Sorry Gold, You Are Being Left In The Stone Age

Gold (NYSEARCA:GLD) is being left behind by technology. The technology is Bitcoin (Pending:COIN)(OTCQX:GBTC). It is not even the recent price action that gives Bitcoin it's advantage, it's the functionality. Below a chart that explains the differences between different traits of money.

The biggest advantage of Bitcoin is the ease of transfer over Gold. How long would it take you to send an oz in the cross coast in the US? Well you could overnight it and insure it which will cost at least $75. So your gold would arrive in about 12 hours. Compared to Bitcoin, you can send it anywhere in the world instantly and confirmed on its ledger within hours. All for pennies, a 99.9% savings over gold. It is also difficult to spend gold. Typically you will need to sell gold to buy fiat currency to then buy what you want/need. For most products and services, there is no need to convert before spending.

Gold does have historical value over Bitcoin. Salt used to be more valuable than Gold. Historical usage is put to side by new technology. Historically, horse usage was much higher until it was replaced by engine. Often the last argument for Gold is intrinsic value. Sure it looks pretty and can transfer electricity well but many other metals do that as well. If the price of Gold skyrockets, producers will look for cheaper alternatives (which exist) which would push down price.

Bitcoin will continue to press down on Gold. Bitcoin as a new technology, many fear it. Humans have a history of fearing or rejecting new technology. Bitcoin is currently 2.8% of the silver market and .25% of the Gold market. I see Bitcoin growing to a larger percentage by 2020. I see Bitcoin at $4000-5000 by the 2020 halving event which will reduce new supply even further. At In that same time frame I do not see Gold passing $1750.

http://seekingalpha.com/article/4032485-sorry-gold-left-stone-age

Bitcoin is seperate to the world economy in it's decentralised from human decisions base on greed ... and a lot more scare than other stores of value like gold. 21 million bitcoin.

Current upward pressure is due to world issues like India dumping some of her notes, china's devaluing it's yuan and so chinese shifting to btc. And a store of value due currencies devaluing against the US dollar since the interest rate hike. On top of cheap and quick global financial transactions.

Australia, with our certainty of the dollar further devaluing against the US, it's a method of avoiding our government attacking our wealth due to their bad economic management. Consider you place value in a currency that at the government's whim, or political advantage, loses value. How logical is that?
Add to this, Australia will soon be dumping the $100 note, speeding the path towards a cashless world.


As for losing my cash this year, it was due to paypal (chargeback scam)  and ebay, not bitcoin. Both paypal and ebay are history to me. Cryptocurrency and more so blockchain technology will change everything and for the better.

p.s. Anyone with commercial bank investments like shares, these will be the next to head towards extinction. Soon we will no longer choose to be gouged and slowed down by middle men.

Bitcoin explained and made simple

You would send you wallet address and I would transfer the amount. Same as if I would as if it was via our bank accounts, except no middle charges.

Wallets can be on computers, mobiles, or hard on a kind of UBS.

Via mobile, scan the pub's QR code, enter the amount, send the payment ... drink the beer.

p.s
confirmation are quicker via a cryptocurrency like Litecoin. Usually 2.5 minutes compared to the first usually 10 minutes with bitcoin.

Trade it back to the local fiat currency

i.e

https://www.coinspot.com.au/trade/btc

https://localbitcoins.com/

https://bitsquare.io/

The three below links, bitcoin can also be purchased via them.

What Australian shops accept bitcoin?

____ wrote on Dec 24^th, 2016 at 9:12am:


What is a UBS?