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The same arguments I used above can also be applied to gold. Gold is intrinsically hard to value. So pricing BTC off gold feels tenuous to me. Gold also has no
by Blackstone4 8y ago
The same arguments I used above can also be applied to gold. Gold is intrinsically hard to value. So pricing BTC off gold feels tenuous to me.
Gold also has non-monetary use (i.e. jewellery) which I imagine is a substantial portion of demand.
5+ years ago, I used to be really into gold when I used to read Zerohedge. I feel like I'm hearing similar arguments for crypto currencies vs. fiat as back then when I read up on gold vs. fiat. People were fanatical about gold (me included) and weren't objective.
I owned shares in gold miners. I got burnt and lost a whole bunch of money. So personally I'm sticking to investments which produce cash flow.
As they say, "History doesn't repeat itself, but it does rhyme." I had better learn from my mistakes.
- krageon 8y agoIf you owned shares in gold mines and got burned, it had nothing to do with the value of the gold itself. The price of gold has seen a steady upward trend over the past ~17 years at least (that's how long I've been looking at it, anyway).
- BugsJustFindMe 8y agoAdjust for inflation and look at the trend starting from the 17 years before that.
- krageon 8y ago"adjust for inflation" on a 300% increase? Are you looking at a different graph than I am? Perhaps I don't understand what I'm looking at. Could you walk me through your reasoning?
- BugsJustFindMe 8y agoSure. Google "inflation adjusted price of gold since 1980". Or view https://b-i.forbesimg.com/rickferri/files/2013/04/GoldFig22.jpg https://b-i.forbesimg.com/rickferri/files/2013/04/GoldFig22.... The giant saddle does seem to support the idea that gold is hard to value. Then the next search phrase to look up is "inflation adjusted price of gold since 2011". It's not a pretty chart. I would not use the words "steady upward trend" to describe it. "Steady downward trend", maybe.