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Title: Bitcoin vs Precious Metals Post by: jonanon on August 05, 2014, 06:54:02 AM I'm a firm believer of sound money, especially gold/silver just wondering how people think this compares to Bitcoin. I do have a few BTC but only really to take advantage of a price move up so I can get more metal. I don't like the intangible nature of Bitcoin and not being so tech savvy it would be a concern having a lot of wealth stored in it. Ideas?
Title: Re: Bitcoin vs Precious Metals Post by: hua_hui on August 05, 2014, 07:06:01 AM true! The majority of people still doubt the value of Bitcoin and still prefer the tangible assets gold/silver, estate, fiat etc. The virtual e-currency cannot be seen and touched, the price is too volatile. Holding BTC is too risky.
Title: Re: Bitcoin vs Precious Metals Post by: blatchcorn on August 05, 2014, 07:12:59 AM Bitcoin in a paper wallet is more 'real' than a dollar in every sense of the term
Title: Re: Bitcoin vs Precious Metals Post by: keithers on August 05, 2014, 07:52:19 AM The idea would be to get as much as possible of each so that you have a diversified hedge against inflation. Here at the forums, most people will prefer BTC over gold, just as they would probably prefer gold on the precious metals forums
Title: Re: Bitcoin vs Precious Metals Post by: LiteCoinGuy on August 05, 2014, 07:53:45 AM I'm a firm believer of sound money, especially gold/silver just wondering how people think this compares to Bitcoin. I do have a few BTC but only really to take advantage of a price move up so I can get more metal. I don't like the intangible nature of Bitcoin and not being so tech savvy it would be a concern having a lot of wealth stored in it. Ideas? if you like gold and silver, you should also hold bitcoin and litecoin. Title: Re: Bitcoin vs Precious Metals Post by: Naruto.me on August 05, 2014, 08:25:09 AM First of all bitcoin is currency and Precious metals (gold and silver) is money.
But the problem of gold and silver is they are good at store of value but difficult in actual daily use. Imagine what will happen if tomorrow people use gold and silver to buy daily goods. Assume today 1g gold = 41.5 USD and all shop accept gold to purchase goods. Goods USD Gold(in gram) -------------------------------------------------------------- 1. Eggs (1 dozen) 2.18 0.0525301204819277 2. Milk (1 Lite) 2.72 0.0655421686746988 etc....... Title: Re: Bitcoin vs Precious Metals Post by: jonanon on August 05, 2014, 08:34:17 AM First of all bitcoin is currency and Precious metals (gold and silver) is money. But the problem of gold and silver is they are good at store of value but difficult in actual daily use. Imagine what will happen if tomorrow people use gold and silver to buy daily goods. Assume today 1g gold = 41.5 USD and all shop accept gold to purchase goods. Goods USD Gold(in gram) -------------------------------------------------------------- 1. Eggs (1 dozen) 2.18 0.0525301204819277 2. Milk (1 Lite) 2.72 0.0655421686746988 etc....... That's a good point but I would suggest gold for larger purchases say over 1g and silver for smaller purchases. I do like bitcoin but I don't like the way that other cryptos can be produced at will - no one can make a new gold or silver. Of course it comes down to letting the market decide but that leaves things too much down to luck - holding the right crypto at the right time. Title: Re: Bitcoin vs Precious Metals Post by: Naruto.me on August 05, 2014, 09:02:51 AM That's a good point but I would suggest gold for larger purchases say over 1g and silver for smaller purchases. I do like bitcoin but I don't like the way that other cryptos can be produced at will - no one can make a new gold or silver. Of course it comes down to letting the market decide but that leaves things too much down to luck - holding the right crypto at the right time. Yeah, it is true. It is about luck ( in the beginning). But now I think is about liquidity. Why bitcoin is more valuable that other crypto is how easy it can convert to other asset/currency. And it cannot be change very easily. Just like people preferred to watch video in YouTube , it will take lots of effort to change the majority. When compare with gold and silver , crypto-currency is a very risky market and is still in early development. That is true. Title: Re: Bitcoin vs Precious Metals Post by: Mr Tea on August 05, 2014, 09:13:23 AM They're compeltly different and both serve their purposes. Obviously gold has intrinsic value and is a precious metal, but bitcoin is far better as a currency or to be transferred to people.
