4 ms·
It doesn't matter how well you protect your gold, you can never protect its value, since this will be diluted if someone else brings a lot of gold to market. Th
by runeks 9y ago
It doesn't matter how well you protect your gold, you can never protect its value, since this will be diluted if someone else brings a lot of gold to market. That's what happened during the ~1700s: lots of gold was brought to market because of world travel and disrupted local economies. Bitcoin prevents this by automatically adjusting difficulty. Asteroid mining can make gold useless, while Bitcoin would continue to function unless SHA256 is broken. I'm not saying Bitcoin is better or worse than gold, just that they both have advantages and disadvantages when compared.
- RandomKid 9y ago>> you can never protect its (gold's) value, since this will be diluted if someone else brings a lot of gold to market... Bitcoin prevents this by automatically adjusting difficulty. It doesn't prevent it. If everyone decides to sell BTC now (including the big whales owning the major portion), it's price in USD will fall, too. How is this different?
- iopq 9y agoIf everyone decides to sell now the price will tank. But then people will decide that Bitcoin is now "cheap" and the price will increase.
- runeks 9y agoWhat I meant was that newly mined gold can cause extremely large flows into the market (much more than all the whales dumping at once), which is what happened ~300 years ago. Gold had large geographic differences in the difficulty of mining it, which Bitcoin solves through adjusting difficulty.