U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-01-2019, 09:17 AM
 
389 posts, read 89,427 times
Reputation: 554

Advertisements

Disagree with both.
Gold, if not purchased in certificate form, and Tulips are tangible assets.
Bitcoin can be on a wallet, but to me that is a fine line.
Reply With Quote Quick reply to this message

 
Old 02-01-2019, 11:15 AM
 
7,200 posts, read 4,667,786 times
Reputation: 12612
"Value" is reducible to numbers, but this quantification is beguiling. Why is real estate in San Francisco more valuable than real estate in Siberia? It'd a matter of... perspective. If this perspective is sufficiently pervasive, stable and common, we feel confident in "value". We are fairly confident that San Francisco and Siberian real estate won't switch in value in our lifetimes.

Bitcoin's problem is its novelty and weirdness. If it managed to perservere for a few thousand years, it might then become like gold. For the near future it is more like tulips - except that tulips are pretty, and brighten the dining-room table setting.
Reply With Quote Quick reply to this message
 
Old 02-01-2019, 11:18 AM
 
Location: N of citrus, S of decent corn
35,905 posts, read 44,058,075 times
Reputation: 59636
I think itís more like air than gold.
Reply With Quote Quick reply to this message
 
Old 02-08-2019, 03:09 AM
 
17 posts, read 1,945 times
Reputation: 36
There is only one gold, and as JP Morgan once said "Gold is money, all else is credit".

Given a one ounce (or close) twenty dollar gold coin had the exact same purchasing power as a twenty dollar paper bill in 1913 when the Federal Reserve opened it's doors, and today it takes 65 of those 20 buck notes to equal that same coin, I'd say paper currency is simply a tulip bulb in slow motion.

As for digital currencies, bitcoin gets a lot of attention, but there are literally hundreds of digital currencies. What makes one any more valuable than the next one ? I'm going to come out with Eddycoin......wanna tell me where I can buy gold with it ?

Also, someone above stated you can't pay your taxes with gold. Not so....US gold and silver eagles are legal tender and would be accepted AT FACE VALUE for tax payments....but given a one ounce gold eagle has a $50 face value versus a $1300 federal reserve note value, you'd simply have a hard time finding someone stupid enough to lose 1250 in purchasing power by using them to pay taxes.

Central bankers and most of the rest of the world knows gold is money.....which explains why the Chinese have been accumulating it hand over fist for decades. Only in the western world have the bankers convinced the population that paper they print is money, while they continue to devalue it year after year, by design.
Reply With Quote Quick reply to this message
 
Old 02-08-2019, 03:23 AM
 
67,856 posts, read 68,686,121 times
Reputation: 45715
in the end all that matters is what those influencing the price value it at .. if you bought gold at 175 an ounce , the first day you could legally trade gold bullion in this country at the value investors put on it in 1975 you saw a growth rate of 4.80% over those 43 years and have 1300 bucks today . if you bought it at 850 in 1980 today you saw a bit more than a 1% return over 38 years..

the same 175 in the s&p 500 in 1975 is 14,863.00 .. that is 10.60% ...

which would your rather have owned as an inflation hedge ?
Reply With Quote Quick reply to this message
 
Old 02-10-2019, 04:51 AM
 
Location: Pennsylvania
10,834 posts, read 3,648,961 times
Reputation: 8333
Quote:
Originally Posted by SportyandMisty View Post
Leading Economists weigh in on Bitcoin:

http://www.igmchicago.org/surveys/bitcoins

Question A: Bitcoins are more similar to gold than they are to currency: Agree or Disagree

Question B: Bitcoins are more similar to gold than they are to Dutch tulips in the 1630s: Agree or Disagree
Bitcoin is worthless. So I guess I'll answer AGREE to B
Reply With Quote Quick reply to this message
 
Old 02-10-2019, 05:00 AM
 
67,856 posts, read 68,686,121 times
Reputation: 45715
Gold has thousands of years of history .. digital currency have no history nor have they proved to zig when stocks zag like gold has ... gold has held a positive real return floor in a portfolio 98% of every downturn.. crypto did no such thing .

Gold and crypto are nothing like each other
Reply With Quote Quick reply to this message
 
Old 02-11-2019, 11:58 AM
 
7,468 posts, read 6,927,973 times
Reputation: 5639
Bitcoin is not used to back currencies in the way gold was and still is.

history of reserve currencies

It is a medium for money that's held outside the traditional banking system. Some physical assets, such as gold, real estate, and businesses, are used for that purpose but there are strict controls on the ownership and risk of confiscation.
Reply With Quote Quick reply to this message
 
Old 02-11-2019, 09:54 PM
 
Location: Gulf Coast
1,100 posts, read 593,045 times
Reputation: 2140
I thought some guy in India died and took a whole boatload of crypto with him somewhere...left no password... and they're saying they're not even sure he DID die or was he doing some scheme with people's money?
Don't understand any of this, just a bit I'd heard. Me, I'd never buy into this funny money.
Reply With Quote Quick reply to this message
 
Old Today, 01:22 PM
 
Location: Grosse Ile Michigan
25,605 posts, read 61,076,404 times
Reputation: 28585
e bitcoin as being akin to something like the Argentine Peso. It is backed by essentially nothing, varies wildly in value and potentially has no value whatsoever. Also like the Argentine Peso it can be difficult to get out of its realm of use and convert it to other currencies or investments.

Gold has some inherent value and it had always been recognized as trade-able currency since we graduated from shells or rocks or chickens as currency.

In any kind of a meltdown possession of physical gold will still have some value, or it always has anyway. Bitcoin does not really exist. Internet meltdown, or someone finds a way to generate more of it Poof it is zero and you have nothing. Also while gold has some volatility at times, it usually moves in increments. You can see the direction is is headed. Bit coin jumps around dramatically often with no increments.

Finally in a crises, the value of gold goes up because people see it as the only safe investment out there. Most forms of major crises, the bitcoin is going to go away.

Tulips, ostriches in the 1980s, junk bonds, bit coins. all basically the same thing by different names.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top