Title: Re: Bitcoin vs Precious Metals Post by: waldox on August 05, 2014, 09:25:40 AM i invest in both physical metals and bitcoin
they both are similar but bitcoin has more upside in the 15+ year horizon compared to physical metals Title: Re: Bitcoin vs Precious Metals Post by: phillipsjk on August 06, 2014, 06:37:41 AM I'm a firm believer of sound money, especially gold/silver just wondering how people think this compares to Bitcoin. I do have a few BTC but only really to take advantage of a price move up so I can get more metal. I don't like the intangible nature of Bitcoin and not being so tech savvy it would be a concern having a lot of wealth stored in it. Ideas? BTC's intangibility is also it's strength. Gold's tangibility is also it's weakness. I believe that Bitcoin is honest money. One thing that convinced me that Bitcoin is here to stay is that it is it is harder to counterfeit than gold (http://usnews.nbcnews.com/_news/2012/09/19/13963728-counterfeit-gold-bars-discovered-in-new-york-city?lite). It exists in the mathematical domain: which means given the transaction ledger, you can prove whether or not a specific "coin" has been spent or not. If you want to do transactions electronically, Bitcoin is better. Gold-backed payment systems are by definition a fractional reserve (1/1 is a fraction ;) ) They also represent central points of failure (https://en.wikipedia.org/wiki/E-gold). Quote from: Wikipedia However, in its actions from 2006-2008 the U.S. Treasury Department in conjunction with the United States Department of Justice stretched the definition of money transmitter in the USA Patriot Act to include any system that allows transfer of any kind of value from one person to another, not merely national currency or cash. Using this new interpretation they then proceeded to prosecute the USA-based gold systems, E-gold (and later e-Bullion) under the USA Patriot Act for not having money transmitter licenses, even though these companies had previously been cooperating with regulatory authorities and told they did not fall under the definition of money transmitter. The charge of not having a money transmitter license was eventually dropped against e-bullion. Several years later FINCEN further expanded this definition to apply to foreign companies allowing US persons to open accounts, which forced the Jersey based Goldmoney.com to suspend the ability to transfer value from one holder to another in December 2011 If the expected collapse of the US dollar knocks out large portions of the Internet, Bitcoin may not be worth the paper it is printed on. In that case, having actual physical metal may be more useful. I have seen speculation that guns and food may be more valuable than shiny metal though. Title: Re: Bitcoin vs Precious Metals Post by: jonanon on August 06, 2014, 07:34:46 AM If the expected collapse of the US dollar knocks out large portions of the Internet, Bitcoin may not be worth the paper it is printed on. In that case, having actual physical metal may be more useful. I have seen speculation that guns and food may be more valuable than shiny metal though.
[/quote] Perhaps in the US guns may have more value but in the civilised world I don't see this being the case lol ;D Title: Re: Bitcoin vs Precious Metals Post by: desired_username on August 06, 2014, 09:24:16 AM If the expected collapse of the US dollar knocks out large portions of the Internet, Bitcoin may not be worth the paper it is printed on. In that case, having actual physical metal may be more useful. I have seen It doesn't matter at all. If basic utilities won't be restored then you'll have other things to worry about. On the other hand, it's easy to restore bitcoin and continue like nothing happened. None of the other payment systems can do that. Title: Re: Bitcoin vs Precious Metals Post by: Sindelar1938 on August 06, 2014, 10:55:57 AM You need to have exposure to both asset classes
I hold some physical gold and of course cryptos Title: Re: Bitcoin vs Precious Metals Post by: Daniel91 on August 06, 2014, 11:37:50 AM In the time of crisis in the past gold always was safe solution for investors, because usually at such time his value increase.
It's still question what will be value of Bitcoin at such time. Of course we all hope and wish that everybody choose Bitcoin as main alternative to paper currencies, new replacment for dollar, but this is still not the case. Title: Re: Bitcoin vs Precious Metals Post by: Soros Shorts on August 06, 2014, 12:09:13 PM Perhaps in the US guns may have more value but in the civilised world I don't see this being the case lol ;D If there is a significant collapse of government guns will have a lot of value. It does not matter whether they were illegal/socially acceptable or not prior to the collapse.Title: Re: Bitcoin vs Precious Metals Post by: o_o on September 22, 2014, 08:14:42 AM I don't see that much of a relationshio between btc and precious metals, most of the people who store gold for the sake of it's stability absolutely unlike BTC 30% down in a day. Btc is more like stocks on that side.
Title: Re: Bitcoin vs Precious Metals Post by: Oscilson on September 22, 2014, 09:34:51 AM Both are store of value. But you can exchange BTC for goods easier.
Title: Re: Bitcoin vs Precious Metals Post by: shawshankinmate37927 on September 22, 2014, 09:44:17 AM I'm a firm believer of sound money, especially gold/silver just wondering how people think this compares to Bitcoin. I do have a few BTC but only really to take advantage of a price move up so I can get more metal. I don't like the intangible nature of Bitcoin and not being so tech savvy it would be a concern having a lot of wealth stored in it. Ideas? Bitcoin is a new, experimental paradigm in money. Only hold what you are comfortable with. Title: Re: Bitcoin vs Precious Metals Post by: Mr Tea on September 22, 2014, 10:54:51 AM I'm a firm believer of sound money, especially gold/silver just wondering how people think this compares to Bitcoin. I do have a few BTC but only really to take advantage of a price move up so I can get more metal. I don't like the intangible nature of Bitcoin and not being so tech savvy it would be a concern having a lot of wealth stored in it. Ideas? Precious metals at least have intrinsic value and people will always assume they have more worth because they physicalally exist, but from an investment standpoint I think there's a much greater risk for big profits with bitcoin. Title: Re: Bitcoin vs Precious Metals Post by: Bitcoinpro on September 22, 2014, 11:03:53 AM Gold n Silver is way to inferior to Crypto, it's not even in the same ball park.
Title: Re: Bitcoin vs Precious Metals Post by: sandykho47 on September 22, 2014, 11:22:16 AM The difference is people accept bitcoin for payment, but who would accept gold/silver for payment ??? (And how you split the metal ;D)
But, bitcoin & precious metal have good point / bad point I prefer use metal for decoration & investment And i use bitcoin for payment & investment But, i don't get how you compare bitcoin & precious metal. That's very different subject ??? |