Here's what it will mean to crypto - absolutely nothing.
The majority of that gold will just be sold to China anyway, in exchange for developing infrastructure in Uganda (China has historically helped African countries with this model).
Topic: Uganda’s gold discovery: What it could mean for crypto !!! - page 3. (Read 528 times)
Surly discorvering gold in a country won't change things a lot. The most important thing you said is about gold having a limited total supply, the thing we know about it is the total supply is pretty sure limited for gold but that's not very clear like bitcoin, when you are talking about bitcoin you know there will be only 21M bitcoins in the world and that's not going to be changed about bitcoin. But on the other hand, we know the total supply of gold is also limited because even if they discover all the gold mines in the world the amount is still limited but that's better to say that's an unknown limited amount of gold total supply.
I don't know if the estimates of gold for this Uganda ore are correct and how they can compare to what's known of gold these days, but the Reuters article suggests that the supply in there might exceed the total amount of gold currently in circulation. If that's true and it can be extracted in such numbers, gold could indeed devaluate extremely. And yes, with Bitcoin, it would never become a problem. Also, it's no secret that gold mining has big environmental impact, harms the communities and nature, contaminates water supplies. Bitcoin mining, on the other hand, doesn't have such a direct negative impact on communities and can be done in eco-friendly ways.
For Uganda, this is a great success! If gold is further mined from new deposits in this country, then these revenues may exceed revenues from the exploitation of oil fields. And this is very, very good money! How this may affect the price of bitcoin, I do not know. And I am very happy for Uganda! African countries deserve good living conditions. Uganda's mining industry needs support now.
I don't think it will have a direct impact on Bitcoin. Bitcoin is scarce, we already knew that, while gold has no limit, just as fiat currencies have no limit and more and more of them are being printed. I think the news will have an impact on the price of gold, in the medium term, but I don't see a direct correlation of the Bitcoin.
I think since gold is a physical asset such news may not impact the price the way it would have if it was about crypto. Unlike crypto, i doubt anyone will panic sell their gold base one the news about the Uganda gold discovery, if this is actually true, and they somehow managed to extract it perhaps it will have a slight effect but I doubt that is happening anytime soon.
Huge ore would survey call for big investors to invest in Uganda for extraction, share of interest etc but having huge supply means worlds demand is getting fulfilled and thus it would lead to lesser pricing. But obviously extracting gold is not easy task. Its gonna take huge set up before the operation can be started up in Uganda. Government will have control over the operation so there would be challenges in prices too. Anyways gold synch throughout world and then prices are decided.
I dont think there would be much of the influence of this over bitcoin. Bitcoin still stays as independent asset and will thrive like that.
I dont think there would be much of the influence of this over bitcoin. Bitcoin still stays as independent asset and will thrive like that.
Silver is a better metal to hold for inflation as there is about 1,500,000 tons mined as I type so finding 2,000,000 tons is unlikely and my fear of silver flooding the market is not so big.
Imho gold is so expensive because it's being hoarded by the central banks and other institutions. It's not only about the scarcity, it's also about the demand.
So the silver example may not be the best, since, although it's indeed scarce, the demand is also not that good.
It is hard to react to something which appears to be highly exaggerated. This has yet to be ascertained. So without a solid proof of its existence, this is nothing but a mere rumor. Or perhaps a wishful thinking on the part of Uganda. For now, it is more unlikely than likely that there is indeed 31 million metric tons in gold ore, whose equivalent is approximately 320,158 metric tons in refined gold, under Ugandan soil.
But if it's true, then it must be a good thing. The world needs gold and it surely helps a lot if it becomes much more affordable.
But if it's true, then it must be a good thing. The world needs gold and it surely helps a lot if it becomes much more affordable.
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I don't think it will have a direct impact on Bitcoin. Bitcoin is scarce, we already knew that, while gold has no limit, just as fiat currencies have no limit and more and more of them are being printed. I think the news will have an impact on the price of gold, in the medium term, but I don't see a direct correlation of the Bitcoin.
Yes I heard about this last week and was surprised that it didn’t have much affect on price of Gold. So I am assuming it’s because it hasn’t been confirmed or that it’s so difficult to extract the gold that it won’t have a big affect on price.
Same with Elon’s theory of how there is tons of Gold on asteroids. It also didn’t affect price. Because even if it’s out there, doesn’t means it’s easy to land on the asteroid and extract the gold. Mining the gold is very costly and difficult.
Same with Elon’s theory of how there is tons of Gold on asteroids. It also didn’t affect price. Because even if it’s out there, doesn’t means it’s easy to land on the asteroid and extract the gold. Mining the gold is very costly and difficult.
