Topic: The impact Blockchain has on Gold Investment (Read 204 times)

Gold backed cryptos doesnt mean that its safe to invest as anything can still happen.

FIAT's has its standards that give him a real value. Those additional steps can represent a fake version of of a valuable currency.
It's the same thing with some major [called] stable coins who are announced that they are backed by usd. None has the ability to prove that this is real and we can rely on it. Especially that those coins, like gold backed tokens are are created by exchanges (centralised company). Who can tie between the token and the source of its value?

Gold backed cryptos are inherently flawed because there is no sure way to tie ownership of the physical coin to the digital ownership. It is just another version of fiat with additional steps.

This article isn't really talking about how Blockchain impacted Gold Investment but rather talks about how it created gold-backed stablecoins. Gold as an investment never had changed and has proven that it can be stable during rough times it also has proven that it can be a store of value however I cannot say the same thing for gold-backed cryptocurrencies, yes they may be backed by real gold but the problem arising from the ones holding the gold reserve has the potential to really destroy the said Gold stablecoin. Other than that why would they want a digital version of Gold if they can buy it directly in stores or trade it in metal markets online as well? If this Gold stablecoins have nothing new to add in I don't think it will have any further success to where it is now.

right now Bitcoin has a low-level safe-haven nickname because investors trust the dollar is better ,  fluctuations in the value of bitcoin, make investors afraid to exchange their money for bitcoin, therefore dollar is considered better than bitcoin, and the dollar is known in the world as the best "safe-haven" when the country economic crisis

bitcoin is basically created as a place for  do freedom of transactions without a third party

Precious metals and cryptocurrency have a lot of economic factors in common. I think they are more complimentary than competing. The amount of precious metals available are very limited, so there are still plenty of funds to go into both as fiat sets itself on fire.

The idea of digital gold seems to be a waste of time, you need trust in a third party to make sure that gold is a real value and therefore against the principle of "decentralized" cryptocurrencies. In fact, there is no need to link all systems. We need a digital system, gold and paper money.

Shares are highly centralized so that any decisions/news can affect them, and therefore it is possible to predict their movement based on these news.
The dollar represents a decentralized form more than stocks. True, both parties need news in order for changes to occur, but it is very difficult to anticipate price changes, especially with the market capacity, which seems relatively low.

Bitcoin and gold are not the same. Although both Bitcoin and gold can be used as an investment, people still prefer gold because gold is more stable than bitcoin. Besides that, most people will use gold to saving their money because gold has a physical form than bitcoin. But now, we are lived in the modern era which technology was growing in a few decades. And bitcoin offers people with something new as the investment, and people are free to choose, whether still use gold or move to bitcoin or use both Bitcoin and gold at the same time.

Besides that, I think it's not about competition between bitcoin and gold because bitcoin and gold are different. It is up to people which one they want to use as their investment.

There is clearly no connection between the price of gold and bitcoin. What we have seen is just people trying to correlate the three and making a mess out of it or trying to clean up their mess and coming up with their own theories without any proof. It is all a wool pulling bunch of assumption at the most when you come to predict prices like this.

But some things are constant here. During any economic crisis there is a drop in price of bitcoin and stock markets and the gold prices might surge. But overall gold is more volatile than what crypto has been recently after post-2017 pump and dump.

Anyway both are good form of investments if you ask me. Both have their own pros and cons and thus cannot be compared.

From what i can understand from your reply, investment in gold is not that profitable as gold has a stable price and may be affected by economic recession. However, the profit is not always to make earnings, but may just be to stop losing. It's like in crypto when we freeze amounts from a known crypto [btc,eth,ltc...] to one of the stable coins. Gold can be profitable because it is less volatile and more secure than other metals or fiat money.
I think also that bitcoin is not a safe heaven investment and it is partially [price,volatility..] correlated to global economic situation. For short/medium term investment, it is not that safe at all.

