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Old 03-12-2018, 02:40 PM
 
Location: Paranoid State
13,047 posts, read 9,956,826 times
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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
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Old 03-12-2018, 07:16 PM
 
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The problem with Crypto currency as an asset is they are easily substituted. Ultimately there is no value as there are a thousand ofs other math problems that can generate a key that you can claim you own some kind of coin. You might as well call it a fart or a photon. People hear coin and they think "money!".

Let us see how many are out there already trading.

https://coinmarketcap.com/all/views/all/

So nothing like gold.

Like anything with wild volatility there is money that can be made. However as an actual investment I'd rank all of the crypto currencies closer to Tulips that Gold.

I don't think they are entirely worthless. There is some value there for banking institutions to add layers of security with using something similar. Although you won't be seeing such a product traded on an exchange there is value to what it is, just not as a currency or asset which people are chasing but will realize there is nothing there at the end.
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Old 03-12-2018, 08:15 PM
 
7,249 posts, read 5,422,923 times
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Quote:
Originally Posted by aridon View Post
I don't think they are entirely worthless. There is some value there for banking institutions to add layers of security with using something similar. Although you won't be seeing such a product traded on an exchange there is value to what it is, just not as a currency or asset which people are chasing but will realize there is nothing there at the end.
They really are almost entirely worthless though.

If a company (financial institution or otherwise) uses blockchain for something, that doesn't do anything at all for the Bitcoins/Moneros/Ethereums/etc. of the world.
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Old 03-13-2018, 09:36 AM
 
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How does gold differ from tulips? Gold may have more valuable uses than tulips, but nothing that justifies its current price. The only real difference is that the gold bubble has lasted far longer than the tulip bubble did.

How does gold differ from currency? Gold is a currency in some places, and has been in many others. If you specifically mean fiat currency like the US dollar, then bitcoin is more like gold because it obviously has no government backing and you can't use it to pay your taxes directly. If you're talking more generally about ease-of-use as a purchasing unit, the bitcoin is more like gold as an uncommon transaction agent, although maybe slightly more currency-like than gold (I don't know how many businesses accept payment in bitcoin vs gold coin). If you mean its physical form as an electronic value, then it's more currency-like, much like my worthless billion-Zimbabwe dollar note is physically dollar-like.
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Old 03-13-2018, 05:17 PM
 
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Well when you can grab some dirt and some seeds and grow gold then come back and tell me that it is no different than tulips.

Gold is 4 parts per billion. Silver 75 parts per billion. Platinum is 5 parts per billion.
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Old 03-13-2018, 06:35 PM
 
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Quote:
Originally Posted by aridon View Post
Well when you can grab some dirt and some seeds and grow gold then come back and tell me that it is no different than tulips.

Gold is 4 parts per billion. Silver 75 parts per billion. Platinum is 5 parts per billion.
There are also a cap on the number of bitcoins that can eventually be mined. And it is supposed to get more and more difficult over time, until eventually all of the bitcoins run out.

I am not really a believer in bitcoin or any crypto, but I would say more like Gold. It’s a real thing. Tulips literally grow from the ground. I do think that most of the crypto currencies will go belly up within a few years, with only a small handful of exceptions.
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Old 03-14-2018, 10:34 AM
 
Location: Pennsylvania
10,834 posts, read 3,648,961 times
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Quote:
Originally Posted by FrankMiller View Post
How does gold differ from tulips? Gold may have more valuable uses than tulips, but nothing that justifies its current price. The only real difference is that the gold bubble has lasted far longer than the tulip bubble did.

How does gold differ from currency? Gold is a currency in some places, and has been in many others. If you specifically mean fiat currency like the US dollar, then bitcoin is more like gold because it obviously has no government backing and you can't use it to pay your taxes directly. If you're talking more generally about ease-of-use as a purchasing unit, the bitcoin is more like gold as an uncommon transaction agent, although maybe slightly more currency-like than gold (I don't know how many businesses accept payment in bitcoin vs gold coin). If you mean its physical form as an electronic value, then it's more currency-like, much like my worthless billion-Zimbabwe dollar note is physically dollar-like.
Have to disagree on that one.... Gold has been around for thousands of years and is a legitimately RARE commodity. It has some industrial uses as well as jewelry. I'm not crazy about gold as an investment that is going to make you great amounts of money - it pays no interest for one thing - but as a storehouse of value - it's very good.
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Old 03-14-2018, 10:37 AM
 
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how is bitcoin different than a game currency? you can "buy and sell" game gold

and once people stop playing the game, your pile of gold is worthless
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Old 03-14-2018, 10:42 AM
 
Location: Paranoid State
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Here's how leading economists responded (for those of you who didn't click on the link in the original post)




and



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Old 03-14-2018, 10:48 AM
 
Location: Paranoid State
13,047 posts, read 9,956,826 times
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I like a few of the economists' short responses.

Question A (Gold vs. Currency)

Quote:
A bitcoin is a private bet on becoming a (public) legal tender, and on earning the seignorage.
Quote:
Except that you cannot make nice necklaces with bitcoins.
Quote:
At the moment Bitcoin is more of an investment than a medium of exchange and so is closer to gold. The reason is the price volatility.
Quote:
Bitcoins, like currency, are used as a means of payment. Gold is not. Gold has a fundamental value.
Quote:
Bitcoins are a bubble. Gold embodies a bubble but has a fundamental industrial value. Currencies are a bubbles backed by the government.
Quote:
Bitcoin is neither close to gold nor to a currency. Studies show that its asset prices so far do not behave like gold or other currencies.
Quote:
Like gold, bitcoin has stable supply, unstable purchasing power, and no central bank to back it up
Quote:
Bitcoins are not commodity money (like gold) but rather fiat money (without the backing of a sovereign).
Quote:
Bitcoins lack characteristics of fiat money (legal tender, trust in issuing state, good store of value, good medium of exchange)
And a classic:

Quote:
If I knew the answer I would take a position on them!
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