Bitcoin to be pegged to gold

[nuff]

I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.

Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.

So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?

[rebuilder]

I suspect if you find a way of pegging an asset to another, unrelated asset without invoking authority, you'll be in the running for the Sverige Riksbank Prize in Economic Sciences.

[TrollinU]

I don't think Bitcoin and gold need to compete with one another, that for Bitcoin to rise gold has to collapse. I think both of them need to be on parity of each other, in this case Bitcoin to be on parity with gold. Bitcoin and gold share very much the same fundamentals, both are a store of value of deflationary nature against the inflationary fiat.

Actually gold really isn't worth as much as it is now but it really doesn't matter, people just want something that does not lose value to back against fiat. ¹Bitcoin is the digital equivalent of gold. Just like how money evolve to being digital, mere numbers on a computerized banking system, gold too will be digitized. An that digitized gold is Bitcoin.

² So why not peg Bitcoin to gold? Of course Bitcoin being a decentralized and a non-authoritative system no one can force Bitcoin to be pegged to anything but only the people who use bitcoins themselves. Can there be any other way that Bitcoin be priced at some specific value other than being dictated by the free market, that is the exchanges, which are prone to manipulation?

¹ Bitcoin for the traces in your CPU? Makes perfect sense

² Go ahead and put your asks around $1200 and you can make the difference. You will have effectively pegged Bitcoin to gold

[Wilhelm]

You can't peg bitcoin to gold.
You can peg fiat to gold.

bitcoin has value due to scarcity like gold.
fiat like USD is an IOY which used to represent gold by being backed by gold. Now fiat is backed by a promise and the general consensus that it is worth something.

[kwukduck]

Oww wouldn't it be nice if people would think about their silly ideas for more than a second before they decide to post?
The internet would be such a quiet peaceful place.

[CoinHoarder]

BitsharesX is doing exactly what you describe with market pegged assets that resemble the value of FIAT and commodities in a decentralized manner.

[franky1]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

[odolvlobo]

The only way the price of one thing (bitcoin, for example) can be pegged to another thing (gold, for example) is to have someone that can and will trade an unlimited amount at the pegged price. Just saying the price is pegged isn't enough.

[nuff]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

Thank you franky1 for making the effort to do the maths.  Indeed bitcoins are severely undervalued at the moment.

[Bitmore]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

Again, we run into the $1million per Bitcoin in about 10 years idea. 

I hope there is something to it because I will retire at the point that looks likely.

[nuff]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

Again, we run into the $1million per Bitcoin in about 10 years idea. 

I hope there is something to it because I will retire at the point that looks likely.

I've always dreamt about digital currencies ever since I realized that each and every aspect of our lives will eventually become digital.  But knowing digital, everything in binaries can be an exact lossless copy, I started to wonder how can currencies be digital, where exact same copies can be made. Along came Bitcoin.  And the fact that Bitcoin was concepted to be limited, that totally changes the way we think about currencies. If you know, that that one dollar you spend will become so much more in the future, will you spend it? See, we've become so used to spending inflationary currencies, that the dollar we have now is going to worth less in the future so we spend it, how about the dollar that will increase its value in the future? Bitcoin is exactly that, a currency that can only increase in value in the future. It's deflationary. We'll see.

[franky1]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

Again, we run into the $1million per Bitcoin in about 10 years idea.  

I hope there is something to it because I will retire at the point that looks likely.

im already semi-retired due to bitcoins but thats another story.
if you like maths then you will like that its estimated that the wealth of the planet averages to about $40k per working age man (5billion)
yea i know corporations and richguys own billions while some people only have approx $10 to their name, but it averages out as $40k

this means that the total average savings of working age people in the world is 200 trillion
(yea i know what your thinking already)

so if we devided it down so that bitcoin was distributed fairly and became the only currency 1btc = equivelant to $9.5million
or
working it out as the bases of an average man who would have had $40k in his life savings. he would get to hoard 0.00421056btc as he had to share it with the other 5billion.

so if you only had $4k in your bank you'd only own 0.00042105btc.
or put simply if every currency of the world only used bitcoin then:
$1 converts to 10sat,
£1 converts to 16sat,
¥10 converts to 16 sat
€1 converts to 13sat,

that being said. both of my posts infer that bitcoin TOTALLY replaces all currencies, and i do not believe in that utopia. so my numbers are meaningless and just for theory..

i beleive that not 5billion will throw their life savings at bitcoin. but maybe 21 million people would (average population of a large capital/city such as london or new york) making bitcoin about $40k each. again a meaningless theory

[odolvlobo]

if you like maths then you will like that its estimated that the wealth of the planet averages to about $40k per working age man (5billion)
yea i know corporations and richguys own billions while some people only have approx $10 to their name, but it averages out as $40k

this means that the total average savings of working age people in the world is 200 trillion
(yea i know what your thinking already)

so if we devided it down so that bitcoin was distributed fairly and became the only currency 1btc = equivelant to $9.5million
or
working it out as the bases of an average man who would have had $40k in his life savings. he would get to hoard 0.00421056btc as he had to share it with the other 5billion.

so if you only had $4k in your bank you'd only own 0.00042105btc.
or put simply if every currency of the world only used bitcoin then:
$1 converts to 10sat,
£1 converts to 16sat,
¥10 converts to 16 sat
€1 converts to 13sat,

that being said. both of my posts infer that bitcoin TOTALLY replaces all currencies, and i do not believe in that utopia. so my numbers are meaningless and just for theory..

i beleive that not 5billion will throw their life savings at bitcoin. but maybe 21 million people would (average population of a large capital/city such as london or new york) making bitcoin about $40k each. again a meaningless theory

Wealth =/= savings. Saying that the average person has $40k of wealth is not the same as saying the average person has $40k in savings. Wealth = assets + savings. It is wrong to divide the total wealth in the world by the number of bitcoins and use that to derive a potential value of a bitcoin.

