Let's see how this prediction turns out. (They are talking their book.)
Tyler and Cameron Winklevoss told CNBC that bitcoin will skyrocket to $500,000 within the next decade as it surpasses gold as a store of value.
Business Insider
Winklevoss twins say bitcoin will soar to $500,000 and surpass gold as a store of valueEmily Graffeo
See also
The Fair Price of Bitcoin is Zero (December 2, 2013)
Eric Tymoigne
14 comments:
The value of gold is subsidized by government in that Central Banks may buy and own it.
Remove that subsidy if you want to know gold's true value as a store of value.
And considering that increasing technology allows us to do more and more with less (and less expensive) material, I'd say that gold as a store of value is for fools.
Common stock is the wiser choice since common stock is typically backed by productive, not dead assets such as gold.
Gold has always been the numeraire as the basic standard in real terms for comparing relative value of other goods.
Gold is also the assumed to be ultimate anchor linking the financial and real in floating rate systems.
Economists and financial types don't talk much about this unless they are gold bugs but it is a standard that lot of folks look at if for no other reason than the long history of fluctuations in value that is available at a glance. Conservatives pay a lot of attention to this in comparison to those that are more liberal and regard gold as the barbarous relic. Needless to say, bankers tend to be pretty conservative about these things.
Central banks hold it for this reason along, but there are also other reasons. Gold is very liquid and can be exchange for currencies.
Presently, US tsys provide a similar function. Not so long ago it was the British pound, and so on. Currencies come and go; gold goes on forever owing to its unique physical properties.
There is some motion toward replacing national reserve currencies with something less political and more stable. I would not rule out some role for gold in international settlement in the future.
So none of the major cbs want to be caught out without gold.
In addition, cbs can influence the value their currencies by buying and selling gold, where as buying and selling currency to do so is considered currency manipulation.
For example, if a country that is a gold producer wishes to liberalize fiscal policy without incurring debt, it can instruct the cb to buy gold from its gold producers. That spending is essentially the same fiscally as any other in that it increases M1. But it is not fiscal technically, since the cb is offsetting it with an asset and paying for it with a liability. So no debt. If inflation is not a consideration, no problem. Why be concerned with increasing public date. It can affect the exchange rate.
So I don't see cbs abandoning gold anytime soon unless they all would at the same time. And as long as governments treat gold as a financial good and store of value so will others.
I would bet that gold will be around a lot longer than bitcoin will be around.
For example, if a country that is a gold producer wishes to liberalize fiscal policy without incurring debt, it can instruct the cb to buy gold from its gold producers. That spending is essentially the same fiscally as any other in that it increases M1. Tom Hickey
Besides violating equal protection under the law in favor of gold producers, that would also encourage more environmental destruction for the mere purpose of reburying the gold in central bank vaults.
Btw, I don't support Bitcoin or any other private money form but that all citizens (at least) be allowed to use their Nation's fiat in account form.
gold goes on forever owing to its unique physical properties.
Tom Hickey
So you are officially an idolater, Tom?
What divinity school did you attend so that others may be forewarned?
Besides which, some cultures have not valued gold at all (e.g. Isaiah 13:17).
What's so hard to understand that ethics wrt fiat creation and use trumps shiny metals?
gold goes on forever owing to its unique physical properties.
Tom Hickey
So you are officially an idolater, Tom-
———————————
He’s just stating a fact of the properties of materials, not auditioning for a Kay’s jewelry commercial
hehehe
AA,
What about the golden hemorrhoids? Those were made out of gold too....
Here:
“ 12 And the men who died not were smitten with the hemorrhoids; and the cry of the city went up to heaven.
4 Then said they, “What shall be the trespass offering which we shall return to him?” They answered, “Five golden hemorrhoids and five golden mice, according to the number of the lords of the Philistines; for one plague was on you all and on your lords.
5 Therefore ye shall make images of your hemorrhoids“
Had to make golden hemorrhoids to get out of their pickle,,,, better tell God that he shouldn’t have done that...
Today we have Preparation H, which actually shrinks hemorrhoidal tissue....
Fixed fiat or fixed quantity bitcoin would be better than gold as a 'hard' currency.
AA, maybe think of Bitcoin like Preparation H would have been back then if they had Chemistry?
Also .... let me know when you guys are going to start stoning all the LGBTs again so I can tell my LGBT friends to get the hell out of Dodge....
He’s just stating a fact of the properties of materials, ... Greg
Elsewhere, Hickey has claimed he is not a materialist but now reveals that he thinks a scarce metal trumps ethics (e.g. equal protection under the law) when it comes to fiat creation.
Post a Comment