Bitcoin Forum

So, gold and cash have some good and some bad properties.

Gold:

good - only a limited amount exists, hence protection from inflation
good - has intrinsic value (at least to some degree)
bad - difficult to transfer, divide, verify that it's authentic, hence higher transaction costs

Cash:

good - you can give it to anyone anonymously. It just works. i.e. the definition of "currency". Near-zero transaction costs
bad - loses its value due to inflation

In a sense, bitcoin is the ultimate combination of the good parts of gold and cash. It has the intrinsic value of gold (nobody can create more of it, so the value is permanent) combined with the intrinsic value of cash (near-instantly transferable to whomever in any amount you wish - as an extra bonus, it works worldwide!).

Of course, there is the risk that bitcoin is worth nothing tomorrow. But how big is it?

I'm going with Twain: "Buy land. They're not making it anymore." At least by the year 2140... (Imagine if you got in when they were making the first patches of land)

Speaking of anonymity, I hate it when Radio Shack doesn't want to deal with me anonymously.  I'm waving cash at them and they don't want it.  Last time I was there they literally refused my cash because I wouldn't give them my cell phone number.  No skin off my back, I just ordered the parts I needed on line at a fraction of the price at Radio Shack.  I just had to wait a few days for shipping.

As far as gold goes:  Gold is fiat.  It has low use value, it's value comes from people telling you it has value, same as USD or Euros or Pesos.

I agree with you on the land thing.

On that note, wasn't Japan trying to build man-made islands?  Maybe it's not too late to be a land owner ;D

http://en.wikipedia.org/wiki/The_World_%28archipelago%29

Get digging :D

You guys might want to check out Cypherdoc's thread (last page of it (https://bitcointalk.org/index.php?topic=68655.4500)).

What about the religious point of view - that growth is not a good thing. That gold is good because it is stable and does not grow like Bitcoin?

Just sayin' ;)

The Church of Satoshi would like to have a word with you.

Gold is "stable" because it is old.  Bitcoin grows because it is still very new.  I put stable in quotes because compared to most assets, gold is very volatile.  If bitcoin makes it to the size of the gold market, it should be much more stable.

Just sayin' ;)

The problem is that physical silver coin is not ever going to be used as currency ever again, no matter what happens. Period.

1. We are in a digital age and no one is going backwards, no matter what happens. Period.

2. When global collapses ensues such that you think you might be able to use metal coinage, what actually happens is as follows.

• As Fernando “FerFAL” Aguirre points out (http://ferfal.blogspot.com/2010/11/cash-and-precious-metals-their-role.html), only the currency that can be exchanged external to the crisis area has value. People are not bartering silver dimes, rather if you had German DMarks in Bosnia or USA dollars in Argentina, then these were accepted and liquid. Gold coins were much more difficult to liquidate because there is a funnel of few dealers that can't actually exchange them for the externally liquid currencies of USA dollars.
• As Dmitry Orlov points out (http://cluborlov.blogspot.com/2014/12/are-americans-prepared-for-soviet-style.html), everyone's priority is on food, security, and transportation. Direct trade of these is more valued than some metal which can't be traded for these needs, because these metals are not liquid.
• Armstrong has also explained that gold and silver only have a value for as long as the collapse is not total and there is still an external market. During Dark Ages such as in Japan or fall of Rome, the gold and silver become entirely illiquid (is buried in the ground) and only food, guns, fuel, and alcohol+cigarettes become money.

See the link below to the description of the war in Bosnia:

---

Actually doesn't make sense at all. You want to be buying bullion that can be liquidated if the collapse doesn't go extreme. Otherwise you don't want to be buying precious metals at all.

This is why crypto-currency is going to kick ass.

I would have maybe some 1 oz gold coins for a desperation situation, knowing full well that anyone that takes them in payment is only going to give me 1/10 their "official value" (or original value) in an apocalyptic collapse scenario.

Must better I have dollar bills and even better some crypto-currency, especially some that I am able to use anonymously if needed.

I am not betting on the apocalyptic collapse scenario, because if we go there then what I really need is to be self-sufficient. No amount of monetary currency savings can help me. I would need guns, fellow community, and ability to survive off the land.

Please stop talking nonsense about silver coins as an investment. It is stupidest thing I have ever once thought was true until I woke up from being a dumb ass tinfoil hat.


So buy gold bullion.


Peak oil is propaganda lie that Rothschilds has been funding same as the Man-made global warming lie (https://www.armstrongeconomics.com/tag/global-warming/).

It is not true. You'd only need the flow of oil out of the ground of a medium size river, to supply the entire world's support of oil. The USA has risen to the #1 global producer over the past decade due to the discovery of fracking.

Besides we are moving away from carbon-based fuels and generation via nuclear energy, solar, hydroelectric, and geothermal. New technological breakthroughs in these areas plus battery technology will obsolete carbon fuels. Also we are moving towards living in high-density cities with mass transportation instead of one human per vehicle. Our vehicles can also improve efficiency by 100 - 200%. The technological innovation whirlwind is underway.

