26 upvotes, 1 direct replies (showing 1)
View submission: Don't invest recklessly
If all people were to sell their gold at once the price would also collapse, no?
It would, yes. However the likelihood of this happening is much lower than in Bitcoin. That said, gold is also considered speculative for "investors", and most people would recommend you keep very little of your portfolio in gold. I think Bitcoin and Gold are in the same asset category.
Lots of gold was purchased for 30$ or 300$, so the the value of all the gold in the world is also not the amount of money that was put into it.
How many dollars did Julius Caesar spend for his gold? My wording was specific, I called it "wealth tokens" at one point. A dollar bill represents wealth, it itself is just paper. For much of history you could pay people directly with gold or tokens for fair gold value. And in any case as above, bitcoin represents the same asset class as bitcoin.
Comment by Sogdiana at 25/12/2017 at 11:46 UTC
1 upvotes, 0 direct replies
Just to add before bretton woods agreement usd was backed by gold. US used its post-second world war political and military power to break usd link to gold. So about 40-60 years ago we had the same discussion about the value of paper money as we do now about crypto. Paper money evolved from a gold voucher to a proper currency.