Well, Golds are still considered as good investments will never fade through the years. You will never lose your asset if you invest in gold. However,  investing in gold will not give you a return of investment there's no profit that you will gain in golds. In fact, the value of gold is also affected by the economic recession its value may go down due to deflation. Indeed, the best safe haven is Bitcoin because recently we have witnessed that the global economic crisis was not correlated to Bitcoin price, we still have the market green.

Gold has this trust for centuries and very well predictable, however, the asset is prone to loss the next generation to a more portable, divisible, secure and profitable asset. Until the value of a bitcoin supersedes Gold, the rivalry was immense. Blockchain serve more purpose than asset and prone to a lot of improvement in use whereas Gold dont have this ability. All trade of cryptocurrency can still enjoy anonymity compare to gold and the profit will always be second to none at its bull market.

It's a free world therefore we're all free to air our views and thoughts on any subject of discussion most especially on a speculative one like the cryptocurrency industry. Bitcoin also has no competition as the so called competitors will see today aren't worthy of been placed in the same sentence with bitcoin. It's just a matter of time before they die off. I'm quite sure gold most have had the "so called competitors"  in its early years of existence but with time it separated itself from them by outperforming them all.

That's exactly the fate of bitcoin too, as with time it'll distance itself from every other "so called competitors"  out there. Bitcoin detect the cryptocurrency industry price movement as other cryptocurrency trends to follow it footsteps. When you speak about it's mode of operations, I don't think we'll even see any other cryptocurrency as independent as bitcoin. The likes of the competitors are just centralized piece of junks disguise as decentralized project but been head by dictators as CEOs. Just give bitcoin time, Gold was given time before it's what it's today, give bitcoin time too. If it can achieve all it has in just a matter of 10years without any government backing like Gold had, imagine what it'll achieve in the next couple of decade.

Gold is very known investment from long time. Everyone know how "gold" will be the safe investment because many people still want to buy it. But gold doesn't have huge return like bitcoin.

If bitcoin is still survive for 20-30 years, I believe the price of bitcoin is stable, safe and good investment like gold

The ongoing political instability in the world, combined with the outbreak of COVID-19 in recent months has left traditional economies reeling. The longstanding narrative of Bitcoin being a “safe-haven” asset has also been degrading. Perhaps the most historically important asset in human history has been experiencing difficulty that has not been seen in over thirty years.

People shouldn’t be shocked that both gold and Bitcoin are prone to changes in price. Furthermore, all opportunities and items must be considered for their long-term applications. Bitcoin has managed to invoke more confidence, but there is still a long road ahead. Gold already has proven credentials as an asset; regularly holding up well against inflation. This has led to an increase in gold-backed stablecoins. New innovations are also taking hold in the market.

Why Is Gold So Precious And Valued?

Even now, gold is still in demand from multiple different avenues, from being an investment opportunity, a sign of status and expense for purchasers, or, as an internal and integral part of numerous technologies. Not to mention that gold is still an incredibly popular reserve asset.



these factors have all played a very large role in the fact that gold has more often than not, be more effective than any fiat currency, even in the 20th century. The current trend of gold is one of the most stable stores of value that does not seem to be declining. The main market development organization for this asset, the World Gold Council has even stated that over the previous two decades the demand for gold from investors has climbed by 15% each year.

Gold’s History And Potential On The Blockchain

Even so far back as the 1990s, there were efforts to digitize gold as an asset, which was most notoriously started by the now dead in the water E-Gold. Despite these efforts, it has been eleven years since the Bitcoin Blockchain appeared on the map of digital currencies and we have only recently seen the idea of gold as a digital asset gaining traction.

Source and the full article

Personally I think Bitcoin is acting much in accordance to stock markets while gold goes the opposite direction. I know Bitcoin tries not to act the same way as stock markets, but gold has an advantage: it has no competition. All this while there are at least 100 different cryptocurrencies. Until the people go for investing for a long time and not short-time profit, I honestly think Bitcoin has no chance of acting differently from the stock market.