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Bitcoin and Ethereum are 'cannibalizing' gold (and silver)

 
Anonymous Coward
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07/10/2017 01:29 AM
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Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
This is coming at the expense of gold, says Tom Lee, the managing partner and head of research at Fundstrat Global Advisors. In fact, he thinks that the growing preference for the cryptocurrencies over gold is actually helping contribute to the torrid gains in the fledgling products.

Bitcoin is up a whopping 172% percent this year, closing at $2,607.02 per coin on Thursday. Ethereum has skyrocketed 3,200% over the same period, sitting at $266.01.

One main factor driving demand for cryptocurrencies is the reduction in supply that's been seen in recent months, according to Lee. He notes that the rate of bitcoin units added has been more than halved over the past year, to 4.4% from 9.3%. With mining slowing down, bitcoin won't reach its theoretical maximum number of units until 2045 or later.

Meanwhile, Lee finds that gold production has risen "sharply" since 2009, and now sits at 3,100 metric tons, the highest on record.

"Cryptocurrencies are cannibalizing demand for gold," he wrote in a client note on Friday. "Bitcoin is arguably becoming a scarcer store of value. Investors need to identify strategies to leverage this potential rise in cryptocurrencies."

MORE at:
[link to www.businessinsider.com]
Anonymous Coward
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07/10/2017 01:49 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
I envision all metaltards working with cryptotards to upset an evil system.

yoda
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07/10/2017 01:56 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Brass is always a solid investment.
Anonymous Coward
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07/10/2017 02:09 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Neo

Nuff said
RESt

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07/10/2017 02:11 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
I envision all metaltards working with cryptotards to upset an evil system.

yoda
 Quoting: An Enchanter


That's funny.

The coin named "Metal" was up 25% today. U'd be good at this.
For my yoke is easy and my burden is light
Anonymous Coward
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07/10/2017 02:12 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Ultimately the value of anything is how much energy is required to reproduce it. For gold the energy input is energy to mine it, then smelt it, refine it and cast it into coins and bars and deliver it to the market.

Right now it costs $1,100 to mine an ounce of gold and deliver it to market. For comparison it costs banks 13 cents to print a $100 bill. It costs $20 to drill and refine a barrel of oil, which banks can counterfeit in value for 3 cents.

An economy is trading things related to production, and production begins with energy in our modern economy. So to have any real value, money has to be related to energy input. You can distort prices with credit, and banks have done just that. But nothing can be distorted forever, there's a breaking point.

The value of crypto-currencies would then be related to how frequently they are used in day to day transactions, and how much energy is input to generate a single unit or coin.

Right now all this is speculation because 1) cryptocoins are not wide spread use commercially and 2) it's relatively inexpensive to mine a crypto-currency.

And, the number of crypto-currencies that can be created is limitless, just like paper currencies based on promises.

Eventually it all returns to cost of production and demand for use by the economy. Right now PMs aren't in demand, but if they ban cash, I guarantee within a couple days you won't be able to buy a single ounce of gold or silver.
RESt

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07/10/2017 02:12 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Neo

Nuff said
 Quoting: Anonymous Coward 11673047


And then there was one
For my yoke is easy and my burden is light
Anonymous Coward
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07/10/2017 02:12 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Now you know why Bitcoin was invented. Nothing but a pressure value to keep people away from Gold and other PM's.

As people lose faith in the regular currencies they need a way to keep people in the system and Bitcoin is is the system. The governments made it complicated so only the nerds, criminals and Conspiracy theorists would go to it. They can control it anytime they want to, it is not time yet.

They let the price go up in order to sucker all the mal-contents in. But at the end of the day Bitcoin is the same as the dollar. Backed by nothing and it's only value is what it can be converted into dollars. when the dollars become worthless then Bitcoin becomes worthless.

When TSHTF and the dollar is worthless then see where all the money runs too. Bitcoin and the rest of those crypto-currencies are just a side-show until the Big-Show starts.

.
Anonymous Coward
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07/10/2017 02:13 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
Gold is old news.

People will never make huge profits with gold again. The gold train that rose from $300 an oz to $1800 an oz is over. Manipulators will never let gold fluctuate that wildly again.

Bitcoin is the money maker now. Just how long will this last? Took gold 3-4 years to reach its peak. Lets hope bitcoin keeps rising!!
Anonymous Coward
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07/10/2017 02:15 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
This is coming at the expense of gold, says Tom Lee, the managing partner and head of research at Fundstrat Global Advisors. In fact, he thinks that the growing preference for the cryptocurrencies over gold is actually helping contribute to the torrid gains in the fledgling products.

Bitcoin is up a whopping 172% percent this year, closing at $2,607.02 per coin on Thursday. Ethereum has skyrocketed 3,200% over the same period, sitting at $266.01.

One main factor driving demand for cryptocurrencies is the reduction in supply that's been seen in recent months, according to Lee. He notes that the rate of bitcoin units added has been more than halved over the past year, to 4.4% from 9.3%. With mining slowing down, bitcoin won't reach its theoretical maximum number of units until 2045 or later.

Meanwhile, Lee finds that gold production has risen "sharply" since 2009, and now sits at 3,100 metric tons, the highest on record.

"Cryptocurrencies are cannibalizing demand for gold," he wrote in a client note on Friday. "Bitcoin is arguably becoming a scarcer store of value. Investors need to identify strategies to leverage this potential rise in cryptocurrencies."

MORE at:
[link to www.businessinsider.com]
 Quoting: Anonymous Coward 31457315



"Bitcoin is arguably becoming a scarcer store of value"


cruise



Haha! Now that's some funny shit right there!



Bitcoin options...
Anonymous Coward
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07/10/2017 02:23 AM
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Re: Bitcoin and Ethereum are 'cannibalizing' gold (and silver)
I envision all metaltards working with cryptotards to upset an evil system.

yoda
 Quoting: An Enchanter


They already are. There are groups that pool a certain amount of gold together, say a ton and then they build an encrypted blockchain on that amount of gold and then create the coins. So say 1 crypto-gold-coin would be equal to 1 gram of physical gold.

Then the blockchain is connected to those gold vending machines you saw like 2-3 years ago. So you can be at an airport and if you need a gram of gold you just go to the ATM machine and withdraw a gram.

They can embed gram strips of gold in plastic bills as well. With gold threads I bet they could even go to centigrams of gold.

A blockchain is just like an encrypted contract that people can make between themselves. Banking used to be necessary for these kinds of arrangements to handle the money transactions, but they aren't really needed any longer. They may try to transition to this technology, but luckily they will face competition.

They aren't used to competition since 1913.





GLP