Crypto-Currency Wants To Make Dollar/Gold Obsolete

This is a discussion on Crypto-Currency Wants To Make Dollar/Gold Obsolete within the Cryptocurrencies forums, part of the Markets category; Hey everyone, I've been reading some stuff on an new open source peer-to-peer electoronic currency called Bitcoin. Looks like it ...

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Old May 25, 2011, 1:48pm   #1
 
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Crypto-Currency Wants To Make Dollar/Gold Obsolete

Hey everyone, I've been reading some stuff on an new open source peer-to-peer electoronic currency called Bitcoin. Looks like it could make sense, as it would be peer-to-peer and encrypted, kind of makes central banks obsolete and the inflation they bring. The gold bubble would naturally burst

What do you think?
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Old May 25, 2011, 1:57pm   #2
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

Great way to get my black market transfers done.

You may want to check out the ill-fated Mondex. That has bank backing (NatWest, Bank of Canada etc) and even that didn't grab the imagination of the-man-in-the-street. They actually had an entire town (Swindon) for a test bed to find out nobody was happy using it.

Nah mate, I'll stick to my folding and jingling stuff - and those few bits of plastic too....
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Old May 25, 2011, 4:08pm   #3
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

If you think Gold is in a bubble then my advice is very simple, stay away from all sorts of investments and if you have any spare cash keep it on deposit, ie keep your finances really really simple.
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Old May 25, 2011, 7:27pm   #4
 
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

bonker started this thread
Quote:
Originally Posted by anley View Post
If you think Gold is in a bubble then my advice is very simple, stay away from all sorts of investments and if you have any spare cash keep it on deposit, ie keep your finances really really simple.
I think gold is looking like a bubble now, everyone is saying buy gold when really it's just a lump of metal.

The bubble is being supported by more than just inflation fear really. There seems to be a whole chunk of the media thats talking gold up as a component of a new reserve currency. The crypto currency thing could blow this out of the water. I found a discussion of this here:
http://mobile.co.nz/2011/05/25/new-crypto-currency-wants-to-make-dollargold-obsolete/

I want out of cash just as an inflation hedge, not hoping for a new reserve jackpot
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Old May 26, 2011, 8:48am   #5
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

No, hardly anyone is saying buy gold which is why it's far away from being in a bubble. People must learn to use the word correctly, ie just because something goes up, it's not a bubble.

The only people talking about Gold are those in or who have a connection to the financial markets. Prices enter bubbles when people OUTSIDE of the markets start to know and hear about it.

Go down to your local supermarket, and start asking people about Gold, its price, and whether it's up or down over the last 2-3 years. 80% of them won't have a clue. That is why Gold is far from being in a bubble.

Contrast that with the 2 last big bubbles we had, (US) property and internet stocks. If you had gone to your local supermarket and asked about property/internet stocks, 80%+ would have known what's going on etc, hence it was a bubble.

Summary: Virtually nobody outside the markets knows anything about Gold, hence NO bubble, it's just a strong market. Plus, another important point to realise is how can Gold be in a bubble when so many of the Gold Mining shares are down this year, again, hardly a bubble.

PS. Also whoever says Gold is going to be part of some new currency is either an idiot or has something to sell you. Common sense says it's impossible because there's not enough gold to go around these days. Same reason why no currency can ever be backed by Gold, not enough.
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Old May 26, 2011, 9:27am   #6
 
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

bonker started this thread "No, hardly anyone is saying buy gold which is why it's far away from being in a bubble. People must learn to use the word correctly, ie just because something goes up, it's not a bubble."

Whoa, hang on! The "buy gold" call is all over the media, there's even stalls opening up in town centres all over the country buying peoples gold earrings. The entire alternative media is screaming about buying gold. Just type "gold" into youtube, every crackpot in town is predicting the collapse of the dollar and gold as the new world reserve currency. It's classic bubble panic/paranoia
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Old May 26, 2011, 10:58am   #7
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Re: Crypto-Currency Wants To Make Dollar/Gold Obsolete

Quote:
Originally Posted by bonker View Post
Whoa, hang on! The "buy gold" call is all over the media, there's even stalls opening up in town centres all over the country buying peoples gold earrings. The entire alternative media is screaming about buying gold. Just type "gold" into youtube, every crackpot in town is predicting the collapse of the dollar and gold as the new world reserve currency. It's classic bubble panic/paranoia
You couldn't be more wrong about the stalls in the market because they're BUYING Gold, not selling it. Plus, they would be around if Gold was at $500 because their business model is all about bidding chavs £10 for metal that's got a scap worth of £40. Nothing like waving hard cash in from of an idiot to tempt him/her.

When stalls start setting up to SELL Gold then that's will be a big event, but like I said they're buying from the public, whereas in bubbles the public always buys, never sells.

The media outlets you're referring to are not read or seen by the majority, therefore the average person on the tills at Tesco doesn't know about the recent price or what it's done. Case in point, I've just asked my Polish cleaner about Gold, and she knows nothing.

That right there is the big difference between a bubble and non-bubble. A bubble is when EVERYONE knows about it.
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