"Digital currencies are a speculation, like gold" - Federal Reserve Chairman

[NFT_QUEEN]

 

🤣🤣

 

 

 

[NFT_QUEEN]

 

 

[NFT_QUEEN]

I used to be a goldbug till spring 2020 [almost like Peter Schiff's son, Spencer]. Thought it was going to $4k per ounce amid the economic meltdown. But it didn't. Because unlike bitcoin, new gold deposits are being discovered every year.

 

I can talk a lot about gold vs bitcoin.

[NFT_QUEEN]

 

[Marujan]

i think that frozen dog pooop is a future gold, lets collect that too

 

[Jason S. Global Moderator]

On 02/03/2022 at 11:51, NFT_QUEEN said:

I used to be a goldbug till spring 2020 [almost like Peter Schiff's son, Spencer]. Thought it was going to $4k per ounce amid the economic meltdown. But it didn't. Because unlike bitcoin, new gold deposits are being discovered every year.

 

I can talk a lot about gold vs bitcoin.

Gold is a long-game. years, decades. bitcoin is so young that it's a short-game. the vast majority of people play the Bitcoin game to get rich quick and get out. The funniest thing to me is that people still compare bitcoin to a perceived value in their local currency. that's entirely besides the point. it's supposed to be a replacement for the failing local currency.

 

While yes, there are continuing gold operations all around the world, the peak gold discovery period ended decades ago. Most mines arent profitable at current prices, which are artificially suppressed by many means. The fact is, it's getting harder and harder to find gold and most mines cant even start new mines b/c they wouldnt be profitable. Most new mines are so remote that there simply isnt enough infrastructure in the remote areas to support the operation.

 

while i respect anyone investing in bitcoin, gold is still a viable option for a long-term hedge. remember: long-term. it'll always be valuable. will bitcoin? too early to tell.

[Jason S. Global Moderator]

On 02/03/2022 at 12:01, NFT_QUEEN said:

 

Powell is an idiot. a captain on a sinking ship. It's not possible to have more than one reserve currency. The US will fight it to the bitter end, though. Once the US loses the status, i believe the next reserve currency will be the SDR. Maybe that's what he means by more than one reserve. Screw it, let's have a basket of reserve currencies in the form of the SDR. who knows.

[Jason S. Global Moderator]

On 02/03/2022 at 11:43, NFT_QUEEN said:

 

 

bitcoin, currently, is 100% speculation. it's far too young to be a viable currency. almost nothing is transacted in bitcoin. people are speculating, buying and hoping it'll go up against their local currency.

 

gold is not speculation. it's money. it's not currency. like i said before, gold will always be in need and always valuable.

[Jim K Global Moderator]

Is he wrong?  If you buy one ounce of gold ... in ten years you will still have one ounce of gold.  That one ounce of gold will not have produced any income, dividends, cash flow, etc.

 

Same with (for example) Bitcoin.  You have 1 BTC today and in ten years you will still have that 1 BTC.  It will not have produced any income, dividends, cash flow, etc.  

 

Both of these, with respect to investing, is the speculation that you'll offload them at a higher price in the future.

 

Which is why I cringe when people use the highly volatile crypto to purchase crap.  I have Bitcoin...but I'm treating it as a high risk investment.

[Jason S. Global Moderator]

On 02/03/2022 at 12:37, Jim K said:

Is he wrong?  If you buy one ounce of gold ... in ten years you will still have one ounce of gold.  That one ounce of gold will not have produced any income, dividends, cash flow, etc.

 

Same with (for example) Bitcoin.  You have 1 BTC today and in ten years you will still have that 1 BTC.  It will not have produced any income, dividends, cash flow, etc.  

 

Both of these, with respect to investing, is the speculation that you'll offload them at a higher price in the future.

 

Which is why I cringe when people use the highly volatile crypto to purchase crap.  I have Bitcoin...but I'm treating it as a high risk investment.

while i dont disagree with you, the perceived value of BTC and gold is what changes based on the economy. Those two should not be valued in dollars, or any other currency, but the goods and services that they can obtain. The "value" of the dollar always goes down. We've seen that consistently since 1913 and we're seeing an an increasing rate today due to inflation.

[NFT_QUEEN]

On 02/03/2022 at 20:30, Jason S. said:

 bitcoin is so young that it's a short-game.

 

It's 2022 now; The Bitcoin White Paper was published in 2008. The network has been operational since January 2009. It's been through A LOT since then! It has rigorously survived all sorts of existential threats. 

