3 ms·

Yes, Gold is definitely the closest asset class that aligns with Bitcoin. Not a pyramid scheme

andrewla 5y ago
Gold I think is a good benchmark. But really any forex asset is just as good or better for a comparison. Gold has some portion of its value derived from decorative uses and numismatic purposes. People don't put 100 dollar bills on necklaces or wear quarter pendants. If you hold Euros as an investment as an American (or vice versa with dollars) then this as an investment class is extremely similar to Bitcoin. Sovereign debt has similar characteristics but is subject to interest-rate based fluctuations to a greater dgree. The main difference is that the markets for foreign exchange are tightly regulated and trade with huge amounts of liquidity -- it is difficult to inconceivable for any entity to affect the price in any way useful for market manipulation (with some exceptions, like Soros's little game with the Pound).
- marginalia_nu 5y ago
  If BTC-style price manipulation was the rule with gold, married couples would be melting their wedding rings. You simply cannot rely on bidding for price discovery when a significant portion (>50%) of the trading volume in cryptocurrencies appear to be wash trades, and with nothing else to tether it to, the prices keep bouncing around.
  - xboxnolifes 5y ago
    > If BTC-style price manipulation was the rule with gold, married couples would be melting their wedding rings. You mean like all of the "Cash 4 Gold" commercials that aired in the 2000s when gold went on a huge climb?
- alisonkisk 5y ago
_xnmw 5y ago
Gold doesn't make false claims about being "decentralized" while being anything but. Gold also has actual industrial uses outside of simply being a store of value.
- solveit 5y ago
  Neither of those pertains to pyramid schemes. You want to say that Bitcoin is useless so you should say that. Words mean things and Bitcoin is not a pyramid scheme.

Gold I think is a good benchmark. But really any forex asset is just as good or better for a comparison. Gold has some portion of its value derived from decorative uses and numismatic purposes. People don't put 100 dollar bills on necklaces or wear quarter pendants. If you hold Euros as an investment as an American (or vice versa with dollars) then this as an investment class is extremely similar to Bitcoin. Sovereign debt has similar characteristics but is subject to interest-rate based fluctuations to a greater dgree. The main difference is that the markets for foreign exchange are tightly regulated and trade with huge amounts of liquidity -- it is difficult to inconceivable for any entity to affect the price in any way useful for market manipulation (with some exceptions, like Soros's little game with the Pound).

marginalia_nu 5y ago
If BTC-style price manipulation was the rule with gold, married couples would be melting their wedding rings. You simply cannot rely on bidding for price discovery when a significant portion (>50%) of the trading volume in cryptocurrencies appear to be wash trades, and with nothing else to tether it to, the prices keep bouncing around.
- xboxnolifes 5y ago
  > If BTC-style price manipulation was the rule with gold, married couples would be melting their wedding rings. You mean like all of the "Cash 4 Gold" commercials that aired in the 2000s when gold went on a huge climb?
alisonkisk 5y ago

_xnmw 5y ago

Gold doesn't make false claims about being "decentralized" while being anything but. Gold also has actual industrial uses outside of simply being a store of value.

solveit 5y ago
Neither of those pertains to pyramid schemes. You want to say that Bitcoin is useless so you should say that. Words mean things and Bitcoin is not a pyramid scheme.