There is no strong case for silver. It is more volatile than gold, less liquid, and there is no supply crunch problem. The precious metal promoters are fooling you with lies and propaganda.


There is no solution to the inviolable (insoluble) tyranny of the power-law distribution¹ and the Iron Law of Political Economics (http://esr.ibiblio.org/?p=984) power vacuum.

Sorry just accept the fate of the human race.

That unfortunate fact won't make gold and silver viable again, just because Bitcoin isn't a panacea. There will never be a panacea. Give up.

¹ A. Dragulescu and V. Yakovenko. Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States.

Iamnotback makes some very good points about currency above, but then suddenly chooses to say


i.e.
"oh and by the way, please ignore everything i say".

Why?  Just make your points without also saying "and the sun rises in the west".  

The bad side of bitcoin is it is limited also. But there is good in it if you are the first owners. Imagine populating the bitcoin community with each one having a good amount of bitcoin and just stacking it up. Where would other ones who want it will get some?
It is like the same with gold mined and being sold. We wait for the miners to sell theirs.

I will agree with the land buying first. But it is just too difficult to get some because of its price.

Though gold is something that cannot be produced like money or fiat but it is not really limited like bitcoin, because there is still a lot of gold inside the land that has to be taken out later on, so the amount of gold can grow with the time but bitcoins would remain the same as it has a limited amount.

if i have to say what is bitcoin according to this topic then i will simply say cash+gold=bitcoin(bit-digital coin-money). the main diffremce on these three mode of payments are amount of total coin like in bitcoin there are only 21million bitcoin but in case of gold its unknown but still its fixed.but money can be generated more and more

I think you don't need to compare cash since its already use by people fiat or money or cash. gold maybe we can compare it in bitcoins .. but its more good to invest in bitcoin because i already experience of gaining profit just to hold because of fast price increase unlike gold that it takes a long time before you can see your profit. .

That depends on what you mean by hackable.  There are those that print out billions of new dollars worth of cash at almost no cost.  You could consider that a hack. 

If ever we will have a war again , gold will surely replace cash for trading items you want because cash is only a paper that some country putting some value to it but gold has it value even on early days .

But gold is best commodities anyway.. no one is good like gold

- diamonds isnt good (and value is bigger)
- bitcoin isnt good (because is volatile)
- other materials, silver, copper, is low ...

another one comparable is platinum, but gold is gold

I think cash can be still hackable because some atm cash can be hackable.. bruteforcing or they are using a atm fake card just like a heard news that there is a device from thieves using this atm card they can be fake from their victim and cashout the money..
Gold yeah its not hackable and i think bitcoin too is not hackable .. just make sure that we can increase our security..

I disagree that only a limited amount of gold exists and that that's why it is protected from inflation. Who knows how many places which are still unexplored could contain gold. Cash is out of the question in that regard. So Bitcoin is the best like you said.  :D

Cash can buy anything, no limit at all, while bitcoins have. the disadvantage of bitcoins was if there is no connection, how can you access your wallet? unlike if it is already converted into cash, you can. when it comes to Gold. Gold prices also fluctuates, its price was depends on the exchange rate of dollars. Gold can be use to pawn or sell at higher price. I still want to invest on bitcoins than gold.

Gold ofcourse does not have a limited amount, there can still be a lot of gold inside the earth or in the sea which are not discovered yet, while bitcoin has a limited amount because it is something that cannot be generated anymore nor there are any more bitcoins to be discovered.

I agree, the cash right now mm single use anywhere. A Bitcoin - this alternative currency. Everyone chooses himself than it is convenient to use

if that so,even bitcoin have the disadvantages but bitcoin will be suited well to be an alternative currency,and if it was an alternative currency in the digital world it do be a perfect option,cash can't be spent on digital world but bitcoin can,both have disadvantages but also have an advantages which beneficial for both

I agree with this regarding  on the  amount   of  each which  they  do really differ  hence  a digital currency and a  natural  mineral  can be found   on  earth  do really  have  differences.  Bitcoin  is  limited and  gold  is  unlimited  even  they have differences  they still have  smilarities  like   increasing price  and  also  a  good  investments.

The risk that Bitcoin could be worth nothing tomorrow is little. There's has been a period in which the price of Bitcoins has fallen from USD 600 to USD 120 and this could happen again too if unforeseen circumstances exists, but this could happen with stocks of large businesses and currencies of different nations as well. Also, Bitcoins value can never drop dead to USD 0, so it'll always have some value but can get invaluable if it drops below some amount, during which many people would sell, few brave ones would purchase in the hopes of future increase in price..etc.

Also, gold has less liquidity compared to Bitcoins, but it's a tangible asset that anyone can hold and wear as ornaments. It has an appeal for the rich and higher middle class, but Bitcoins shouldn't be catered just for such people, it's focused on remittances for the poor and the poor people who have less access to technology and banks are far from reach.

