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Gold Market is backed by Governments, bitcoin is not, I doubt it ever will be, and by now it is probably already cornered market. https://en.wikipedia.org/wiki

by neatze 6y ago

Gold Market is backed by Governments, bitcoin is not, I doubt it ever will be, and by now it is probably already cornered market. https://en.wikipedia.org/wiki/Black_Friday_(1869) https://en.wikipedia.org/wiki/Black_Friday_(1869)

toyg 6y ago
Afaik no developed-country government “backs” gold in any meaningful way. There are some reserves here and there, some historical, but they are not directly linked to liquidity. It’s just a market for a commodity that happens to be fairly practical to store value in. Whether governments will start using digital commodities in the same way, is really a political question. I agree that it might be a cornered market, but the fact that forks do seem to happen might well turn out to be the way out of that problem.
- neatze 6y ago
  GOV/Central banks still use gold as reserves holding. https://en.wikipedia.org/wiki/Gold_reserve https://en.wikipedia.org/wiki/Gold_reserve
  - toyg 6y ago
    That’s not “backing”: nobody buys specifically to keep gold prices up or to legitimise the trade, they just use it as a commodity to make their creditworthiness believable and storing their value in a practical way. They are leveraging a pre-existing market, not backing it. (As a side note, this role for gold is clearly legacy: look at how little gold China stores, compared to their overall reserves.)
    - neatze 6y ago
      > their creditworthiness believable this not backing ? > look at how little gold China stores by metric tones china is on 6th place in world, what do you mean ?
      - CRConrad 6y ago
        >>[Governments use gold to make] their creditworthiness believable > this not backing ? It's the opposite. Originally you said "Gold Market is backed by Governments". This is governments being (partially) backed by gold. >> look at how little gold China stores > by metric tones china is on 6th place in world, what do you mean ? Their economy is the largest in the world. How much smaller are their gold holdings, compared to those in first place?

by neatze 6y ago

toyg 6y ago

Afaik no developed-country government “backs” gold in any meaningful way. There are some reserves here and there, some historical, but they are not directly linked to liquidity. It’s just a market for a commodity that happens to be fairly practical to store value in. Whether governments will start using digital commodities in the same way, is really a political question. I agree that it might be a cornered market, but the fact that forks do seem to happen might well turn out to be the way out of that problem.

neatze 6y ago
GOV/Central banks still use gold as reserves holding. https://en.wikipedia.org/wiki/Gold_reserve https://en.wikipedia.org/wiki/Gold_reserve
- toyg 6y ago
  That’s not “backing”: nobody buys specifically to keep gold prices up or to legitimise the trade, they just use it as a commodity to make their creditworthiness believable and storing their value in a practical way. They are leveraging a pre-existing market, not backing it. (As a side note, this role for gold is clearly legacy: look at how little gold China stores, compared to their overall reserves.)
  - neatze 6y ago
    > their creditworthiness believable this not backing ? > look at how little gold China stores by metric tones china is on 6th place in world, what do you mean ?
    - CRConrad 6y ago
      >>[Governments use gold to make] their creditworthiness believable > this not backing ? It's the opposite. Originally you said "Gold Market is backed by Governments". This is governments being (partially) backed by gold. >> look at how little gold China stores > by metric tones china is on 6th place in world, what do you mean ? Their economy is the largest in the world. How much smaller are their gold holdings, compared to those in first place?