Bitcoin Forum

So, everyone complains about the Bitcoin chart looking like you'd make lots of money. Bitcoins are a finite resource that can be mined at a growing difficulty. You know a similar resource? Gold!

https://i.imgur.com/dvKS9.gif (http://www.wolframalpha.com/input/?i=price+of+gold)
(right now we are close to the origin (left) oft the chart)

This seems quite unlikely for a resource like gold. I mean it's mainly used as a trading good. There other usages of gold, but most of it is stored in safes. Oh and there are other usages for Bitcoins too, Namecoin for example.

So what we can find here is just a peak. There is a drop in price. Of course, we all know this, but this just means Bitcoins are cheaper right now and not that it will crash to 0 USD, because at that point the risk is low and at least at that point everyone will buy. The only interesting question right now is how far it will drop, so people interested in Bitcoins can buy them cheaply. I think of we want more users to strengthen the system we should advertise this price drop as it is a good time to buy.

I hope that you'll now have a better sleep. If you are still convinced Bitcoins aren't worth anything, feel free to give them to me! ;)

1$ bought a lot more in 1920. and 1940. and 1980. and even 10 years ago, the dollar was up.

gold is up in price. but its not 1000x more valuable, with inflation factored in, than it was in 1940.

one of the reasons people use gold as a base for value: if gold is more expensive in your country = your money is worth less. its a good baseline because its not an extremely easy to produce or common material.

Why do people use the wrong charts....
http://www3.wolframalpha.com/Calculate/MSP/MSP26119g11ba5ba30d0f800001c99baaib0a2c5ac?MSPStoreType=image/gif&s=20&w=496&h=198&cdf=Coordinates&cdf=Tooltips

same chart, yours just has more readable values.

Bitcoins are constantly coming into existence, gold isn't. Don't compare something physical that has actual permanent value to a digital constant that doesn't actually mean anything.

Zeth,

BTC will cease production at 21.000.000 (not a penny more, not a penny less)

So I guess gold miners are just digging up what, then? Gold that people before them buried?

Not true. There is a limit.

So only physical stuff has means something? Companies traded on stock market or wisdom don't mean anything and of course art like music or in PDFs, applications also don't mean anything?

What would happen happen if I'd encode my wallet so I can print it on paper? Would it be physical?

How does e = m * c² fit into this?

These are serious questions btw., they are not sarcastic. I am completely open and unbiased.

Gold is mined as well, what do you mean "coming into existence"? Nobody will pay $1500 for an ounce of gold which is somewhere in the ground, only an act of mining puts the price tag on the gold. Exactly same as with bitcoin.