Topic: The History of Gold and Silver Points to the future of Cryptocurrency - page 3. (Read 835 times)

Not certain about the economics of it but it seems that people are always willing to buy and store precious metals. It's definitely a good measure in countries where the government demonetizes their currency. Of course demonetization is even less of a problem for bitcoins.


I thought the cyclical collapse was intentional?  Isn't it the time when they get to snag cheap assets?

A lot of people talk about reverting to the gold standard or whatnot. I say that it is intrinsically flawed.

Why? Because you are relying on a central bank to keep enough reserves (certainly not full reserve) of a precious metal so that the bearer can actually redeem their notes on demand. That in itself has never been fulfilled as demonstrated by the debasement of currency under the gold standard time and time again.

After all, it's just a promissory note that the central bank is issuing under the gold standard. Not gold itself. Even though technically they are bound to pay you in gold/silver, but can you redeem a silver certificate of the past for actual silver now? Obviously not.

With bitcoin you don't need this central organization to keep their reserves, and issue gold/silver certificates that acts as currency. BTC is already on chain and can be transacted with, with ease. There is no worries about fractional reserve, no worries about changing policies. None of that.

It is your thinking gold is not like bitcoin, according to me gold is much low in value as compare to bitcoin, silver is good but it is less in value of gold and gold is less in value of bitcoin, crypto currency has better future as more investors are investing only in bitcoin not in gold or silver, we should try to accept the reality of time and invest in best investment which is bitcoin,

You're dead wrong - like gold bitcoin is mined. It is scarce with mild inflation, and in practice deflationary. It is thus a store of value like gold. Hence, bitcoin is digital gold.

It seems to me that the history of the use of gold and silver by mankind is in no way connected with the history of the development of cryptocurrency, and even more so with its future. Still, these are completely different and incomparable things, and in most factors being compared, they are just the opposite.
Gold and silver will always remain precious metals, and what will happen to the value of Bitcoin, we can not say for sure yet. The statement that its price. will constantly grow, is unlikely to be true. In practice, this will not happen.

I agree with the point that bitcoin is like gold and silver, i reffer here to limited supply and high demand for bitcoin, and this can make the price grow in future, possible always the price will grow before or after halving.

And what about if there is a "control" on the crypto industry by banks/governments/institutions? It will be a point of failure we will have to admit, right? Then, I am sorry to tell you but it's already happening. Step by step. Today they start with regulations, it's like controlling. In 10 years a collection of regulations will give great power. And people are accepting that! Totally the opposite of what Satoshi intended to create. Too bad!

I like the old adage that says "the only permanent things is change" which holds true for humans specifically on how we conduct payment processes since the idea of gold and silver being used as a wealth of value and in turn as a payment vehicle in early years of human civilization prove inadequate to met the rising needs of humans to conduct efficient transfer of value between entities, hence the creation of fiat currency and emergence of banking institutions. But now, we all know that fiat together with financial institutions have certain limitations which could not be mitigated and thus spun the birth of Bitcoin and other cryptocurrencies. In a matter of years, I think there will be a global evolution on the massive adoption of cryptocurrency.

Right from inception the bank, the government and all the elite have design the world economy in the way that it will favor only them and the system have always been like that, but thank God for the coming of bitcoin and cryptocurrency that have given the ordinary citizens the right over they own financial love life without the control of any third party.

I think it looks unlikely that any big or powerful entity will release its own cryptocurrency in the short to medium term.  It might use blockchains for new settlement networks, etc., but that would just be additional infrastructure for dollars, euro, bank debt, etc.

The reason is that most of the public still don't trust cryptos as a store of value (just look at the price swings!)  If the elites want to promote cryptos (which I think the very top monetary elites secretly do, ultimately as a way to inflate away the debts in the system) they must make an alliance with libertarian-minded state-free-money fans who like cryptos, and allow or make 'state-free' cryptos to appreciate, at least until cryptos are established as a true asset in the public imagination.

You notice how Bitcoin is always the dominant crypto, despite all the 'competition.'  I think the reason is that, if Bitcoin is destroyed, the entire crypto space is in danger, because people can see that no crypto-type asset is safe from destruction.  It would be in the interest of these elites to preserve Bitcoin's dominant position.  Trust me, everything is manipulated, there is no such thing as a free market in money.

So, never mind something like the IMF, even something like Facebook won't release its own crypto any time soon.  I'm sure Mark Zuckerberg would love to have the wealth from issuing FacebookCoin.  But think of the effects on the whole crypto-space.  FacebookCoin would shoot up, because of the power and influence of Facebook, but everyone would see how the space can easily be dominated by big players, and is not really safe from the elites.  So Zuckerberg can't be allowed to do it.  (And I do think the elites at that level are a lot more organized than we know.  What are the odds that Facebook took down the page of the pro-Assange former Ecuadorean president the day of his arrest?)

If we look at this in a layered way. 

