Gold Is Not A Store Of Value
Let's take a look at the USD value of gold over the last century:
https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
Clearly, because gold was priced at $2231 in 1980 and then dropped to $377 over the next two decades it can't be a store of value.
That is a factor of 5.9 value that gold lost over 20 years. That's an 83% loss over TWENTY YEARS.
HM, 83% loss... that sounds familiar to something else.
Oh Right, Bitcoin... DUH!
Except, unlike gold, Bitcoin only takes a year to recover in price. Does that stop these zealot FUDsters from constantly making the claim that Bitcoin isn't a store of value but gold is? No, no it does not.
Bitcoin spikes from $4k up to $14k and on the correction down to $10k I see ten different articles about how Bitcoin isn't a store of value. These people are trying to manipulate public perception, and for the most part it's working.
Even more than 83%
Gold lost 83% of it's value over two decades in relation to USD, but as we all know USD loses value every year due to inflation. Even at just 2% inflation per year USD would be diluted 50% over 20 years, and I don't necessarily believe that inflation really is that low. Regardless, we can still know for a fact that gold lost significantly more than 83% over 20 years.
Comparatively, Bitcoin has just been going up and up and up and up and up. A one year correction after going x20 is not a bear market. Everyone needs to pull their heads out of their asses.
Bitcoin is not a store of value.
I've been saying this a while now. Bitcoin doesn't store value. It creates it. Every year the infrastructure of Bitcoin gets better. Every year the code becomes more robust with greater functionality. Every year users can be sure that their holdings will not be diluted by inflation.
In fact, it's quite clear that the little inflation that Bitcoin does have pays for itself 100 times over. Every time a halving event occurs the market goes insane, and all inflation is used to secure the network. It's so incredibly superior to traditional tactics of storing value. Of course it would be. It stores the value and then it creates more on top of that and then it does it all over again indefinitely.
The most amazing thing about Bitcoin is that all the software upgrades are developed pro bono by a worldwide network of altruistic open-source developers. Everyone who holds Bitcoin get's free upgrades.
This is equivalent to owning a computer that has little green men inside that upgrade the components inside. You'd never have to buy another computer/phone ever again.
Superior
Bitcoin is so superior it doesn't even matter how horribly centralized it is at the moment. It will always be horribly centralized, especially while new users are constantly being drawn in from the outside world. This is ironic because obviously the more people that get involved in Bitcoin the more decentralized it becomes. However, no one likes to look at it like that.
If a billion people were to start using Bitcoin tomorrow, all anyone would talk about is how little Bitcoin the new people have and how centralized Bitcoin has become. It's such an incredibly flawed perspective. You know what's more centralized? The system everyone is using called central banking. It literally has the word 'central' in the name. lol, give me a break.
Centralization isn't even a bad thing. As we saw with the PALNet airdrop, the smartest way to distribute wealth is to target the most trustworthy people you can find. If the most honorable and trustworthy people in the world have the most power, then obviously the world will experience a paradigm shift the likes of which the human race has never even come close to experiencing.
Rather than putting the most cutthroat people in charge we are on the verge of giving positions of power to the most qualified individuals. With automation looming on the horizon, less than 5% of the world population would be forced to work a job that they didn't like. The rest would be free to do whatever they desired, and would likely be incentivized gently by the people in charge to head in a direction deemed appropriate. Micro-incentives are a powerful motivator.
Maybe this sounds like a Utopian fantasy to a lot of people, but it isn't. It's just a way better system than we have now. Of course there would be hiccups and power struggles, but for the most part everyone on the planet would be a hundred times better off than they are now. Considering how many technological gains have been stolen from the people, this is easily doable, even with corruption within the new system.
Volatile
Bitcoin is not volatile. We are impatient. We want it all and we want it now. We are greedy little children with a broken mindset chained in scarcity.
Bitcoin is incredibly predictable. Sit in the market 4 years and you win. That's all you have to do. Somehow, this is too much to ask for the average person.
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|---|
| $100 | $200 | $400 | $800 | $1600 | $3200 | $6400 |
| Jan | Feb | Mar | April | May | June |
|---|---|---|---|---|---|
| $3467 | $3733 | $4000 | $4267 | $4533 | $4800 |
| July | Aug | Sept | Oct | Nov | Dec |
|---|---|---|---|---|---|
| $5067 | $5333 | $5600 | $5867 | $6133 | $6400 |
I say again: Bitcoin is not volatile. It is been insanely consistent in doubling every year on average. People are upset because the price dropped from $14k to $10k? WHAT?! It's only worth $5k right now. Shut up already you greedy little goblin.
