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On a side note.
Gold (ask price) went over $2k/oz this afternoon
 
tomthirtysix said:
I am absolutely certain there is not an infinite supply of gold.
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Of course there is, however there is so much gold in the mountains the value is more likely to grow in value slowly. BTC not so, as there can only be 21M coins, with a good percentage (I think around 27% or so from what I read) are lost and never to be recovered. Again, deflationary. Gold is inflationary. There's a cap on BTC, no cap on gold; that's what I meant by infinite supply. It will always be mined as long as there is value in it.

The coding that makes up bitcoin shows everything - 100% transparent. There can only be 21M bitcoins, because that's what the hard coded never able to change code was baked into bitcoin. Once the last bitcoin is mined, the fees to miners are no longer dispersed in brand new bitcoin, rather are transaction fees paid by the sender/receiver.

What makes bitcoin the value it's at today? Supply and demand, it's very simple. Think of 1 BTC as an expensive piece of artwork. Except with a bitcoin you can sell pieces of the coin. Not to mention some countries now consider btc legal tender. Keep researching and learning about bitcoin and you'll start to appreciate how it was designed, and how safe it is. No other asset can provide such freedom.

1 BTC is worth whatever you're looking to convert it to. Most people convert it to USD. You can also convert it to virtually any currency out there. Or, you can trade it for other types of crypto's. There are also stable coins which are pegged to the dollar, however I have no idea how safe these stablecoins are going to be soon. We already saw USD Coin crash last week to around 80 cents. It's now back up to .99 cents. Stable coins are too closely tied to the central bank for my liking.
 
I’m really trying to understand this, so don’t take it the wrong way.

Cannot gold or usd for that matter be converted to virtually any currency you want?

Unless backed by something tangible, isn’t basically everything tied to the dollar in some way? The dollar in my pocket is also worth whatever I want to convert it to, it just depends on the salesperson holding the thing I’m looking to convert it into, right?

I mean if we woke up tomorrow and the president said “the US dollar is no longer backed by the full faith and credit of the us govt” and the value dropped to nill, would not everything that isn’t a tangible asset, ie gold, silver, oil, pork belly’s etc..everything attached to that dollar bill all of a sudden lose tons of value?

If so, why is BTC the exception to that rule?

Surely another form of currency could rise up to take the place of the dollar, but wouldn’t that currency have to be back by something, some government, to be widely accepted as having some value?

The way I see it, BTC doesn’t have that backing. Let’s say somehow BTC becomes the standard, with only 21m coins and likely a few large holders of most of it, we all then become beholden to those holders. Want to buy a house? You need BTC. How do you get it?

Again, just trying to understand. :)
 
tomthirtysix said:
I am absolutely certain there is not an infinite supply of gold.
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But how would we ever know?

Who is going to come out and say ...... okay there's only two more pounds of gold to be found in the world?
 
This what started it all. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system.

Because gold was what people thought of as limited ( at that moment and of course difficult to mine ) and of course beautiful and could be used as we have seen, our government chose to use it as backing to the paper it was printing, and people being people felt the love of gold so they accepted the paper.

*** Time to interject something here. When silver was discovered in huge quantities in the west, the government didn't know what to do with it, and that is where the Silver Dollar began, a way to "rid" themselves of pesky silver. And I just pulled the following off the web: Coinage of silver and gold coins started in 1794 and 1795. But at first, these coins didn't circulate. The Coinage Act of 1792 set the ratio of silver to gold at 15:1, which was different than the world market. U.S. gold coins were undervalued compared to silver, so they were exported and melted.

You know what, this could be so long and perhaps useless because all wanted to address your question about gold being converted into any currency, and of course, Yes it can. I think the better question is What Is Currency? Probably anything as long as we can believe in it. Today I believe Rod said that our currency is just piles of paper, but, it is the faith of all the peoples of the world that we will stand by it and perform whatever it was that we used the paper for. And I expect that is true of all countries currency.

We are living on the good faith of fellow man. Otherwise we would default.

TPC, you asked a great question. I didn't mean to bastardize it.

Like you, my lack of understanding makes me ask... so how does BTC help or solve this problem, and a second thought, there are only 21 million mined.

My apologies for this epistle, it was a pug fit.
 
xyz123 said:
Feds raised interest rates .25%.. gold almost always has a temp spike after a fed hike.
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Is it tracking the FED or is it tracking the banking collapses?
I say that because it was tickling $2k last week before the increase.
 
CigarStone said:
But how would we ever know?

Who is going to come out and say ...... okay there's only two more pounds of gold to be found in the world?
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Well, there can physically only be a finite amount of gold ore on the planet -- it is not a renewable resource. Whether humans have the capability to retrieve it all is another question, altogether.
 
kann said:
Well, there can physically only be a finite amount of gold ore on the planet -- it is not a renewable resource. Whether humans have the capability to retrieve it all is another question, altogether.
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Can't there be gold that we haven't found out about yet? Or haven't found how to retrieve yet? Isn't the earth capable of continuing to make gold?

I get it though, we have probably depleted 95% of what's there and we won't be around long enough for more to be made.

What I don't get is ......... who made the rule that there is only xx amount of bitcoin? Who monitors that? Can't that same entity retrieve your password if you lose it?

I know zero about crypto but I have asked these questions and have never been give an actual answer.
 
CigarStone said:
Can't there be gold that we haven't found out about yet? Or haven't found how to retrieve yet? Isn't the earth capable of continuing to make gold?

I get it though, we have probably depleted 95% of what's there and we won't be around long enough for more to be made.

What I don't get is ......... who made the rule that there is only xx amount of bitcoin? Who monitors that? Can't that same entity retrieve your password if you lose it?

I know zero about crypto but I have asked these questions and have never been give an actual answer.
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The ultimate number is close to the max capacity of a 64-bit floating point number.

The decreasing supply algorithm mimics mining metals where it decreases over time.
 
Scap said:
The ultimate number is close to the max capacity of a 64-bit floating point number.

The decreasing supply algorithm mimics mining metals where it decreases over time.
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English please?😁
 
CigarStone said:
English please?😁
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What's the biggest number you can type on a simple eight digit calculator?
Answer 99,999,999

This is why bitcoin is limited. They can only type a maximum number of characters into the fixed length of the number they use. The fixed length will not be expanded.
 
Scap said:
What's the biggest number you can type on a simple eight digit calculator?
Answer 99,999,999

This is why bitcoin is limited. They can only type a maximum number of characters into the fixed length of the number they use. The fixed length will not be expanded.
Click to expand...
So wouldn't all crypto be limited then? Which isn't the case
 
Scap said:
What's the biggest number you can type on a simple eight digit calculator?
Answer 99,999,999

This is why bitcoin is limited. They can only type a maximum number of characters into the fixed length of the number they use. The fixed length will not be expanded.
Click to expand...
I appreciate your help. This still makes zero sense to me. In something as advanced and complicated as crypto, how could the limitation of a simple calculator be the foundation on which it is built?
 
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