Here's a fun calculation: There are 166,000 tonnes of gold in the world (source: World Gold Council). Each tonne consists of 32,150 troy ounces for a total of 5,336,900,000 ounces. Divide that amount by the eventual total number of bitcoin (21,000,000) and you get 254 ounces of gold per bitcoin. With gold at a US dollar value of $1,600 that would equate to $406,400 per bitcoin. 32150 x 166000 = 5,336,900,000 oz / 21,000,000 = 254 oz per 1 BTC or 254 x $1,600 gold = $406,400 per BTC Do I think a bitcoin will eventually be worth $406, 400? I have no idea...  What do you think? This calculation implies bitcoin completely replacing gold. I think that's unlikely. However, bitcoin will take market share from gold and other forms of money. And it will eventually be valued higher than gold due to its utility for commerce, it's decentralized nature, and its secure design (assuming we don't find any fatal technical flaws). So, I like to think in terms of bitcoin reaching parity with gold, which would put its value at half the figure you came up with (or ~$200,000/btc). But I think it will take at least 10 years to get there. My thoughts exactly. |
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The good thing with Bitcoin is, that it has enough advantages on its own to flourish regardless of everyone acting for its greater good. Bitcoin's value (ie the demand for them) can come from at least two sources: Bitcoin as a medium of exchange and Bitcoin as a store of value. If they are perceived more as a good store of value then there will be more hoarders and their demand will raise the price. At the same time, less BTC in circulation will limit their usefulness as a medium of exchange which lowers the demand from merchants hence lowering the price again. This in turn will make some hoarders part with some of their coins because they fear that they are not so good a store of value after all -> more BTC in circulation, more attractive to exchange them... Rinse, repeat. I really see such positive feedback loops built into the foundation of Bitcoin as its greatest quality. Despite all the flaws, imbalances and imperfections of human society and people's motives - they just work! You probably can tell that I'm in an optimistic mood today  +1 |
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This thread reminds me of Francisco's Money Speech by Ayn Rand: “So you think that money is the root of all evil?” said Francisco d’Anconia. “Have you ever asked what is the root of money? Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal with one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce. Is this what you consider evil? “When you accept money in payment for your effort, you do so only on the conviction that you will exchange it for the product of the effort of others. It is not the moochers or the looters who give value to money. Not an ocean of tears not all the guns in the world can transform those pieces of paper in your wallet into the bread you will need to survive tomorrow. Those pieces of paper, which should have been gold, are a token of honor–your claim upon the energy of the men who produce. Your wallet is your statement of hope that somewhere in the world around you there are men who will not default on that moral principle which is the root of money, Is this what you consider evil?" Continued:http://freedomschool.org/2010/01/17/franciscos-money-speech-by-ayn-rand/ |
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Here's a fun calculation: There are 166,000 tonnes of gold in the world (source: World Gold Council). Each tonne consists of 32,150 troy ounces for a total of 5,336,900,000 ounces. Divide that amount by the eventual total number of bitcoin (21,000,000) and you get 254 ounces of gold per bitcoin. With gold at a US dollar value of $1,600 that would equate to $406,400 per bitcoin. 32150 x 166000 = 5,336,900,000 oz / 21,000,000 = 254 oz per 1 BTC or 254 x $1,600 gold = $406,400 per BTC Do I think a bitcoin will eventually be worth $406, 400? I have no idea... What do you think? |
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Here's a fun calculation: There are 166,000 tonnes of gold in the world (source: World Gold Council). Each tonne consists of 32,150 troy ounces for a total of 5,336,900,000 ounces. Divide that amount by the eventual total number of bitcoin (21,000,000) and you get 254 ounces of gold per bitcoin. With gold at a US dollar value of $1,600 that would equate to $406,400 per bitcoin.
32150 x 166000 = 5,336,900,000 oz / 21,000,000 = 254 oz per 1 BTC or 254 x $1,600 gold = $406,400 per BTC
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Owners of bitcoin, or "hoarders", as some people call them, have to consume to exist. They must eat and support themselves. They cannot eat, wear, drive or live inside of bitcoin. Therefore, they will spend them when they need to. All this worrying about people "hoarding" is unnecessary and a waste of resources when one could spend that time, energy and talent creating and offering products and services that bitcoin owners would actually want to buy. People can continue asking for handouts but I wouldn't expect that to be a very profitable venture.
