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RE: What is the inflation rate of Bitcoin? How does it compare with gold?

in #bitcoin • 5 years ago

The difference between Bitcoin and Gold is that Gold has "intrinsic value". I hate that phrase, because it doesn't describe what it is - a better phrase would probably be "intrinsic demand". Gold can be used for things other than money, so it's not just a unit of account that people agree on for use as a currency. This is key, which is why I subscribe to the DAC philosophy. If we want a stable currency, it'd be better to put Gold on a blockchain for accountability purposes with cameras in the vault, because Bitcoin still has the possibility of being overtaken by a competitor. This is exactly why I support Quintric - Gold and blockchain are symbiotic, and we should be very careful to watch ourselves when we use Fiat arguments.

5 years ago in #bitcoin by
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     5 years ago 

    You are correct that gold has a "intrinsic demand" but not as much as we mine it. Imagine how many tons are stuck in the vaults with no use.
    Also on the downside Gold has many. It is

    • Heavy
    • Can be confiscated easily, specially if you travel as we see today when immigrants escaping from war etc
    • You cant send it easily and cheaply. You also have to trust a thirdparty. Specially say you want to send kilos of gold, It wont be a simple matter of going to the post office even.
    • You cant integrate it to shops for using to for purchase, with BTC you will have LN and even BTC itself. Also for purchases like house etc BTC is good enough in itself.

    So in my opinion (right or wrong) i still think BTC is much better moving into future of money/store of value. But who knows this is a "young" market and we never know what comes next.

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     5 years ago 

    I appreciate your opinion, but I'll offer some counterpoints:

    1. Gold being heavy makes it harder to steal large amounts.
    2. Gold on a blockchain is as difficult to confiscate as Bitcoin if the vault is in a friendly jurisdiction.
    3. Blockchain makes it easy to send cheaply.
    4. You have to trust a third party, but companies like Quintric are live-streaming their vault, and I think it's more of a separate use-case for blockchain, as it brings accountability to certificate printers. Totally anonymous currency has its place in a dystopian society, but in a free society, Gold has a very enticing use-case as a stable money with intrinsic value in the market.
    5. If it's on a scalable blockchain, it's as easy to integrate into shops as Bitcoin or any other crypto, and you won't need a LN.
    6. With crypto and traditional gold products, you have to pay capital gains on every transaction. If you use Treasury-minted coins, the government can't tax you (save the income and sales tax).

    I get the need for a trustless system, but I don't think we'll ever totally get that, even with Bitcoin. I think the ability for blockchain to provide transparency and accountability allows us to have an astronomically greater amount of trust in institutions that will have to actually prove their assets from now on. I like to think of it as a separate, but legitimate use-case. Plus, I'm just excited to trade Bitcoin with a proven non-fiat stablecoin.

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       5 years ago 

      Ok so my counterargument :)

      1. So is Bitcoin, spread the words in separate locations or just remember a few of the words. And i did not mean stealing part of it but rather moving it, taking it with you. Try take 10kg gold through customs. Beside the weight they will for sure stop you for many reasons.
      2. Not sure what you mean, gold on blockchain? Either way with so many corrupt governments, banks, politicians they can do what ever is best for them. With Bitcoin they can not physically confiscate it, nor can they stop the internet completely.
      3. agree
      4. Does not matter, the point is to move away from using a thirdparty no matter how good they are. And having privacy is the right of every citizen. No one should know how much money i have or what i use it for. It is exactly this sort of mind game government play to scare people and let the banks get more power of our money. And in this day and age gold doesnt really have any appeal to young people. Maybe governments but not people. Crypto on the other hand will grow more rapidly with better wallets and dapps.
      5. I actually dont like the LN, there are far better option like PIVX, DASH and hopefully ETH once they upgrade. And again i dont like thirdparty involvement.
      6. I'm not in the US so not sure how that applies here. I actually dont think tax is a bad thing. BUT we pay way way to much and there is no way knowing where the money is going and what its used for. With blockchain that can be tracked. Anonymity is for people not governments.

      I do hope we can get rid of all money but to be realistic i dont think we will ever get there totally but yes i agree that we will have a much better accountability and transparency thanks to Bitcoin. It might not even be Bitcoin that will be THE coin but something will come out of all this sooner or later.

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         5 years ago 

        ps. where is the video? i cant see it anymore.

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