 

I would've agreed to your statement prior to the infamous pump and dump of December 2017. Since then and, especially, since the market crash of March 2020, Bitcoin has witnessed a massive adoption by institutional investors. It was a real turning-point for many investors [both retail and corporate], culminating in a first sovereign country adopting Bitcoin AS LEGAL TENDER [speaking of El Salvador ofc].

 

Bitcoin's price today reflects that and proves that it's a mature asset already.

 

 

On 02/03/2022 at 20:30, Jason S. said:

 the vast majority of people play the Bitcoin game to get rich quick and get out. 

Nothing's wrong with that  

 

However, that's also a wrong statement. 

 

The beauty of the blockchain is that it's public, transparent, and easily verifiable among other things. We can pull all sorts of analytical data from it: such as the number of active addresses, holders, when was the last time they moved their coins, whether they are in profit or loss, etc - it's truly amazing!

 

The on-chain data shows that bitcoiners are zealously holding on to their coins. They are not selling and keep on accumulating by buying the dips. Around two-thirds of all Bitcoin supply is illiquid [which means it is moved into wallets that have no history of spending].

 

On 02/03/2022 at 20:30, Jason S. said:

while i respect anyone investing in bitcoin, gold is still a viable option for a long-term hedge. remember: long-term. it'll always be valuable. will bitcoin? too early to tell.

I respect anyone basing their investment decisions not on emotions, but on facts.

 

We don't know what the future holds for us.

 

The fact of the matter is that Bitcoin supply is limited to just 21 million coins. On the other hand, new gold deposits are being discovered constantly. It doesn't matter how remote they are, or how difficult they're to extract - if there's a will and an economic incentive, there's a way. It's just business with its own unique cost-benefit analysis. 

 

On 02/03/2022 at 20:35, Jason S. said:

bitcoin, currently, is 100% speculation.

In this regard, it's no different than any other tradable asset then: commodities, stocks, or bonds.

 

Many things in life are a speculation, a bet. Nothing's wrong with that.

 

A groom marrying a fiancé is betting that she won't cheat on him in the future: hoping she'll be his faithful wife till death does them apart.

 

When a car insurance company sells a policy with a discount to their triple AAA customer/driver, they're betting on him/her not to end up in a car accident this year.

 

Bitcoiners are betting on the coming of the event called hyperbitcoinization.

 

Please, don't get me wrong thou.

 

I do believe there's a sound investment case to be made for gold right now.

 

I just believe Bitcoin is digital gold. For one, it has a MUCH better portability than gold. Imagine having to move gold bars across the border for example - it would be a TOTAL nightmare.

 

On 02/03/2022 at 20:37, Jim K said:

Is he wrong?  If you buy one ounce of gold ... in ten years you will still have one ounce of gold.  That one ounce of gold will not have produced any income, dividends, cash flow, etc.

 

Same with (for example) Bitcoin.  You have 1 BTC today and in ten years you will still have that 1 BTC.  It will not have produced any income, dividends, cash flow, etc.  

 

Both of these, with respect to investing, is the speculation that you'll offload them at a higher price in the future.

 

Which is why I cringe when people use the highly volatile crypto to purchase crap.  I have Bitcoin...but I'm treating it as a high risk investment.

 

1 BTC = 1 BTC 

 

You're speaking like a true bitcoin maxi, ser.

 

It's a compliment  

 

I'm a sinning bitcoin maxi by the way 

[+E.Worm Jimmy Subscriber¹]

LIKE GOLD? 

 

he basically just approved and solidified crypto.  Comparing it to gold basically means that US sees it as a valid alternative to USD and are scared.

 

Pretty sure this is not the message he wanted to send but his is what it is.

 

 

[Jason S. Global Moderator]

On 02/03/2022 at 14:57, NFT_QUEEN said:

 

It's 2022 now; The Bitcoin White Paper was published in 2008. The network has been operational since January 2009. It's been through A LOT since then! It has rigorously survived all sorts of existential threats.

 

I just believe Bitcoin is digital gold. For one, it has a MUCH better portability than gold. Imagine having to move gold bars across the border for example - it would be a TOTAL nightmare.

neither of us are disagreeing with each other. we're just arguing semantics at this point. BTC has been around since, say, 2008 but gold has been money for, say, 5000 years.

 

bitcoin may be digital gold but only as long as there's electricity and the internet. Not worth anything if there's no power grid!