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It been pointed out to me that if everybody keeps hold of there Bitcoins in the hope that they become fabulously wealthy . Its not going to happen. Bitcoins wont be valuable until I can buy a book at Amazon or a burger at McDonald. Bitcoins Value is in the way it can be used.. So what about this. Is it fair to assume that most people on this forum have a few Bitcoins? Give some of them away. Get them into circulation. Tell people about this forum. Tell them to give some away. There are 33k members on this forum. Lets do the numbers People. What would happen to the BTC value (@Mt Gox) if over night the amount of people who held Bitcoins doubled. Im faurly sure it would cause it to change. It doable. Could I ask someone with good words to come up with a Cover letter that explains what Bitcoin is. How to get a wallet onto a computer . Simple things for Jo Public to grasp the concept P2P money. If your on this forum its safe to assume your fairly geeky and this is easy for you.. When I spoke to my brother who's in banking in Ireland (poor bastard) about Bitcoin he thought I gone totally mad. But its his birthday soon. Guess what he's getting for his birthday. 1 shiny freshly hashed Bitcoin. Maybe I'm Dreaming . Tell me if I am. Bitcoin are Revolutionary Pay it forward It will come back. Here's an easy quick-start training on bitcoin for the newbie: http://www.bitcointraining.comAs far as giving some bitcoin away: I suggest offering something of value in exchange for bitcoin. Give bitcoin holders a reason to spend. FREE has no value. If you give somebody something for free it is usually not appreciated. |
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The problem you run into is finding a trusted, centralized authority who would back the coin by gold - fail because you lose decentralization. Having individuals back it leaves you with no guarantee they will perform. At least with the current system, bitcoin has its own value based upon its unique features, qualities and benefits. These features, qualities and benefits are valued enough by people like me who will sell you their gold for your bitcoin. Trader Steve http://www.GoldStarBullion.com |
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Made updates to original post.
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UPDATE: We are currently only shipping to the U.S.
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Nice. Do you have the ability to break it down by area and additional categories - in other words, can you make it look and act like Craigslist? That might make it even more marketable - not sure though. Great idea!
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For the record, I believe in having a limited supply of bitcoin. If bitcoin was ever changed to be an inflationary money, myself and many others would simply stop using it. We'd probably fork the block chain and refuse to download the latest release. I would venture to predict that the new, inflationary, version would die a quick death. Just my 2 bitcents. Trader Steve http://www.GoldStarBullion.com |
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why did the bitcoin leave your wallet?
because, your wife bought your hillbilly ass some alpaca socks.
LOL |
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Shameless plug: bought and sold several ounces of gold and silver using bitcoin this week. Helping to show folks that bitcoin is "as good as gold".  Also, tipped several people who've made great contributions to the community - articles, videos, etc. Trader Steve http://www.GoldStarBullion.com |
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Update 6/1/12: I no longer own the following domains: GoldStarBullion.com and BitcoinTraining.com
Please view or leave feedback for me in this thread.
Before leaving negative feedback please pm me and allow me the opportunity to make sure you are 100% happy.
Thanks!
Trader Steve
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Very nice! What's your twitter handle?
Trader Steve
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The beauty of what entrepreneurs can do in the Free(er) Market that is bitcoin. Love it! I can only imagine what new bitcoin innovations we'll see coming out of the garages of entrepreneurs over the next 30-90 days...
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Curious if there's enough spread for profit after fees to sell on Mt.Gox and buy on TradeHill. Prices at this instant are: Mt.Gox: $15.44 and TradeHill: $15.22
Trader Steve
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Thanks for selling gold and buying BTC. that's exactly the opposite I want to do. I'm continue selling BTCs while mining them. Sometime next month or so I'll have my rig investment paid off (hopefully). Then I'll continue to sell the additional earned BTCs I mine to buy gold would you like to trade BTC for gold with me? i have a few ounces left. where do you live? seriously.... PM me. And if you clean out cypherhdoc's inventory and need more I have plenty here: http://www.GoldStarBullion.comTraderSteve |
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