The Subjective Valuations Of Bitcoin & Gold
In this editorial I aim to contend that the physical properties in gold are the same found in the digital properties of Bitcoin. That both are “social contracts” or spoken and unspoken agreements between humans, which can be considered intellectual property as well. Bitcoin and gold revolve around their usefulness and this is an indirect result of their....
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While reserve-backed crypto assets and stablecoin market valuations increased a great deal during the last year, gold-backed cryptocurrencies have also seen their market caps swell. Between the tokens tether gold and pax gold, the market valuations of these two gold cryptos are nearing a billion dollars in value with $742 million today. Tether Gold’s Market Cap Swells Over 19,000% in Less Than 2 Years, While Pax Gold Increased by More Than 15,000% On February 21, 2020, the market valuation of tether gold (XAUT) was $2.1 million and 23 months later, the valuation has increased by....
Bitcoin is not a gold standard as it is independent, without the intervention of any central bank or government agency. There has been a lot of comparison between bitcoin and gold in the recent times. Bitcoin has been compared to gold in many aspects. In fact, bitcoin is also called digital gold for a reason due to various similarities it shares with the yellow material. However, referring to bitcoin as a gold standard may not be relevant. The gold standard is a reference to the monetary system that was based on the value of gold. While most countries stopped following the gold standard....
A new digital currency has been announced, which uses prime numbers as its proof of work. Primecoin is still in beta, but its goal is to provide a proof of concept that a digital currency can produce something useful besides its subjective market value. One of the criticisms always put against bitcoin is that the cryptographic computation that provides proof of work has no intrinsic value. This is true - the bitcoin market places a subjective value on the currency, just as any other commodity. However, at least physical coins can be melted down and used to make something else. Long before....
While Musk said Schiff "might as well" have crypto in lieu of gold deposit statements, he did warn that digital currency valuations may be running hot While his electric car company announced a Bitcoin purchase weeks ago, Elon Musk finally became a true Bitcoiner last night by engaging in a time-honored cryptoTwitter pastime: dunking on Peter Schiff. Yesterday morning Schiff, the noted gold bug and Bitcoin skeptic, posted a Tweet thread in which he criticized Elon Musk’s comment that Bitcoin is a flawed currency, though still better than fiat alternatives:According to @elonmusk "Bitcoin is....
The Winklevoss Twins have described Bitcoin as better than gold because it experiences ‘a lot less volatility’ and is a better store of value at the moment. They cited a Wall Street Journal story in May which described how the virtual currency has been more stable than gold over the last 28 days. Tyler Winklevoss said: “So I think investors who have gold in their portfolio and other precious metals have started to look to Bitcoin as a better store of value. It’s got better characteristics than gold itself. So it’s actually better at being gold than gold. We are seeing investors recognise....