The numbers from Uganda are probably exaggerated.
There are some reports that the gold discovery in that country is far lesser than what was announced by the government of Uganda because they may have been confusing metric tons with ounces in their projections. This news didn’t even affect the current price of gold and I doubt if it would ever. Hence, I don’t expect much from this news because the World Bank and its allies know how to manipulate such discoveries to ensure it doesn’t affect the economies of its financiers whose wealth are mainly stored in gold. The same story line, destabilize the country politically through coup or internal crisis. Support and empower a particular group and use them to illegally extract the gold. Then loot and move the resources to their lands and control its demand and supply as usual. It happened the same way in Liberia, Sierra Leone, Congo, South Africa and it is currently happening in Central African Republic. 
Risk is there for both gold and bitcoin. Even though the number of bitcoin is capped, it doesn't necessarily mean that it is deflationary in nature. Also bitcoin haven't yet proved itself as a great hedge asset. It's super volatile and we are all seeing the same in the market currently.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
dude the amount of gold in Uganda when extracted is 300,000 tons. all the extracted gold in the world is 200,000 tons.
so the supply is now 500,000 not 200,000. The issues are simply is it easy to work and can it be extracted in:
1 year if so gold will tank like a motherfucker.
5 years gold will drop under 1000 bucks.
10 years gold will drop a small amount.
20 years gold will stay about the same.
Add in the gold on the asteroid and we go to 1,500,000 tons of gold about as much as silver.
of course the asteroid gold is less certain to be mined.
Silver is a better metal to hold for inflation as there is about 1,500,000 tons mined as I type so finding 2,000,000 tons is unlikely and my fear of silver flooding the market is not so big.
Why people always include bitcoin on discussion while we can say all of those is physical assets which can possibly used by their government to strengthen their economy? For sure if a investor is also a crypto users for sure they will adopt the two option since having a good commodity to invest and bitcoin asset to have is better option so for me I don't think its good to compare if anything bad or good will happen if certain discovery will down or up.
Gold will not become inflationary as a result of this discovery.
While there may be some uptick in demand for the metal as a result of this news, the overall impact is likely to be limited.
Bitcoin, on the other hand, could potentially replace gold as a store of value due to its scarcity and reliability. If it does happen, then it will be at least 2~3 decades later. I hope it becomes a reality.
The numbers from Uganda are probably exaggerated.
While there may be some uptick in demand for the metal as a result of this news, the overall impact is likely to be limited.
Bitcoin, on the other hand, could potentially replace gold as a store of value due to its scarcity and reliability. If it does happen, then it will be at least 2~3 decades later. I hope it becomes a reality.
The numbers from Uganda are probably exaggerated.
Is gold becoming inflationary? Can Bitcoin replace it as a store of value due to its scarcity and reliability? Are Uganda’s numbers implausible? Questions arise.
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What does the state of gold mining in Africa have to do with the price of global Bitcoin (BTC)? Quite a bit, potentially.
Bitcoin has periodically laid claim to being digital gold largely on the strength of its strict 21 million supply limit, which makes it non-inflationary and a good store of value — in theory. Gold, of course, is the store of value par excellence, with a limited supply and a solid track record that goes back millennia.
But, if Uganda is sitting on 31 million metric tons of gold ore, as the government declared, might not that substantially boost the world’s gold supply? That in turn could lower the price of gold — and make it a less secure “store of value” generally. Gold’s loss could be the cryptocurrency’s gain.
Some drew encouragement from this notion. Microstrategies CEO Michael Saylor, for instance, posted a video on Twitter about the Ugandan discovery of “huge gold deposits” which might net 320,158 metric tons of refined gold “valued at $12.8 trillion.” As Saylor noted on June 17: “#Gold is plentiful. #Bitcoin is scarce," further telling CNBC:
source
And am wondering how did Uganda get hold of such a huge number of gold ore all of a sudden? and if this this true will this be enough reason for investors to turn to btc with proven limited supply or not? Do share your beautiful opinion.
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“Every commodity in the world has looked good in a hyperinflationary environment, but the dirty secret is you can make more oil, you can make more silver, you can make more gold […] Bitcoin’s the only thing that looks like a commodity that is scarce and capped.”
These are fraught times for the cryptocurrency and blockchain sector, so it isn’t surprising that industry proponents might seize upon any promising news to help charge flagging markets. A Reuters report out of Uganda last week about a massive gold ore discovery supplied just this kind of fuel.What does the state of gold mining in Africa have to do with the price of global Bitcoin (BTC)? Quite a bit, potentially.
