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I've always been told gold isn't a good place to put your money so proponents of bitcoin comparing it to gold is concerning to me
by tdb7893 9y ago
I've always been told gold isn't a good place to put your money so proponents of bitcoin comparing it to gold is concerning to me
- puranjay 9y agoMaybe it's a cultural thing, but I've always been told that gold is a great investment. The "digital gold" argument doesn't make sense to me at all. Human beings aren't rational spenders. Gold, if nothing else, looks good. I can buy a $10,000 bar of gold and even if its value crashes by 20% tomorrow, I at least have an aesthetic metal that feels nice to touch. BTC doesn't even give me that satisfaction
- MarkMc 9y agoCheck out the ratio of gold price to Dow Jones index for last 100 years: http://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-historical-chart http://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-h... In 1917 it was about 5, now it's about 15. So threefold increase in a century. Plus the Dow pays around 2% dividend per year which is 7-fold increase in a century. So US stocks outperformed gold by 21 times between 1917 and 2017. Looking at the chart, there are very few long-term periods when gold has outperformed US stocks.