1st preference for state is to issue purely their own debt notes.   Tied to no value but their word
2nd preference will be gold and silver because every country of the world has a gold resource in their borders, some places are better off but overall its obtainable by most directly or in exchange
3rd and least popular to governments I think is this totally independent blockchain they do not mine it themselves and some of the network will be foreigners.    To use a 3rd party network as your national currency is extreme unlikely

The IMF have proposed releasing a global crypto standard that will be tied to each country via politics and again this likely is under their country not independent.  This event is more likely then 3rd party use

Yes, it is defined like this. Gold has long been tested by time. We do not yet know how long a cryptocurrency will exist. It will take a lot more time for the cryptocurrency to find its permanent niche in our society. In the meantime, gold will exist as a constant, stable value, unlike cryptocurrency with its simply explosive volatility.

Bitcoin is somewhat similar to gold, because it is like the precious metal is only in limited quantities.
Gold mined around the world today is about 171 thousand tons and it is not so easy to print as dollars or any other bill.
Therefore, if in the near future the world begins to regulate bitcoin, it will only grow in price like gold every year. (although until now the price has been rising for 10 years)

Bitcoin/Altcoins, Gold/Silver may not replace the state currencies but they can co-exist together and/or be complementary to each other. We don't even need a collapse to see it happens, it's up to the population to decides to use it like this, we don't have to wait for a central bank or another institution. In the opposite, they will have to adapt to the new trend

Comparatively gold is better than Bitcoin but we cannot compare these things equally because these hard different qualities to make our profit. stable if we invest in Gold it will give the less amount of profit for long time but cryptocurrencies are different from the gold in cosmetic it will give quick investment and quick profit at any point of time

I agree, probably neither Bitcoin nor gold and silver will replace state currency, except, perhaps, in an unlikely but possible scenario of total collapse of trust in certain institutions.

But back to reality... the real issue is the exchange rate between different monies, not what narrative is currently being promoted by the elites and their economists.  Remember, when gold was declared the only true money by the establishment, it earned zero return.  When it was declared a barbarous relic after 1971, it appreciated 30-fold.

The key thing to remember is that reality is almost always different from the official 'story,' as the system is basically deceptive.

No matter what the official story, one effective way of viewing the system is that, whatever you call it, 'depreciation' of state currency against 'hard' monies will be a long term trend, since there are fundamentally built-in incentives for the elites to abuse their control of state currency.

I honestly think no "public" money, will be deemed suitable for any government, simply because it is not controlled by them. People who think that Bitcoin would replace fiat currencies as reserve currencies are truly delusional and this is coming from someone that are very passionate about Bitcoin.

We have to be realistic and know that Bitcoin will always serve the purpose as being the alternative currency to fiat currencies, because it was created for that purpose and not to replace fiat currencies.     

I do believe even if asteroid mining becomes viable, it wont affect gold price too much. Gold is still gold which is still one of the most favorite asset to invest by most people in this world. It will not be easy to change people's interest from something to a new thing.

I wouldn't say gold will always hold a good value, what if asteroid mining becomes viable in the future?  The price of gold and other precious metals may plummet as the market gets flooded.

Thanks, these are good points too!  The architecture of money that I envision is:  (and BTW this includes 'fiat money', which IMO is in reality a flexible gold standard, if we define the gold standard by its true nature which is the suppression of gold prices to support the issuance of paper money and debt by the elites.  Books like 'Gold Wars' and 'The Gold Cartel' have exposed serious evidence of the elites' use of derivatives to suppress gold and silver under the 'fiat' system.)

At the base level, you have hard money like physical gold and Bitcoin which are trustless, anonymous and fungible (and maybe Bitcoin is more convenient than gold, but remember Bitcoin is just code and data, where unlimited new altcoins can be created.)

Above that level, there is central bank money.  Central banks of core countries are wise enough not to abuse their power to issue this money too obviously.  This issuance is, in reality and over the long term, dependent on the amount of hard money each central bank holds, one way or another.

Above that level, there is debt (or equivalent) issued by major governments and institutions like commercial banks, big corporations and pension funds.  The elites in core countries are eager to protect the trust in this 'money' too, but this is not as important as central bank money.

And very roughly speaking, above that level, there all sorts of 'stores of value' which are outer-ring financial assets like stocks, lesser corporate bonds, real estate, etc.  These are the least safe, especially at times like these.  The elites will protect these when possible, and abandon them when necessary, especially if the crash can be blamed on reasons that don't trace back to the nature of their system, in public opinion.  The system tries to portray gold and Bitcoin as being among these assets, when in reality they are different beasts all together.

The outer layers around Bitcoin have not yet been built, and I don't think they will look superficially like those around gold, but they will, and will work essentially the same as those around gold, even though they might be advertised as something totally different in the story for the public.

For example, when it's time to reduce the money supply to control the dollar price of Bitcoin, it won't be the old story that 'we have to live up to our moral responsibility to redeem dollars for the same amount of gold, since only gold is real money.'  It will be something like 'Bitcoin prices rising is a sign the public is losing faith in the dollar, and this is followed by disastrous financial crashes, so we must reduce the money supply to restore faith in the dollar.'

In reality, whichever story is used, comes out to be the same thing.