Bitcoin has periodically laid claim to being digital gold largely on the strength of its strict 21 million supply limit, which makes it non-inflationary and a good store of value — in theory. Gold, of course, is the store of value par excellence, with a limited supply and a solid track record that goes back millennia.
But, if Uganda is sitting on 31 million metric tons of gold ore, as the government declared, might not that substantially boost the world’s gold supply? That in turn could lower the price of gold — and make it a less secure “store of value” generally. Gold’s loss could be the cryptocurrency’s gain.
Some drew encouragement from this notion. Microstrategies CEO Michael Saylor, for instance, posted a video on Twitter about the Ugandan discovery of “huge gold deposits” which might net 320,158 metric tons of refined gold “valued at $12.8 trillion.” As Saylor noted on June 17: “#Gold is plentiful. #Bitcoin is scarce," further telling CNBC:
source
And am wondering how did Uganda get hold of such a huge number of gold ore all of a sudden? and if this this true will this be enough reason for investors to turn to btc with proven limited supply or not? Do share your beautiful opinion.
Very, and from the bottom of my heart, happy for Uganda! The discovery of new gold deposits can improve both the financial and social sphere in the country. But not a fact ... Unfortunately! It all depends on how these resources will be managed by the owner of this valuable resource - the PEOPLE and the government of Uganda! There are many examples when some countries, usually with a totalitarian or inadequate government, use profitable resources for inadequate goals. This may be the enrichment of a small group of friends of a totalitarian ruler, corruption schemes, etc. I am not familiar with the situation in Uganda, so I am not ready to predict the development of events after the discovery of such resources.
Yes, and this will not affect bitcoin in any way, due to the fact that the real world of fiat money has nothing to do with the speculative and manipulative world of cryptocurrencies...
Is gold becoming inflationary? Can Bitcoin replace it as a store of value due to its scarcity and reliability?
To many, bitcoin cannot yet be regarded as a reliable store of value, and gold will still remain top on their option list despite any information about an increase in supply. The demand for gold is very high so any little quantity that the Ugandan government can mine and continue to supply to the market, will quickly be taken off the market for use, hence gold will not be as random as we may think and prices may not fall. would be nice if they can really get some of it now to help the Ugandans people.
It would be nice of corruption doesn't set in. 
Risk is there for both gold and bitcoin. Even though the number of bitcoin is capped, it doesn't necessarily mean that it is deflationary in nature. Also bitcoin haven't yet proved itself as a great hedge asset. It's super volatile and we are all seeing the same in the market currently.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
this is true, even if they claim they are sitting on tons and tons of gold. it doesn't mean they have easy access on such precious metal. it would take years and years before they will extract gold, hence, i don't think it will have significant impact in the gold market. would be nice if they can really get some of it now to help the Ugandans people.
i don't think this will be a determining factor for some investors in crypto. people will invest in gold or crypto, depending on how they look at this market. this uganda's gold discovery i guess won't be such a big deal in my opinion.
Risk is there for both gold and bitcoin. Even though the number of bitcoin is capped, it doesn't necessarily mean that it is deflationary in nature. Also bitcoin haven't yet proved itself as a great hedge asset. It's super volatile and we are all seeing the same in the market currently.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
Gold has been used as a hedge asset since a long time. Uganda's gold discovery wouldn't dent on the price of gold due to its robust demand. Also a gold deposit takes a long long time to excavate so it's highly unlikely to increase the supply to such an extent that damages the price trajectory of gold.
Is gold becoming inflationary? Can Bitcoin replace it as a store of value due to its scarcity and reliability? Are Uganda’s numbers implausible?
There's a possibility that gold is becoming inflationary as if you look into other things that has less value than gold already has inflation.I doubt that bitcoin or any cryptocurrency can replace it but still you can compare the same way as before as a "digital gold".
Probably with that kind amount of gold being mined on Uganda but still that kind of amount, it will surely affect it's price having it supply being boosted with that amount.
Just finding a gold ore is not enough one must weight down everything that there is before jumping to their opinion they would need investors, mining permission and considering the impact on the environment the government might not be that reluctant to bet on it and even if they did it would take years, they won't be able to add everything that soon in the circulation which means that the price decrease for the gold would be gradual and would not be that important. Other than that cryptocurrencies like Bitcoins, they should not be called digital gold perse since we do have an Altcoin named the same as well and I do think that bitcoins and gold is very different and people already know it right now, they are investments for sure but they don't have to be that competitive.
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