Is It Time For Silver?

Here's an interesting chart. It's pretty much a Bitcoin/Gold Ratio chart. Money going into Bitcoin has to come from somewhere. Perhaps everyone is buying Bitcoin with their stimulus checks.

Personally, I never thought Bitcoin would be a success. I thought Gresham's' Law would kill it.

 

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Okay, this brought me up short. "Bad money drives good money out of circulation" -- and what could be worse money than a theoretical construct proudly and explicitly backed by NOTHING?

Now I'm expecting Gresham's "law" to give Bitcoin and its ilk final victory over all other forms of money.

 

As Paddyman98 would say..."hi yo Silver away"....look for the US to be electrified...infrastructure upgrades..solar connectivity...evs just part of the fabric....

 

Perhaps...but let's not forget about the very nature of crypto-currency; it's highly desirable and in limited supply. "Value = Demand/Supply". Bitcoin (currently) is increasing in value relative to gold and the Dollar. Who wants to spend a bitcoin when it can double in relative value over night?

Personally, I would hoard Bitcoin and only use it when I need it's unique qualities of convenience and/or anonymity.

 

Will you feel the same way when it's steadily dropping in value? Bitcoin's supply is limited, but the number of potentially competing cryptocurrencies is not.

 

I agree. I thought crypto currencies would eventually reach equilibrium and their exchange rates would fluctuate against fiat currencies...like Gold.

Reputation seems to play into the equation, too. People seem to gravitate towards currencies perceived as most reliable and useful. That should keep prices skewed towards the most desirable crypto-currencies.

Anyway, speaking for myself, if I have a choice between paying with two different currencies, I'm gonna pay with the one I value the least.

 

Gold is not a fiat currency.
The dollar is a fiat currency.

 

"I agree. I thought crypto currencies would eventually reach equilibrium and their exchange rates would fluctuate against fiat currencies...like Gold."

I see what you're saying. I wasn't saying that Gold is a fiat currency. I was "trying" to say I thought Bitcoin would eventually fluctuate "like" Gold...relative to whatever fiat currency is chosen (e.g. U.S. Dollar).

In other words, that Bitcoin would eventually behave like Gold.

 

It does, on steroids!

 

I would love to offer a positive response. However, this is a place for Coins, not politics. It's difficult (I know!) to discuss currencies without drifting into politics. The two are so intertwined.

 

Crap...I've misplaced my foil.

 

Ah...found it. Whew! I just had it refitted too!

 

Does he get HBO on that thing?

 

And NFL RedZone!

 

Poor fella...probably thinking..."Geeze, the things I gotta do for a treat!"