Will Gold and Silver lose all its speculative value to Bitcoin?

Asrael999

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Quote from: CaptainBeck on January 21, 2014, 08:51:49 AM

Quote from: billyjoeallen on January 21, 2014, 08:19:36 AM

Geologists say there is enough gold in the earth's crust and mantle to cover the surface of the planet eight feet deep.

So much gold, yet in the history of man we have only mined around 9300 m3 of gold. About the size of big Ben.

Just because things are in the mantle or even the crust. Doesn't mean we will ever get access to it, and if we did its would be so costly then yes gold would be a good thing to own.
[/quote]

A cube 21m x21m x 21m is the most common description (blame Wikipedia)
The same article states that most of the gold in the planet is within the core (and therefore unobtainable at current tech levels) , that which is mined currently is widely to be considered the result of meteorite impacts.

CaptainBeck

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Quote from: billyjoeallen on January 21, 2014, 08:19:36 AM

Geologists say there is enough gold in the earth's crust and mantle to cover the surface of the planet eight feet deep.

So much gold, yet in the history of man we have only mined around 9300 m3 of gold. About the size of big Ben.

Just because things are in the mantle or even the crust. Doesn't mean we will ever get access to it, and if we did its would be so costly then yes gold would be a good thing to own.

CaptainBeck

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Its pretty hard to steal and lose gold. It doesnt require internet connect and a world wide network of computers. Gold has real life uses.

billyjoeallen

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Quote from: CaptainBeck on January 21, 2014, 08:05:30 AM

No, just straight up no!

Gold is a physical item that the world will always trust to be there and have a price.

Yeah well aluminum will always be there and have a price too. Geologists say there is enough gold in the earth's crust and mantle to cover the surface of the planet eight feet deep. No asteroid mining required. Gold just isn't portable enough to be used in the digital age without counterparty risk. You can't email it. You can't text it. You can fill it with tungsten. You can triple count it in vaults, plate lead bars with it, or just leave it in the ground until it's profitable to pull it out.

CaptainBeck

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No, just straight up no!

Gold is a physical item that the world will always trust to be there and have a price.

600watt

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Quote from: wachtwoord on November 21, 2013, 07:39:15 PM

Quote from: Coinseeker on November 21, 2013, 07:38:19 PM

Gold is tangible. Bitcoin can aspire to tap into the gold market sure, but gold is still a better store of value because it requires nothing to exist. Bitcoin will always require electricity.

Tangibility is actually an undesirable property. Time will show everyone because superior currencies will win in the end.

the industrial revolution changed the face of this planet, the way we live, the way we think, work, etc. the digital revolution is of the same impact. and now the digital revolution gets directly monetized. all the wealth aquired by/since the industrial revolution can go digital, and some will. cryptocurrencies are fueling the digital revolution part II. gold and silver are ok, but they are no gamechangers.

jofus87

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Quote from: aminorex on January 21, 2014, 02:56:43 AM

Quote from: jofus87 on January 21, 2014, 02:29:57 AM

I'm putting currency into BTC, gold, and silver. What could go wrong?

The stock market could go up, and shale oil abundance could pressure metals down, while BTC does the usual irrational dip thing before it skyrockets, and your net worth is cut in half while your brother-in-law's 401k doubles.

Not likely, but it is conceivable. Or DOGE could render them all obsolete.

That jerk brother-in-law of mine! My opinion based off the Dow/Gold ratio is that metals are undervalued currently. Plus, QE has just been inflating the stock market bubble while further devaluing the USD. I'm liking the idea of putting those dollars into real money that holds value (relatively).

aminorex

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Quote from: jofus87 on January 21, 2014, 02:29:57 AM

I'm putting currency into BTC, gold, and silver. What could go wrong?

The stock market could go up, and shale oil abundance could pressure metals down, while BTC does the usual irrational dip thing before it skyrockets, and your net worth is cut in half while your brother-in-law's 401k doubles.

Not likely, but it is conceivable. Or DOGE could render them all obsolete.

jofus87

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I'm putting currency into BTC, gold, and silver. What could go wrong?

billyjoeallen

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Gold became money (the most liquid commodity) because it is:
Recognizable
Portable
fungible
divisible and...
scarce.

Bitcoin is more
recognizable
portable
fungible
divisible and
scarce.

This is obvious and not even controversial. Any argument to the contrary inevitably breaks down into semantics.