I think this is what you are trying to do:

The monetary base of the world is about $12 trillion (or something like that), so if all the currencies in the world were converted to Bitcoin, then 1 bitcoin would be worth $923,000 ($12 trillion /  BTC13 million).

[rebuilder]

Bitcoin is exactly that, a currency that can only increase in value in the future. It's deflationary. We'll see.

So you've obviously put everything you can into buying Bitcoins.


No? Why, if it can only increase in value? Could it be value deflation isn't assured, after all? So maybe it makes sense to spend BTC when you want to buy something?

[odolvlobo]

Bitcoin is exactly that, a currency that can only increase in value in the future. It's deflationary. We'll see.

So you've obviously put everything you can into buying Bitcoins.
No? Why, if it can only increase in value? Could it be value deflation isn't assured, after all? So maybe it makes sense to spend BTC when you want to buy something?

I agree. There is no guarantee that the value a bitcoin will always increase. Even though supply is constant or falling, the value could fall if demand fails.

[Eisenhower34]

Bitcoin is exactly that, a currency that can only increase in value in the future. It's deflationary. We'll see.

So you've obviously put everything you can into buying Bitcoins.


No? Why, if it can only increase in value? Could it be value deflation isn't assured, after all? So maybe it makes sense to spend BTC when you want to buy something?

I think it would depend on how you define "deflation" to be able to say if bitcoin is really deflationary. If you were to measure it by the value of goods and services that one bitcoin can purchase then in the past it has been, however in the future who knows. If you were to measure deflation by the total money supply available then no bitcoin is inflationary because additional bitcoin go into circulation every 10 minutes that were not previously in circulation

[nuff]

Bitcoin is exactly that, a currency that can only increase in value in the future. It's deflationary. We'll see.

So you've obviously put everything you can into buying Bitcoins.


No? Why, if it can only increase in value? Could it be value deflation isn't assured, after all? So maybe it makes sense to spend BTC when you want to buy something?

Only what I can afford to(be realistic). But I'm one of those hodlers who would hold for 10-20 years. To me it's of no question whether the price will rise or not. I'm only concerned of getting as much btc as I can while I can afford to.

[franky1]

Wealth =/= savings. Saying that the average person has $40k of wealth is not the same as saying the average person has $40k in savings. Wealth = assets + savings. It is wrong to divide the total wealth in the world by the number of bitcoins and use that to derive a potential value of a bitcoin.

I think this is what you are trying to do:

The monetary base of the world is about $12 trillion (or something like that), so if all the currencies in the world were converted to Bitcoin, then 1 bitcoin would be worth $923,000 ($12 trillion /  BTC13 million).

um... nope
$12trillion.. is just USA
WORLD monetary base which if converted to a comparable dollar value = $200trillion
also i was not trying to be too specific. i was showing the Utopian fallacy/dream theory of the future (when all coins are mined) hence the 21mill coin, not 13mill coin.

i could have gone into specifics such as known lost bitcoins and current circulation.. but then id be forever updating the post every day as the numbers would change.

i just wanted to make 3 easy to calculate and double check calculations just to show the utopian potential

[franky1]

Only what I can afford to(be realistic). But I'm one of those hodlers who would hold for 10-20 years. To me it's of no question whether the price will rise or not. I'm only concerned of getting as much btc as I can while I can afford to.

2 years ago i had that same mindset. id only invest what i considered disposable amounts. (basically what i would have wasted on a weekend alcohol and fast food night out with the lads) that way you dont miss it, as it would have only ended up in the toilet the next morning anyways. and you are less emotional to sheeple panic at every bit of news.

since then i have hoarded a large amount and dont really care about the exchange rate

[CoinHoarder]

based on rarity there are only: 175,000,000,000 grams of gold on earth (175k tonnes gold)
based on rarity there are only: 2,100,000,000,000,000 satoshi's of bitcoin on earth (2100 trillion sats)

making 1 gram of gold worth 12000 satoshi
or
making 1 ounce of gold worth 340194 satoshi

so there is your 'peg': 0.00012000btc = 1 gram of gold
or
so there is your 'peg': 0.00340194btc = 1 ounce of gold


6,173,000,000 ounces of gold in the world
so there is your 'peg': 1btc = 293.95 ounces


and for fiat lovers 1ounce=$1215
so there is your 'peg':1btc = $357152.14 based on a gold peg standard

This is a pipe dream...