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the role of precious metals in a future economy dominated by BTC

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Comments

  • Assuming the global Internet is not shut down, what useful properties does gold have that cryptocurrency does not? Bitcoin was designed specifically to function as money, whereas gold has other applications.
  • Don't assume on internet specifically, but electricity generally. Think - storm, tsunami, war or budget measure. Bitcoin gets tricky while gold jumps in a bag and gets out of town.
    But while the power's on;

    Gold has real economic uses, and some products and research will become cheaper.

    Wisdom @BitcoinCooperative

    If Bitcoin was designed to function as money, it was also designed to behave as a commodity; but only until the lights go out.
  • Tell me what you figure is more likely... a worldwide failure in electricity (and thus, the collapse of mankind as we know it...) or an overzealous government deciding they want your gold and making it illegal to use it as a store of wealth?

    Wait, before you answer.... https://en.wikipedia.org/wiki/Executive_Order_6102

    :)
  • You don't need a worldwide failure, local is enough in the moment.
    An overzealous government can attack Bitcoin equally; because again, local is enough in the moment.
  • Hrmm... well, I don't think any of us are thinking about what bitcoin (or gold, for that matter) is in the moment.

    Like I said before, personally I'm of the opinion that there's plenty of room for multiple currencies, vehicles for wealth storage and transfer, etc, in an imagined future bitcoin economy. But I wouldn't be too quick to discount bitcoin because of a power-related threat.

    If, for instance, there were some major extended outage I think societally we'd have much bigger problems to contend with than bitcoin, or gold, or cash. If we're talking about the possibility of regional temporary outages, I don't think that threatens the larger economy as a whole.

    Bottom line: Bitcoin and metals are different, and serve very different purposes. If I ever felt a need to cross a border with large sums of wealth, I'd rather do it with a clever brain wallet than with my underoos filled with bullion.
  • I am absolutely thinking about these things in the moment. The fact that both you and I are actively involved in threads discussing price swings, speculating on moments both past and future, indicates that you are as well.

    I agree with you that there's plenty of room for multiple currencies, vehicles for wealth storage and transfer, etc, in an imagined future economy. I don't discount Bitcoin because of a power-related threat any more than I discount the use of my debit card. During the 2003 blackout in Ontario and the northeast US, my debit card was dead useless for days. My cash on the other hand worked better than ever. This threat is admittedly a rarity in peacetime; though in any war-zone, electricity and communications are ofter the first to go.

    Bitcoin and metals are different, and serve very different purposes.
    Metals and cash are different, and serve very different purposes.
    Cash and Bitcoin are different, and serve very different purposes.

    As true now as ever before: Everything in moderation.
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