Bitcoin is not yet money, but it's already a very marketable commodity, and becoming more so. Gold is becoming less marketable. Good luck trading gold for a beer.

aminorex

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Quote from: byronbb on January 20, 2014, 07:26:19 PM

No one is mining any asteroids any time soon. Roll Eyes

I would be willing to bet that all of the private space companies have a plan in the works to orbit and strip one of the 40 or so asteroids estimated to have economically viable quantities of platinum group metals. I'd give it 10 years, max, before a project is launched (literally).

Anon136

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Quote from: ?? on ??

Quote from: Anon136 on January 20, 2014, 07:42:56 PM

Quote from: byronbb on January 20, 2014, 07:26:19 PM

No one is mining any asteroids any time soon. Roll Eyes

it may be easier than you think. you dont have to like get a space suit, and a rocket and start swinging a pickaxe in zero g. it would be more like: buy up a SHIT load of unused desert; find a asteroid that is passing near earth soon and then doing another pass by again in the future. send an unmaned vehicle into space. attach the vehicle to the asteroid. use a rocket to nudge it ever so slightly in the right direction early on in its course so that the tiny effect had a disproportionately large impact over its 10 + year course before it returned. then steer it over your desert and let it burn up in the admosphere over your desert. then you just use big sand harvesters like in dune to sift through the surface layer of desert.

People are already working on it but sure it's not for tomorrow

http://www.planetaryresources.com/mission/

no but the market is already beginning to price it in, and will continue to price it in more and more the closer people come to figuring it out. I know this for a fact because i actually sold silver to buy my bitcoins for precisely this reason. so i was actually one of the people who participated in pricing this thing into the silver market. (man what a great choice that was)

chessnut

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Quote from: afbitcoins on January 20, 2014, 06:56:10 PM

Will Gold and Silver lose all its speculative value to Bitcoin.

Short answer.

No

Gold and Silver have properties that bitcoin does not. Bitcoin cannot replace gold and silver. Also bitcoin itself may fail or become centralised. The scalability of bitcoins will become a problem in the future. Gold and Silver have no such issues and are tried and tested several times throughout history being used as money.

but bitcoin plays the same role as gold only better. 99% of gold will always be locked behind vaults were its intrinsic value will be worth diddily squat. This is only for the purpose of accounting. Bitcoin is the most sophisticated accounting system in history.

Anon136

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Quote from: byronbb on January 20, 2014, 07:26:19 PM

No one is mining any asteroids any time soon. Roll Eyes

it may be easier than you think. you dont have to like get a space suit, and a rocket and start swinging a pickaxe in zero g. it would be more like: buy up a SHIT load of unused desert; find a asteroid that is passing near earth soon and then doing another pass by again in the future. send an unmaned vehicle into space. attach the vehicle to the asteroid. use a rocket to nudge it ever so slightly in the right direction early on in its course so that the tiny effect had a disproportionately large impact over its 10 + year course before it returned. then steer it over your desert and let it burn up in the admosphere over your desert. then you just use big sand harvesters like in dune to sift through the surface layer of desert.

BlackBison

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Quote from: seanneko on November 22, 2013, 07:23:29 AM

The market doesn't need to be flooded with supply for the value to fall, demand just needs to drop. And this is exactly what's been happening for the last ~~year~~ 500 years or so.

Fixed that for you Grin

byronbb

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No one is mining any asteroids any time soon. Roll Eyes

XxionxX

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Digital money you say?

I think bitcoin will take gold and silver's speculative value if we start asteroid mining. I don't think PMs will ever go away before that.

byronbb

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HODL OR DIE

The cool thing bitcoin has going for it is there is no premium for fractional bitcoins. A gram of gold costs you a terrible premium of like 20% over spot value. I see a market in ripple (or colored bitcoins) to digitize gold and other assets.

afbitcoins

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Will Gold and Silver lose all its speculative value to Bitcoin.

Short answer.

No

Gold and Silver have properties that bitcoin does not. Bitcoin cannot replace gold and silver. Also bitcoin itself may fail or become centralised. The scalability of bitcoins will become a problem in the future. Gold and Silver have no such issues and are tried and tested several times throughout history being used as money.

Coinseeker

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Quote from: wachtwoord on November 22, 2013, 10:40:05 AM

YES I have an answer. Explain to me how you would do it with gold. Then you have you're answer because it will be done EXACTLY THE SAME.

Seriously, how difficult is this?

I'll take that as a no. Roll Eyes

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