000+ year old life span could be compared to crypto that has a bit over 10 years now ?

It certainly could go that way but something that started out in 2008 can't be really following the same path of gold or silver, it has to have much different trajectory to actually be part of the speed we live in as well. It can be on the same road but it has to cover that road much faster, I am sure gold usage for purchases didn't became something millions of people used in under 10 years but bitcoin did, so even if the path is same (which I doubt) bitcoin needs to run that road not walk it.

Satoshi knew that fiat was a bullsh*t system which is why he created bitcoin in the first place. Gold is the only true store of value, and bitcoin is digital gold. No idea what fiat is..