Uganda’s gold discovery: What it could mean for crypto !!!

[Leviathan.007]

Surly discorvering gold in a country won't change things a lot. The most important thing you said is about gold having a limited total supply, the thing we know about it is the total supply is pretty sure limited for gold but that's not very clear like bitcoin, when you are talking about bitcoin you know there will be only 21M bitcoins in the world and that's not going to be changed about bitcoin. But on the other hand, we know the total supply of gold is also limited because even if they discover all the gold mines in the world the amount is still limited but that's better to say that's an unknown limited amount of gold total supply.

[1715082690]

1715082690

[NotATether]

Here's what it will mean to crypto - absolutely nothing.

The majority of that gold will just be sold to China anyway, in exchange for developing infrastructure in Uganda (China has historically helped African countries with this model).

[DVlog]

Is gold becoming inflationary? Can Bitcoin replace it as a store of value due to its scarcity and reliability? Are Uganda’s numbers implausible? Questions arise.

Gold is inflationary from the beginning. It has an unlimited supply on earth but the problem is it's not that easy to find that's why it's so much valuable. Besides that its use-case in the semi-conductor industry is massive so the demand never drops.

The terms replace will not be appropriate in here because BTC and gold are two different types of the asset class. They have different variables and definitions. There will be people who will never accept BTC as a safe place for a store of value and some will prefer BTC more than gold. But some people will use both to store values and this number will be higher. None of the assets from those two will lose all of their interest from people over time.

[popeye95]

Well, one more thing shows that gold is always needed. No matter if more gold mines are being found around the world, technology to dig deeper to explore all the earth's surface for a new gold mine. Can't compare to crypto if somehow the max supply is found to have more than everyone thought.

[Anonylz]

I doubt such news can have a direct impact on the price of gold at least not for now. The supply may be unlimited but it seems to be Scarce because of it's value and demand, assuming this news is 100% authentic it won't dip the price of gold since big organizations will just buy them up. Many people still sees gold as the best safe haven because of its very low volatility nature.

[Smartvirus]

I think the issue with if bitcoin could serve as a store of value have never been the problem. Bitcoin is more than capable but the issue is, Bitcoin not being centralized as the coin own and flown in the market cannot be controlled.

Gold on the other hand could be subject to some regulations aside from the much that would find there way into the black market but but at that, its got an edge to acceptance than Bitcoin when it comes to serving in the capacity as a reserved currency. I don't see Bitcoin gaining in on this one just yet.
Perhaps things might change in the far future and by then, bitcoins own by individuals would be so priceless.

[2stout]

If true, this could make bitcoin more attractive as a store of value over gold.  However, I'm sure they will ration this out as to not flood or destabilize the gold commodities markets like they do with diamonds, i.e., artificial scarcity that keeps the prices inflated.

[Hydrogen]

Apple co founder Steve Wozniak remarked upon science devising better methods to detect and extract gold from the earth's crust. As science progresses the state of gold mining will progress. While the rate of bitcoin mining will essentially remain the same, no matter what progress is made with moore's law. That is a great overview of supply side contrasts separating BTC and precious metals.

It is also possible that asteroid mining could someday become a reality. With asteroids containing many metric tons of precious metals being harvested to increase the supply of gold, silver, platinum and precious metals on earth.

Gold and precious metals today are not great tokens of exchange as they cannot be stored and shipped easily in larger quantities. They also cannot easily have fractional amounts shaved off ingots of gold or silver to pay for a cup of coffee and other retail expenses. The increasing price of oil, shipping and transportation only contribute to these disadvantages.

Uganda is not the only nation to have recently discovered precious raw material reserves. It is also claimed that afghanistan contains trillions of dollars worth of raw materials. The discovery of these deposits does not guarantee an industry will arise which will harvest resources. It seems that the current trend is shifting towards non exploitation of reserves, rather than the opposite.

[NeuroticFish]

Here's what it will mean to crypto - absolutely nothing.

The majority of that gold will just be sold to China anyway, in exchange for developing infrastructure in Uganda (China has historically helped African countries with this model).

Sooner or later the countries will diversify their reserve assets. So more gold can drive gold price down, but may also have an indirect effect on Bitcoin (very long term) price too.
Everything counts in large amounts.

[globalpain]

If true, this could make bitcoin more attractive as a store of value over gold.  However, I'm sure they will ration this out as to not flood or destabilize the gold commodities markets like they do with diamonds, i.e., artificial scarcity that keeps the prices inflated.

Looks like they're going to do the same thing they did before with Diamonds,
because if the commodity market becomes chaotic maybe it will create a domino effect and it will become a more complicated problem

[stompix]

Nothing.

Muyita said an estimated 320,158 tonnes of refined gold could be extracted from the 31 million tonnes of ore.

The highest grade mines in the world roughly get ~20-10 grams per ton.

So 31 million tonnes of ore will get you 310 million grams, which is 310 tonnes not 320 000.
Unless someone has magically discovered a mine that contains ore with a quality of 1000x more than anywhere in the world, then the next most possible thing is somebody put a , instead of a .