I totally agree with op about the land, land is a good investment, but the procedure to obtain potential land its very difficult, and it cost a lot, so for a medium economic person bitcoin and gold will be more reasonable investment, but for now i more suggested to save bitcoin as investment

I live in a country where bitcoin is not yet much popular and thus there are almost near to zero offline merchants (at least in my town) so keeping my funds in bitcoin is not wise idea for me unless I am investing in it. Investing in gold sounds good but still, I see it as a dead investment (because you have to rely on price increase as there are no returns once invested). Now, Cash is only option for day to day transactions so I conclude that,

Cash is good for day to day transactions (including digital wallets funds).
Gold is good for keeping funds secure (any price increase is bonus).
Bitcoin is good for long term investment (also we can earn interest, use it as cash etc).

yes that is fact that no one know that how much gold still can be explore, and no one know the present amount of gold that how much gold is present int this world, as gold is too much stable and there is a little fluctuation in the price of bitcoin, where cash is limited and centralize currency, therefore to me the best option is bitcoin which is decentralize a universal currency which can be use equally in all over the world. but the user of bitcoin are still very low still hope that a time will come when all the people of the world will be using bitcoin.

Cash is good all the time we can use it to deal in every day use like we are using it in every day buying foods and needs so that we can live with cash in gold is good investment too when you have golds to get and invest it to get money and bitcoin i use this in daily trading i can really make profit here.

Nobody started with empires but with small lands. You just start off with a small land and you will then find out how to do business with it and how to 'multiply' your land. I think cash should be on the last place, and Bitcoin is right in the middle. Why? Because cash is not anonymous and will become worthless in case of a crisis, while Bitcoin is anonymous and the price will rise during a crisis (see India today). Gold instead is the only currency that can NOT become worthless whatever happens, its price will only keep rising and is the safest option to rely on. Because it's heavy, there is not even needed much space to hold millions (probably a bag of gold for a few million bucks).

I agree that the value of Bitcoin won't go down to zero, this is next to impossible under any circumstances. It has already been adopted and for good reason - it's incorruptible and fully decentralized. In theory, gold is very similar in those aspects, but it is different in the volume of its supply as compared to bitcoin's as we know that it's supply is totally final.

I would say that cash is the best, because you will convert gold into cash, you will convert bitcoin into cash. And everything that we are transacting are always with the use of cash. Because those merchants who are accepting bitcoins are still few in the cycle and as well as the people who are accepting payments with the use of gold.

It is not important to buy an empire in order to start real estate business, you can start off with small and good to be bought lands at first, and with the time you can increase the limits of what you are doing, surely you wont be able to buy big lands as you may do not have the capital required.

What you are telling is true for daily users but if you have bitcoin then the price is also increase and when ever you want to convert it to fiat currency you will get more then buying price, so i will prefer for bitcoin as when ever i am in need of fiat currency i can easily convert and enjoy my life

Cash is always exists all the time and we need cash for our physical needs and everytime we need in daily living if we don't have cash then work for another cryptop like bitcoin im a student and i can really say now that i am earning from this currency and gold i have gold too but i don't invest it i just hold it and sell it for the right time.

I will go with bitcoin because always wanted to invest and it is only here where I have experience success. I have cash but only up for my daily expenses and expected expenses but most of my savings are in investment and big portion of it are in bitcoin.

Im more of a gold. Gold is one of the precious metals on earth. It is safer now to have gold than bitcoin and cash. Because of economic crisis, cash are unstable as well as bitcoin. Gold is more stable than other two. Bitcoin for me is good for investment and cash for buying. For long term for me is gold.

Yes, gold is indeed harder to work with than cash. And yet it passed the test ot time, which is a big plus. As for cash, another bad thing about it is that you can just accidentally burn it or spoil in some other way, because the material is thin. And you are also not aware who else has touched it, so there is a hygiene problem there as well.
As for Bitcoin, than you can't spoil it accidentally and are not very likely to lose it. And yet it is not very stable and the transaction costs are between gold and cash.

Just watched few episodes of money vs currency https://www.youtube.com/watch?v=DyV0OfU3-FU

According to which money is store of value where as currency is just worthless papers whose purchasing power keep decreasing.

Money = gold, silver and bitcoin (however in documentry bitcoin wasn't discussed)
Currency = cash (fiats)

Better to store Gold and Bitcoin rather than saving retirement fund for future in cash.

Gold come first as medium of exchange, so no doubt of how precious it is.
Bitcoin consider as digital gold and have higher price and still increasing.
Cash, we use it in daily basis and can't separated with our life yet.
So, it's better to have all of them as each has it own advantages.

I prefer to save my investment in gold and bitcoin, for shorter term i will save bitcoin, for longer term i will save gold, actually bitcoin is a good investment but for a longer term i afraid there will be a problem like banning, so it is safer fro me to keep my investment in gold, because there is no way gold being banned

Gold and bitcoin are both investment so you can have that for long term if you have the capacity to do it, meaning you have the capital to ensure you can buy gold and at the same time to secure it, I do not have that capacity actually but I am willing to invest with bitcoin as it does not require much investment.