Bitcoin vs Gold as a store of value
- Thread starter Daal
- Start date
That is probably the strongest argument against all government-backed currencies. You're right that government cannot be expected to impose self-restraint at the point when the majority of the people supporting government (assuming that we are talking about a democratic government here) are not responsible people. So why not have an asset or commodity-backed digital currency? Something with intrinsic fundamental value.
It is an actual example. You can call it extreme, but the people that lived through it were actually screwed by their government.
And let's talk about extreme - during the banking crisis, the US created $26 trillion to shore up the banks (including European banks).
Or Europe - what do the Greek people think about the currency management of the Euro by their leaders.
Or take the yen - Shinzo Abe totally inflated it. My point is - you can trust the inflation rate of Bitcoin - it's hardcoded, but you can't trust the governments to not inflate the currency to death.
1. It can still be changed with consensus.
2. You can also trust the annual mining % of gold.
3. Bitcoin small inflation rate is irrelevant because of the possibility of forks and the existence of other even better cryptos. You wouldn't worship gold if there was a Gold 2.0 that is cheaper and better than gold, would you?
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You're still asking the same question for the 4th or 5th time (just changing the words, slightly), it must really concern you
I hope you'll get the answer you're looking for...
Righto, I was looking at another bit-options exchange, derebit...
I'll have a close look at this ledgerX thing...
So... I had time to look at LedgerX @johnarb.
It's not for retail traders...
a. I'm not an “eligible contract participant” as defined in section 1a(18) of the Commodity Exchange Act
b. I'm not US based and US banked
c. I don't have a valid legal entity identifier.
Besides this, looking at the data... strike prices at 5k, 10k, 15k, 25k and 50k... with spreads the equivalent to the distance between Earth and the Moon, that's not a terribly good product to trade. It looks like those small cap stocks with some options that never trade because the spreads are so wide.
I kinda get wide spreads, because of potential vol swings... but the gaps between those strike prices are to big as well.
Deribit at least has strikes at every 500 interval.
Thanks for the info. I only trade the underlying (cryptos) so didn't know all the details.
"Bitcoin is a currency without a government. But, one may ask, didn’t we have gold, silver and other metals, another class of currencies without a government? Not quite. When you trade gold, you trade “loco” Hong Kong and end up receiving a claim on a stock there, which you might need to move to New Jersey. Banks control the custodian game and governments control banks (or, rather, bankers and government officials are, to be polite, tight together). So Bitcoin has a huge advantage over gold in transactions: clearance does not require a specific custodian. No government can control what code you have in your head."
I bet a little lobotomy controls it just fine...