Why did gold lose value?
Think about what happened during 1980 to 2001. The gains in technology were massive. We should all be rich right now. What happened instead? All the gains of technology were captured by Venture Capitalists and tech corporations. Most of it was inflated away by the sleazy central bankers.
What a fucking coincidence that FED interest rates STRAIGHT UP PEAKED during the time of the fiercest economic and technological growth in human history. They stole all our money and milked the system for everything it was worth.
Now there is so much corruption, the leeches can't be burned off. The economy is fucked and it will never recover using the old ways of central banking. This is especially true considering crypto is a superior form of currency and now everyone can opt out of this hundred year long cluster fuck.
HODL
Your personal wealth doesn't matter. More people need to HODL for political reasons. The entire human race has been enslaved since before any of us were born. It's time to break free.
Are you telling me that Modern Monetary Theory is a joke? I thought cutting rates and encouraging heavily leveraged corporate entities to borrow more money was a good idea. If if that doesn't work, we can always print more, right?
Wait a second, are you implicating that aliens exist, or is this the Matrix? My whole life is a lie.
Hopefully humanity is simply enslaved by its own greedy and tribalist behaviors. We can't scale up until we decentralize authority. Until then the cannibalism will continue.
I have heard tales of multiple alien races having been here... all with their own agendas. If that was actually true it would be somewhat mindblowing. What kind of agendas would they have? What would they want? Aren't the resources of the galaxy heavily abundant when you know how to manipulate them?
The only thing I can think of is Earth as a lifeform. If planets themselves were alive then enslaving them might be quite useful... as they are quite rare. And I'm not talking about enslaving humanity here... humans would just been seen as the annoying bacteria on the surface.
Obviously this would only be true if terraforming a new planet was nearly an impossible task due to constraints that we currently don't understand. In this context, some alien races could consider living planets as a form of ultimate currency. The next time I speak to aliens I'll ask them.
My speculation knows no bounds.
I agree to disagree. Gold can rapidly go up and is a store of value when FIAT currencies fail. Bitcoin has not been around long enough to make any type of determination of it's true value. Right now it is strictly a speculative asset and it has yet to be tested during a fiat crisis or failure within the economic system. Either way, the time is coming soon to see.
Very good, but I think you can make the same argument that gold is also simply a speculative asset given the same logic.
then why are central banks around the world buying it? People WEAR it and it is embedded culturally in every society in the world. Gold is associated with success. Bitcoin has yet to establish any type of cultural integration. Maybe give it a few 1000 years.
As a hedge for their impending demise.
These people are smart and spew propaganda against the technology that will destroy them. They know it's only a matter of time so the best thing to do is jump on the train before everyone else does.
Also, they are trying to use Bitcoin to control all the other coins. This should be obvious from the most recent pump and dump. Only Bitcoin gained value but all other projects panic sold like cowards when Bitcoin crashed.
They will use the Futures market and Exchange Traded Funds and whatever other tools they have in the toolbox to maximize their level of control and hold on to it for as long as possible.
They already have a lot of experience controlling the value of precious metals using the same tactics they are employing with Bitcoin. However, Bitcoin (and blockchain in general) is much quicker to adapt than gold. In fact, gold can't adapt. Gold is gold. However, crypto is code and can maneuver around the tendrils of central control.
100% agree about bitcoin problem is adopting alt coins for payment real goods!
People are just soo ignorant...
I just dont know if btc is really a good thing to happen to us..
Ofc.. We get freedom.. But we also give these psychos who rule and leech a perfect tool to safe the money theyve made by fucking us all..
If already now people are way too dumb to see conspiracy and psychos have advantage cuz they have no empathy.. Why should normal people not get totally wrecked after the Bitcoin Filter?
The cliff between poor and rich will just be massive after Bitcoin hits..
And yea they gave us Blockchain.. But who cares if btcs dominance is at like 99%?
Even if there is a new and dangerous system.. They can just completely buy it with btc..
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The communities and the underlying code that governs them will adapt to these threats as they come. If the greatest value will be generated by quarantining a project off the grid that's what will happen.
