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When I read a message like this, I conclude that bitcoin has another 10x to go since gold has a 10 trillion market cap. (Preemptively I'm going to say that gold

When I read a message like this, I conclude that bitcoin has another 10x to go since gold has a 10 trillion market cap. (Preemptively I'm going to say that gold market cap has almost nothing to do with its usage as a commodity, google it) reply

the_gastropod 6y ago
And the GDP of New Zealand will go up 100x because the USA has a $21T GDP. (Preemtively I’m going to say that US’s market cap has almost nothing to do with its sheep population, google it.)
graeme 6y ago
This seems to be flat out false. According to this 78% of gold globally is used in jewelry. Some other portion is used in electronics of industry. https://goldprice.com/project/facts-about-gold/ https://goldprice.com/project/facts-about-gold/ There’s no such reserve value for Bitcoin. You can’t look at it or hold it or do anything with it other than as a currency. I’ve seen widely varying stats estimating gold’s jewelry share but all of them are large.
- efwfwef 6y ago
  That's a moot point, Gold actual usage has no relation with its usage as a store of value. It's used as a store of value because it's shiny and people associates it with "value". Think: why are diamonds so expensive?
  - graeme 6y ago
    Maybe I don’t follow you but if more than half of gold use is jewelry then it seems the use has a lot to do with it’s value. People trade gold on top of that but it’s linked to use. If jewelry demand dropped 98% it would surely affect the price of gold.
    - efwfwef 6y ago
      > half of gold use is jewelry uh, no that's not true. I bet there's more bitcoin being used to buy drugs than gold being used in jewelry
- im3w1l 6y ago
  Gold isn't used in jewelry because it's particularly suitable for jewelry. It isn't used because it's pretty, or shiny, or smooth against the skin. It's used because it's expensive. So it's fair to say that jewelry is very much tied to store of value and speculation.
  - lupire 6y ago
    Jewelry is incredibly expensive compared to the value of the gold in it. But only when you buy it, not when you sell it.

the_gastropod 6y ago

And the GDP of New Zealand will go up 100x because the USA has a $21T GDP. (Preemtively I’m going to say that US’s market cap has almost nothing to do with its sheep population, google it.)

graeme 6y ago

This seems to be flat out false. According to this 78% of gold globally is used in jewelry. Some other portion is used in electronics of industry. https://goldprice.com/project/facts-about-gold/ https://goldprice.com/project/facts-about-gold/ There’s no such reserve value for Bitcoin. You can’t look at it or hold it or do anything with it other than as a currency. I’ve seen widely varying stats estimating gold’s jewelry share but all of them are large.

efwfwef 6y ago
That's a moot point, Gold actual usage has no relation with its usage as a store of value. It's used as a store of value because it's shiny and people associates it with "value". Think: why are diamonds so expensive?
- graeme 6y ago
  Maybe I don’t follow you but if more than half of gold use is jewelry then it seems the use has a lot to do with it’s value. People trade gold on top of that but it’s linked to use. If jewelry demand dropped 98% it would surely affect the price of gold.
  - efwfwef 6y ago
    > half of gold use is jewelry uh, no that's not true. I bet there's more bitcoin being used to buy drugs than gold being used in jewelry
im3w1l 6y ago
Gold isn't used in jewelry because it's particularly suitable for jewelry. It isn't used because it's pretty, or shiny, or smooth against the skin. It's used because it's expensive. So it's fair to say that jewelry is very much tied to store of value and speculation.
- lupire 6y ago
  Jewelry is incredibly expensive compared to the value of the gold in it. But only when you buy it, not when you sell it.