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Bitcoin is scarce asset and it's more like digital gold and a store of value, rather than a currency. People hold gold to maintain value and don't go to retaile

Bitcoin is scarce asset and it's more like digital gold and a store of value, rather than a currency. People hold gold to maintain value and don't go to retailers to pay for things in gold. It's the same idea with Bitcoin. However people can Bitcoin across the world pretty instantly which you can't do with physical gold. There are better cryptocurrencies for cheaper and faster payments that are more inline with traditional currencies. For example, VISA is launching credit card that will allow you to spend USDC cryptocurrency which is a non-volatile stable coin.

twice_benny 6y ago
People in general don't hold gold though. Tresuries hold gold, but everyday people are not very interested in preserving the value of their 200k in savings. They want a decent yield of at least 3%/annum.
- miguelmota 6y ago
  2-3% yield is the minimum needed just to keep up with inflation. Right now anyone can convert their USD to a stable-coin and get a safe yield of 8-12% with automatic lending protocols [0]. Gold is physical material people need to keep safe and converting back and forth from fiat is not something that's instant. If it was more convenient then people would hold it. Bitcoin solves this. https://defirate.com/lend/ https://defirate.com/lend/
  - twice_benny 6y ago
    Yes and people can also invest in high yield funds to get just as much with probably much lower exposure to risk. And no, people don't need gold.
    - miguelmota 6y ago
      Would love to hear more of these traditional high yield funds with less risk that you're speaking of. People don't need gold in particular, but they need a place to store value without friction.
perl4ever 6y ago
If you want digital gold, why not: https://www.etf.com/GLD https://www.etf.com/GLD It does have the disadvantage of having gains treated unfavorably by the IRS, (as "collectibles") but it has the advantage of having fairly liquid options you can sell.

twice_benny 6y ago

People in general don't hold gold though. Tresuries hold gold, but everyday people are not very interested in preserving the value of their 200k in savings. They want a decent yield of at least 3%/annum.

miguelmota 6y ago
2-3% yield is the minimum needed just to keep up with inflation. Right now anyone can convert their USD to a stable-coin and get a safe yield of 8-12% with automatic lending protocols [0]. Gold is physical material people need to keep safe and converting back and forth from fiat is not something that's instant. If it was more convenient then people would hold it. Bitcoin solves this. https://defirate.com/lend/ https://defirate.com/lend/
- twice_benny 6y ago
  Yes and people can also invest in high yield funds to get just as much with probably much lower exposure to risk. And no, people don't need gold.
  - miguelmota 6y ago
    Would love to hear more of these traditional high yield funds with less risk that you're speaking of. People don't need gold in particular, but they need a place to store value without friction.

perl4ever 6y ago

If you want digital gold, why not: https://www.etf.com/GLD https://www.etf.com/GLD It does have the disadvantage of having gains treated unfavorably by the IRS, (as "collectibles") but it has the advantage of having fairly liquid options you can sell.