If a big enough community comes around and offers everything a person wants: food/housing/cloths/water/car/infrastructure/etc. then you can incentivize the community to cut ties with all other projects if that's what will create the most value (I doubt this will happen).
What is far more likely to happen is what I described. The most trustworthy and honorable community members will be the whales. They will control the currency and make sure bad actors don't acquire too much of it. They will gift other 'good people' with value to ensure the system continues to synergize.
These projects can't be bought out.
Im not so sure about it..
There can be a lot of pressure on you when USA knocks and wanna bring you democracy ;)
I also learned people do what they think are best for them.. You can just easily wreck em all by giving them a short term advantage but fucking them long term cuz they are just dumb... And voluntarily playing after your rules cuz you gave em a little short term advantage..
We need Information clarification.. Real 'Aufklärung'..
Otherwise nothing will change.
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Smart money is pretty dumb right now.
It can only get smarter and more evolved as time ticks by.
Mad respect for your optimism, though
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I'm not that optimistic... I think this next economic collapse is right around the corner and the 99% is fucked. Only the super niche crypto people like us will make a few bucks off the suffering of billions. New boss, same as the old boss.
Also, there is a massive asteroid the size of a small country made entirely out of gold in our solar system. If we were to start mining that, gold would definitely not have the scarcity factor it does now. Knowing the rate at which things are happening with spacex, I'd imagine gold will become an abundant resource and no longer a sign of wealth within our lifetimes.
Mosty agree with you but Gold has thousands of years behind it so it never hurts to hedge bets across a couple of options. I prefer crypto but gold is also one to have as well.
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People don't tend to leave their moneybin cash. Buying an index fund or decent mutual fund with 1000 dollars in 1980 would have been the best choice. Land and things that produce are the best stores of value. You cannot create or destroy real estate easily and factories create jobs and things that can be sold.
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Indeed, most people these days live paycheck to paycheck and spend all their money just as fast as they make it. Of all the people I know I would say that only around 10% are actually responsible with their finances.
Unfortunately, the foundation of the entire economy is tied to money. This is not intrinsically unfortunate, as the only reason why it is so detrimental is that money today is a product, and that product is owned by a small handful of people.
The foundation of the entire world economy is on the verge of making the paradigm shift to cryptocurrency, simply because nobody controls it. Fiat is monopoly money in comparison, so your skepticism and disbelief that crypto is not a real product is quite misplaced. Crypto is The Product, the one that all other products will be measured by.
I feel sorry with people living paycheck to paycheck. I know a few people like that who easily make double the income I do. I manage to save50% of the income my family makes, not including the mandatory government schemed and I'm fully insured privately as well.
Most people need to learn to save before they learn to invest. Employment is a massive investment of time, then to just burn the profits is silly.
I also think crypto will take over, but the question is which ones? BTC is the most familar one but there are around 4 million of them missing which poses a threat. Most of the others are too centralized or vulnerable to 51% attacks to be useful.
It sucks having to trust central banks, but trusting whales is also risky. Imagine if China had the power to easily crash the Euro or USD? It would make economic sanctions look like children's play. Governments are going to be very careful giving up control.
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Gold is somewhat a store of value against inflation but then again the USD was taken off of the gold standard back in 1933. Plus you know NASA just found a almost solid gold asteroid lol
I bet it would be cheaper to create gold using vast amounts of energy than it would be to mine an asteroid. Still, you make a good point about how crypto's supply can be controlled precisely, whereas gold's can't.
Personally I think it's a bit of a mistake to compare a physical product with a digital one... but here we are.
Bitcoin stores value, its just the value goes up and down! ;)
USD is not a Real Currency
I forgot to link this in the OP.
Seems relevant.
Watch me quadruple dip the reward pool on this post with 3 frontend tags. lol
https://steemit.com/busy/@edicted/five-tags-for-five-different-frontends
Upvoted with STEEM, PAL & LEO stacked in my wallet :)
Spot on. Gold is a pretty shitty store of value even if it were stable. Or rather, it's piss poor at capturing value. If you really want to park a lot of money somewhere on the fiat side, try a diverse portfolio of assets where stocks play a major role. Spend $100 to buy gold now and it's value 50 years from now will be roughly the same, or if you're unlucky, much less. Spend the same money on stocks and it will be much higher. Right now, crypto is the best asset class to invest in.