Home Bitcoin News Bitcoin (BTC) Trying to be What Gold is and Vice Versa

Bitcoin (BTC) Trying to be What Gold is and Vice Versa

Bitcoin (BTC) Trying to be What Gold is and Vice Versa

A noteworthy point is that Even if Bitcoin crashes to 30k it’s still hundreds of thousands of percent above gold in 10 years. Gold is -3.39% since Bitcoin’s birth. Bitcoin is volatile, but it is not a bubble and it just looks like we need to develop some agreement on that point.

Peter Schiff Shared: “Both The Grayscale Bitcoin Trust and CathieDWood ARKK made their highs in Feb. 2021. Since then both $GBTC and $ARKK are down 47%. ARKK is also down 33% from its Nov. high and GBTC is down 44%. So far in 2022, ARKK is down 10.75% and GBTC is down 10.25% Bitcoin is down 11%.”

For clarity, Exchange-traded fund investing in bitcoin can be done with the Grayscale Bitcoin Trust (GBTC). Investors can get indirect exposure to bitcoin through the ARK Next Generation Internet ETF (ARKW) which holds the Bitcoin Trust in its portfolio.

Two bitcoin futures ETFs — the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF) — began trading in late October. VanEck’s Bitcoin Strategy ETF, the cheapest such offering yet, begins trading Tuesday under the ticker XBTF.

Random Community Reasoning for Bitcoin Nay Saying.  Gold’s industrial use accounts for a fraction of its market cap.  Most of its market cap is as a speculative trading instrument and most of the value of gold is derived from its trying to be what bitcoin is.

Yes, Bitcoin is a toy “California Gold Rush” simulator. The bits act a bit like gold mining but use vast quantities of electricity to generate them. Unlike gold, the bits have no inherent worth, other than to sell them to a greater fool for more money. It’s like useless gold.

Bitcoin isn’t created by using electricity. It doesn’t matter how much electricity miners use, only 6.25 bitcoin are created every 10 minutes. Bits don’t have inherent worth, that’s correct. It’s a poker chip unless you live in a communist country, where it’s priceless.

Visa cutoff their payment processing for moral reasons. Marijuana businesses had no access to banks even in states where it’s legal. Bitcoin fixes that, it’s decentralized and can be accepted for payment regardless of how you feel about the business.

Everyone eventually realizes that bitcoin is the only asset with inherent, complete structural integrity and that all other assets are structurally impaired, contrived, or propped-up by government artificial constructs and will become demonetized. Bitcoin becomes the ‘reset’.

But it’s arbitrary integrity. There’s no legal or political reason why your coins should retain any value at all. The code can be forked and used for any blockchain. When Bitcoin uses so much power that it dwarfs Google’s data centers and offices by 10x, it’s time to stop it.

Since, we’re no longer on the gold standard, it only has value because of supply and demand, and it also has intrinsic value (jewellery, electronics) which supplies part of the demand. I’m not a gold bug. I think central bank currencies are the way to go for short-term value stores.

People into Bitcoin look at cash and see it losing 90% of its value in less than 80 years and say “that’s horrible”. People into gold will see it going up and down and assume, right or wrong, that it’ll hold its value 100 years from now. I believe in investment, not hoarding.

To me, keeping your money in gold is a bit paranoid. You could put it in a 5-year CD and get maybe 1% if you’re lucky, which is terrible, but if inflation goes up, you’ll get higher APY, and you’re protected from loss by gov insurance. That’s the least risky possible investment.

Great stuff, Peter. Here’s a quick visual of all the “institutional investment” into the dog coin space. For bitcoin holders: how does this not concern you? Even the best bitcoin, Dogecoin, continues to collapse. Where’re the institutional investors that recognize #btc as the new #gold?

Speaking of Risk to Reward, you are highlighting the risk only and missing out on the reward. The reward when it comes will dwarf all these double-digit percentages of bitcoin. We call them volatility. I know in Stonk language you call them bear market. We don’t. Learn the new language.

The reward *may not come* because of the risk. How is this hard to understand? It’s fine if *you’re* willing to lose your entire investment chasing those rewards, but some people think this is low-risk and are spending money they *can’t afford to lose* to buy into the bubble.

The thing is we do not seem to have an agreement on the fundamentals. bitcoin is not a bubble. Bitcoin is volatile for now. Not a classical bubble by historic stonk terms at least. I do recommend investors though to exercise strict risk management rules.

 

 

 

 

 

 

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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