Topic: The Real Reason to Hold Gold And Bitcoin - page 56. (Read 674532 times)

Well that is a valid concern. People do become more efficient at extraction as time go by and that could slightly increase gold yield. And yes asteroids. At least, when it comes to scarcity, Bitcoin is assured to have only a certain amount ever available. Even before mining them all out, some are probably already lost from unclaimed faucet payouts and some bitcoins stuck in wallets that people forgot how to access (I know at least one person with this problem).

Gold and bitcoin are good investment, bitcoin still in early stage and unstable but it has the potential to grow bigger than gold, storing gold is good for long term investment, gold will always be valuable and will never be banned, investing in bitcoin got more risk than gold and invest in gold and bitcoin are better than fiat

Also most fiat money depreciates in value over time. Gold fluctuates, but is always in enough demand to recover after it drops. It is yet to be seen whether Bitcoin will survive long term, but if it does, the deflationary nature of it should put its growth way ahead of fiat.

It's always good to diversify our money, but for those who don't have much money and want to increase it, I think it's better to choose only one of them, in this case bitcoin, as you said, possible return is much faster than gold.
When these persons start having more money, after the initial profit, it's a good idea to diversify the money, maybe mixing bitcoin with gold or any other thing, but make sure to have bitcoin investment, that is from where the main profit comes from.

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Obviously HODLing both gold and Bitcoin is better!  Both diversify almost anyone's portfolio, and both BTC and Au move differently from each other (and so are even better suited for diversification).

I know more about gold than I do about BTC.  Still, Bitcoin looks like a great speculation.  It IS riskier than gold, but its possible return could be very high.

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cellard wrote that a possible problem with gold might be finding huge mines.  First, that is unlikely (possible of course).  Secondly, the Stock:Flow ration of gold is higher than just about anything else.  

An extra 100 tonnes of production per year (that would be a YUUGE mine) makes no difference, most gold just disappears into a Black Hole of Investment.  So would the 100 tonnes.  So would 300 tonnes...  (Total world production of gold is around 3000 tonnes / year, total stock of gold is about 180,000 tonnes).

Asteroid mining of gold (and even platinum-group metals) is so far off in the future that it can be ignored for the foreseeable future.

I think the best investment any one can made now is buying bitcoin and hold it for long time. I sold my bitcoin yesterday at $1119 and today it is trading at $1200 am seriously regretting! I find out that for one to stabilize it financial position you must invest in something which price is not influence by inflation and our current banking system.

The real reason to hold Gold and Bitcoin is human tendency to secure future or to fulfill security needs compromising present.
Due to sky-rocketing inflation, mere savings won't gonna help developing capital for person. Certain contingencies like accident, etc can shake the entire budget of individual. Hence, to stabilize one's financial position and to give catalyst impact to savings, person goes for investment in gold and bitcoin.

Rarity is the real reason why to hold Gold.  And the deflationary feature why to hold Bitcoin.  Both of these feature gives each items an increasing value overtime.  This is enough reason to hold Bitcoin and gold specially to those who is not familiar with day trading.  This will serve as an investment that will give us profit in the long run.

Bitcoin is pretty much unstable. Maybe more suited for trading and such.
But for long term gold is better. That's why is was chosen as the best metal. It keeps in time and in almost any type of scenario or environment.

For your savings, you should definitely hold gold and/or Bitcoin.  This post is unreasonable though because not everyone can expect to gain from an asset.  If everyone in the world held gold and continued to do so, the price would not rise (because the price increase would not be from an increase in adoption so it would have to be due to progression of the economy, which cannot happen all of the time).  Even if progression of the economy did happen all the time, the continued introduction of new gold would result in falls until all of the gold was introduced.  So by nature, gold's inflation rate is neutral or positive - only its current state results in deflation.

The same applies to Bitcoin, but in a different way.  If everyone held Bitcoin, the rate of new Bitcoin being introduced would decrease as gold does, but at a more specific rate.  So in the end, Bitcoin's inflation rate would neutral or positive to a negligible extent (tiny fractions of a Bitcoin per block).  However, Bitcoin in its current state would be inflating if everyone held it.  This does not mean that anyone is stealing your Bitcoin from you - on the contrary, inflation can be tolerable and even positive to an economy's operation and therefore does not represent the direct theft of money.  Furthermore, this potential inflation would just subsidise miner fees.  Right now, we are beginning to realise that as fees only represent a small amount of miners' revenue, after continued block halvings it would eventually result in huge fees to the amount of Bitcoin being sent if they were minor transactions - so the inflation of Bitcoin proves that inflation can be positive as it serves a definitive purpose which affects the community positively.

The real reason is that they have limited supply, and people want them. (people may not want bitcoin in the future btw) People always want gold and they want to gather as much as possible in their lifetime. It is the only solid asset which holds its true value through the centuries.

I think both are good investments. Both have huge whales, but so does everything else to be honest. At least with bitcoin whales have no control over total supply and it is fixed.

With gold... what if huge mines are found? or some asteroid once we have advanced technology? that makes me a bit worried for the long term.

I would also rather have people that just bought BTC cheaply because they liked the idea rather than some warlords that stacked tons of gold through centuries.

The world is run by the state-bank alliance.  The top politicians and bankers jointly profit from inflating the values of money and debt with state power -- this system couldn't survive without either side.

See Dissecting the Parasitocracy.

The interesting thing is, if you buy and hold gold and Bitcoin for the long term, you can benefit.  (Just make sure you don't buy when the global empire is rising, like the 1950s or early 1990s.)  The reason is also due to the nature of the state-bank alliance.

Note that, in this alliance, the top politicians contribute state power, while the top bankers contribute financial know-how.  The politicians, being totally ignorant in this high-stakes and specialized game, are basically led around like children.  They just go along because they benefit from issuing huge amounts of public debt without being punished by the 'markets.'

So here's the problem with this alliance.  When financial asset values collapse (and this day will come, due to the incentives faced by the elites) and everyday people suffer, the politicians will put all the blame on the bankers.  The reasons are obvious (and there is no loyalty in that game,) and the politicians are going to win that argument.  The biggest such events in history include the Spanish Inquisition and the Nazi Holocaust.  In our day, politicians like Bernie Sanders and Elizabeth Warren have already gone after the bankers.

Knowing that, the bankers and central bankers must prepare a last-ditch rescue for a worst-case scenario, when all trust in the system is gone.  That rescue will be some non-state-issued asset, like gold, silver, and Bitcoin, that the elites can peg their money to (at a high price for the non-state asset,) stabilize their system, and ease the suffering.  Even if the bankers think there's only a small chance for such an occurrence, it will be so devastating to the bankers that they must prepare for it.

So, the elites will try to suppress non-state assets, but won't kill them, even when given a chance.  In the long run, this presents something like a one-way bet for these assets, at current prices.