Sorry... Bitcoin is not Gold and Litecoin is not Silver

A

Andre@Krypt0

There has been much comparison (in the finacial world and in the media) of Bitcoin being analogous to Gold and Litecoin being similar to Silver. This is not an accurate depiction of the current state of these two digital currencies. There is way too much volatility in crypto to even be considered a stable hold of value (unless you are HODL). As for transactionional purposes, again the volatility in price makes it impossible to purchase goods or services. What it should be compared to is fiat currency in the physical form (e.g. US dollar), with Bitcoin being analogous to the hundred dollar bill and Litecoin would be the twenty dollar bill. BTC and LTC are not yet there in terms of being a replacement bill capable of transacting ubiquotiously, although that can happen once BTC and LTC market capitalizations achieve equilibrium.

Gold/Silver characteristics are in a league of their own and warrants a separate thread.

Thoughts? ...
 
derbeurze said:
To be honest, the "functionality" of BTC to be used as a transaction method is far from efficient, I mean you buy today 1 BTC, and the value you hold in your e-wallet might be very high, and then tomorrow nothing, zero. You'll have to wait again a few months, maybe years to have the same illusion of owning something valuable, it's really stupid.
More...

I dont think anyone who knows what they are talking about would call bitcoin stupid.

Only credible replies please!!!
 
The biggest difference between cryptocurrency and gold/silver is that
cryptocurrency supply is infinite / infinity / unlimited and
gold/silver supply is limited.

you can generate an infinite amount of cryptocurrencies.


To generate more cryptocurrencies, you don't need so much resources.
To dig for gold/silver, you need a massive amount of investment.
 
People should think of Bitcoin as a tool. A tool that has very specific use cases that cannot be handled by any other asset class.

Since 2017 a niche financial system emerged that is similar to Eurodollar deposits and uses Bitcoin and stablecoins as medium of exchange.

In the western world there is barely any use case so the trade is more or less a top down efficiency transfer. Tier one economies provide liquidity and structure and lower tier economies gain efficiency and access to the USD.

The implication of BTC being either internet cash or digital gold is utter bullshit that is touted by fanatics who fail to look at actual data.
 
A tool can be a screwdriver or a tool can be a swiss army knife...

Only a fool will try to hammer a nail with his screwdriver.
 
Last edited:
maxinger said:
The biggest difference between cryptocurrency and gold/silver is that
cryptocurrency supply is infinite / infinity / unlimited and
gold/silver supply is limited.

you can generate an infinite amount of cryptocurrencies.


To generate more cryptocurrencies, you don't need so much resources.
To dig for gold/silver, you need a massive amount of investment.
More...
The topic is about Bitcoin and LiteCoin - which are not infinite.

And the supply of Gold/Silver are not limited. Mining slows down (not much really) when price drops, and picks back up when the price picks back up.

Apples to oranges comparison in any case.
 
MrMuppet said:
Since 2017 a niche financial system emerged that is similar to Eurodollar deposits and uses Bitcoin and stablecoins as medium of exchange.

In the western world there is barely any use case so the trade is more or less a top down efficiency transfer. Tier one economies provide liquidity and structure and lower tier economies gain efficiency and access to the USD.

The implication of BTC being either internet cash or digital gold is utter bullshit that is touted by fanatics who fail to look at actual data.
More...

Very interesting. Thank you for this
 
Andre@Krypt0 said:
There has been much comparison (in the finacial world and in the media) of Bitcoin being analogous to Gold and Litecoin being similar to Silver. This is not an accurate depiction of the current state of these two digital currencies. There is way too much volatility in crypto to even be considered a stable hold of value (unless you are HODL). As for transactionional purposes, again the volatility in price makes it impossible to purchase goods or services. What it should be compared to is fiat currency in the physical form (e.g. US dollar), with Bitcoin being analogous to the hundred dollar bill and Litecoin would be the twenty dollar bill. BTC and LTC are not yet there in terms of being a replacement bill capable of transacting ubiquotiously, although that can happen once BTC and LTC market capitalizations achieve equilibrium.

Gold/Silver characteristics are in a league of their own and warrants a separate thread.

Thoughts? ...
More...
It can be compared to gold when it's supply is sparse and it's still in the process of price discovery by a burgeoning demand.
 
You must log in or register to reply here.
Back
Top