Frustrated Bitcoin vs Gold vs Silver

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gemel's picture
gemel
Status: Bronze Member (Offline)
Joined: Jan 12 2010
Posts: 53
Frustrated Bitcoin vs Gold vs Silver

Just venting my frustrations, seeing bitcoin going up and up and away and the pric of gold and silver still at the bottom of the barrel. Anyone on the same boat ?

 

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
It's not frustrating.. it's instructive

Bitcoin shares many qualities with Gold and Silver - they are all forms of money that have scarcity limits outside of the control of governments... except;

*  Gold is owned by central banks and derivatized via leases and swaps

*  Gold and Silver are priced, at spot, in markets based on trading paper futures... the primary market for which delivers only a tiny fraction as physical.  Bitcoin trades as Bitcoin... direct supply vs. demand pricing. 

*  You either own Bitcoin, or you don't.  Many big holders of Gold hold either unallocated or GLD.. both of which are only paper representations.  There are no Bitcoin derivatives.  

Bottom line is that Gold and Silver are fractionally reserved by bankers... Bitcoin is not (so far).  Bitcoin is simply trading as it should... Gold and Silver will eventually catch up when the masses wake up to the truth of both fiat money, and the true supply vs. demand for Gold.  

Many folks here thought I was crazy when I started talking about Bitcoin at $12.  The true scarcity of Gold and Silver, and their true value as money, will eventually be exposed.      

 

Jim H's picture
Jim H
Status: Diamond Member (Offline)
Joined: Jun 8 2009
Posts: 2379
The world understands Bitcoin better than we do in the US

http://koosjansen.blogspot.com/2013/11/biggest-dutch-food-delivery-servi...

Dutch & German Food Delivery Service Accepts Bitcoin

 

thuisbezorgd.pngTakeaway.com, a website through which customers can order food from thousands of restaurants, has subsidiaries in 10 different countries. As of yesterday, 5 November 2013, payments at three of these subsidiaries can be made in Bitcoin; in The Netherlands, Germany and Austria. From now on everyday food purchases can be payed in Bitcoin in these countries.

mrees999's picture
mrees999
Status: Gold Member (Offline)
Joined: Aug 16 2013
Posts: 372
bitcoin answers - frustrations go away.

I've got most of my investment in physical gold/silver but there's room for bitcoin too.  It's not "either\or" I like that you can track EVERY transaction in bitcoin as it's open source and open ledger 'blockchain.org". You can't "hide" money.  You can see what you own, and only you know your own wallet id.  You are your own bank.  Transferring large amounts across country or oceans is now (practically) free. No need for Western Union - or expensive bank wire transfers that take three days and cost 5% (or whatever their fee is).  Need to pay a supplier in China $5 million - if it only takes 30 minutes with bitcoin and they can swap it for whatever currency they want on their end?  Even massive price movements aren't going to be felt in that 30 minutes.

Link your own bank account at coinbase.com convert between dollars and bitcoin and back at any point.  Bitcoin can do a lot of things gold and silver can't. Pay little amounts, to people not near to you.  The government really can't take it down.. Just two computers anywhere in the world connected is all it takes to keep the network going. If the internet and electricity go down - you likely have a lot more problems to worry about.  Then your stash of silver\gold might be useful.

This is the biggest change in currency in the last thousand years?  Great intro lecture on the subject here: 

 

 

 

bowskill's picture
bowskill
Status: Bronze Member (Offline)
Joined: Mar 16 2012
Posts: 78
Can anyone recommend a trustworthy Australian bitcoin exchange

Any Aussies at PP been buying bitcoin in Australia? I found a few sites but all require payment in the form of cash over the counter at a bank into a designated account (eg btradeaustralia.com). International sites take a week to process fund transfers so I would rather go local if possible. But I don't want to hand over my cash without certainty the bitcoins will get to my wallet. Frustrating watching the price go up $50 today and not be sure how to buy.

bowskill's picture
bowskill
Status: Bronze Member (Offline)
Joined: Mar 16 2012
Posts: 78
Massive bitcoin robbery hits Australian website

This hasn't eased my concerns.

http://www.abc.net.au/am/content/2013/s3886606.htm

redwoods's picture
redwoods
Status: Member (Offline)
Joined: Mar 18 2013
Posts: 20
maybe this will..

http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425#ixzz2jsm23eCP

 

I'd be wary of certain news channels that only promote things in the interests of maintaining the status quo, for example the BBC and sky news here in the uk failed to report any mention of the global million mask march protest on Nov 5th, they seem to think if they dont report it then it isnt happening.

 

As for bitcoin every time it 'collapses' it comes back bigger

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