So that gold in Uganda is just as real as the prince in Nigeria.

[bestcoins1]

If true, this could make bitcoin more attractive as a store of value over gold.  However, I'm sure they will ration this out as to not flood or destabilize the gold commodities markets like they do with diamonds, i.e., artificial scarcity that keeps the prices inflated.

Precious metals such as Gold and Diamonds are expensive not only because of artificial rarity, but also because they are so hard to find that there is no basic material to process and manufacture as many people want. So that's another factor that makes Gold and Diamonds more expensive now, and I think it's very different from Bitcoin which has a known supply that Bitcoin is expensive just because lots of investors are buying and holding it.

Looks like they're going to do the same thing they did before with Diamonds,
because if the commodity market becomes chaotic maybe it will create a domino effect and it will become a more complicated problem

Complicated in what way? Any precious metals market will not become chaotic under the current conditions, even if it can be chaotic only in a very short time, and it will not be the same as the crypto market which is currently in turmoil.

[buwaytress]

So 31 million tonnes of ore will get you 310 million grams, which is 310 tonnes not 320 000.
Unless someone has magically discovered a mine that contains ore with a quality of 1000x more than anywhere in the world, then the next most possible thing is somebody put a , instead of a .

Something obviously missed in the reports, and sounds more plausible, because to find the same amount of actual aurum that's on its own 50% more than what the entire world produces definitely sounds far-fetched.

Though, as philipma notes earlier, even if true, that gold spread out over 30 years (which is still pretty fast) won't do much to budge markets, given there already has been for years supply unable to meet demand.

So that gold in Uganda is just as real as the prince in Nigeria.

Wait... so I'm not getting double my Bitcoin back from the secret bastard son of the late Sani Abacha?

[mindrust]

More gold discovered means there will be more gold around and naturally one would expect the gold prices to come down. It has nothing to do with bitcoin or crypto in general. Congratz to the Ugandanian people if the news are true. Hopefully there isn't a corrupt government ruling Uganda so the Ugandanian people will be able to take their share from this newly found wealth.

Bitcoin and gold can coexist. It don't have to be one or another. Both will have their spot.

[Ucy]

If you want to fix this (the inflationary problem) just return to Gold standard, or explore more uses for Gold that create demands. Excess supply could be used as currencies.. . A coin of gold should really be real/pure gold and very valuable.

[crwth]

There's a big difference between Gold and BTC, but in terms of the function it gives to people, I think it's quite the same. Being a store of value makes it valuable to the people who want to keep the value of their money and possibly increase their wealth with the increased price of the said asset.

If we are talking bout the influx of possible new money coming in because of the gold, it could be an influx of cash.

[Smack That Ace]

I also saw this news and there was a post about it, but need to know if this is just a one-sided statement by Uganda or if the world gold association has confirmed this information is accurate or not.

In fact, gold and Bitcoin are two assets that we need to hold, let's diversify our portfolio to minimize risk and we will use each asset for each purpose as needed. Both are very good, but if I had to choose one, I would choose Bitcoin.

My article on gold and bitcoin recently: Will you be in favor of Gold or Bitcoin !!


regards

Duke

[jostorres]

Well, one more thing shows that gold is always needed. No matter if more gold mines are being found around the world, technology to dig deeper to explore all the earth's surface for a new gold mine. Can't compare to crypto if somehow the max supply is found to have more than everyone thought.

Yes, not only as an asset use or can be used for paying but the items on traditional events like wedding, Olympics, and others, requires a gold on them. While crypto on the other hand is just a new type of currency which is not necessarily needed because we already have a lot of currencies and digital payment methods although there is only one feature that makes cryptos stand out and that is most of them are decentralized.

I think they are the first in terms of it. Meanwhile, Uganda's gold discovery could mean a big thing for the cryptos which has a limited number of supply (btc for instance). This makes them more valuable over gold.

[og kush420]

I also saw this news and there was a post about it, but need to know if this is just a one-sided statement by Uganda or if the world gold association has confirmed this information is accurate or not.

In fact, gold and Bitcoin are two assets that we need to hold, let's diversify our portfolio to minimize risk and we will use each asset for each purpose as needed. Both are very good, but if I had to choose one, I would choose Bitcoin.

My article on gold and bitcoin recently: Will you be in favor of Gold or Bitcoin !!


regards

Duke

I hope and wish the Uganda remain safe from outside invaders - if really the goldmines are discovered there.
But if it is choice between gold and bitcoin. .it's a difficult thing. Maybe I would get the gold and sell it and then quickly invest in some local business.

[darkv0rt3x]

I don't think an inflation in gold supply can happen like that just because a new huge mine was found! After all, the ratio of new gold entering circulation is quite low and that's one of the reasons gold can keep volatility under (relative) control!

Despite the fact that usually market defines the flow of things in this regard, meaning that when demand greatly increases, man will find a way of increasing prouction/extraction/manufacturing to satisfy the demand, but in the case of gold, I think that can take consierably more time than we think, so I don't expect that the ration of new gold vs gold in circulation can raise so that price can change by that much.