Loading ...Bitcoin vs Gold
IMHO….
Most people laugh when they see predictions of Gold going to $20,000 and beyond. ( I know I do)
Now that Bitcoin has reached that level in a few short years….it probably doesn’t sound so far fetched that an ounce of Gold would be worth $20,000
I mean if a bit on a computer leger WHICH WAS CREATED OUT OF NOTHING can be ‘worth” that much …why not a rare and precious metal ?
I think ultimately Bitcoin will pave the way . Obviously people are understanding that The Central banks are printing out of control and something has to give with Fiat.
Its just that for now all they understand is Bitcoin is an off the grid way to store wealth.
This will sound like sour grapes but WHEN (NOT If) this thing reverts to its intrinsic value….Gold will be the beneficiary…
………………………………………..
This …is an illusion…on your computer screen ( You can own ONE for $18,000 )
…………………………………….
This…. is Cold and Hard and Shiny . Its Very rare and Very Real ( You can Own one for $1250)
It came from Outer Space and was impregnated into the earths crust …extracted in tiny bits from tons of hard rock and purified to 999.9%
Take your Pick
Fully the Neanderthal
Just an observation. When you subdivide the electronic thing the parts equally or proportionally to add up to the whole or in other words the sum of the parts cost the same as the one whole part. But that outer space thing, when you subdivide it into parts for example 1/2’s, 1/4’s, 1/10’s or any combination of these parts that add up to 1 whole unit it always cost more for the parts than the whole. Did you ever wonder why that is?
It’s called volume of scale. Works at the bakery also. Also every other commodity. Should rather ask why it doesn’t apply to Crypto’s?
red label, I believe you are referring to this; Economies of scale,,,https://en.wikipedia.org/wiki/Economies_of_scale. Basically it says that volume produced cost of production should result in lower cost per unit, correct? OK look at the mintage of Gold Eagle 1 ounce coin versus gold eagle 1/10 coins over the years they have been produced, Basically they product almost the same amount of each on average. So I ponder why is it that the 1/10 coin costs the most? Does the dies cost more to produce, does it take more time to stamp them out? Do sheets of gold rolled into the thickness of the blanks cost more to produce for the 1/10? I believe you will find like I have that cost is proportionally equal. So what is it?
For one ounce of gold in a 1 oz coin it takes 10 times less work than for minting cleaning , polishing one ounce in Ten 1/10 ounce coins.
Fully, so you are saying it takes 10X more effort to stamp out 1 million 1/10 ounce coins than 1 million 1 ounces coins. Right?
No but it takes 10 x more effort to mint 10 …1/10 ounce coins than it does to mint 1… 1 ounce coin…but they are equal amounts of gold
They have to refine stamp polish package 10 pieces as opposed to one
It’s the same reason why FORD can build and sell cars cheaper than you. Or Barrick can make a profit mining 3 g/T ore and you can’t. It’s why a farmer can produce food cheaply. Why airlines can sell plane tickets so inexpensively. It costs the same to make a $1 or a $100 bill but percentage wise that cost is huge and is eaten by the mint. Ask yourself why Crypto’s don’t play by market rules that have existed since the dawn of time?
Millennial version of fake gold