Are Bitcoin and Gold Prices Correlated?

Bullion, Mining Stocks, News, Information & General Chat
User avatar
Golden Bull
Rank 5
Rank 5
Posts: 58
Joined: 09 June 2016
Country: United Kingdom
Great Britain

Are Bitcoin and Gold Prices Correlated?

Postby Golden Bull » 01 August 2016

I found this subject interesting. Another scam to link bitcoins to physical Gold like they did with the highly leveraged paper gold market. Any thoughts?

gold-nugget-728x485.jpg


Bitcoin has been called 'digital gold', but does this mean the two markets behave similarly?

This relationship has been top of mind for industry observers for some time, as media coverage has often championed the idea bitcoin is a new 'safe haven' asset.

But while some market observers have claimed there is a correlation between bitcoin and gold, members of the digital currency trading community disagree. Further, some have collected data they believe shows this relationship is speculative at best.


http://www.coindesk.com/bitcoin-gold-prices-correlated/

User avatar
SilverWarrior
Rank 4
Rank 4
Posts: 41
Joined: 04 July 2016
Country: USA
United States of America

Re: Are Bitcoin and Gold Prices Correlated?

Postby SilverWarrior » 02 August 2016

I personally don't see much of a correlation between the two. I feel that Bitcoin is a form of currency, while gold is more of an investment. I'm certainly no expert on Bitcoin though.

User avatar
Gold Jodie
Rank 5
Rank 5
Posts: 64
Joined: 03 July 2016
Country: Canada
Canada

Re: Are Bitcoin and Gold Prices Correlated?

Postby Gold Jodie » 12 August 2016

SilverWarrior wrote:I personally don't see much of a correlation between the two. I feel that Bitcoin is a form of currency, while gold is more of an investment. I'm certainly no expert on Bitcoin though.


There's no point in having a gold standard if we're just going to undermine it with fraction reserve banking. The reason governments allowed fractional reserve banking under the gold standard was because gold was too scarce which made the money supply 'inelastic', meaning it couldn't grow with the economy. The reason gold was used as money before the industrial revolution was because it was rare, hard to counterfeit, and easy to carry. But the problem with gold has always been that it is hard to secure. That's how banks got started.

User avatar
Freddy
Rank 5
Rank 5
Posts: 79
Joined: 18 June 2016
Country: UK
Great Britain

Re: Are Bitcoin and Gold Prices Correlated?

Postby Freddy » 15 August 2016

SilverWarrior wrote:I personally don't see much of a correlation between the two. I feel that Bitcoin is a form of currency, while gold is more of an investment. I'm certainly no expert on Bitcoin though.


Not for me, Bitcoin is like the black market currency. If government cannot control it, then any person(s) ripped of using this currency will not have protection from the government. In summery, the bitcoin suffers the same dangers as anything in the black market. It can be easily stolen and won't be easy to catch the thief. Don't expect the government to help you. Stick with Gold, 6000 years says so.

User avatar
Thornside
Rank 6
Rank 6
Posts: 82
Joined: 12 June 2016
Country: United States
United States of America

Re: Are Bitcoin and Gold Prices Correlated?

Postby Thornside » 18 September 2016

Bitcoin is like the black market currency. If government cannot control it, then any person(s) ripped of using this currency will not have protection from the government. In summery, the bitcoin suffers the same dangers as anything in the black market. It can be easily stolen and won't be easy to catch the thief. Don't expect the government to help you.

User avatar
Freddy
Rank 5
Rank 5
Posts: 79
Joined: 18 June 2016
Country: UK
Great Britain

Re: Are Bitcoin and Gold Prices Correlated?

Postby Freddy » 01 October 2016

Bitcoin appears to have the same volatility as stocks. A stock's value can plummet on bad news even when the bad news is faked and that results in major losses to holders. The same can happen to bit coin with news of some big hacks and then people will panic and dump their bitcoins. If bitcoin is really a better alternative than other currencies then it is sure to become a major target by the central banks. I won't be surprised if major bitcoin holders start dying of natural causes or even ugly murders if the banks begin to have a hard time fighting it.

User avatar
Bounty
Rank 6
Rank 6
Posts: 85
Joined: 21 June 2016
Country: USA
United States of America

Re: Are Bitcoin and Gold Prices Correlated?

Postby Bounty » 14 November 2016

At any given time, it certainly is. You can trade gold for bitcoin or bitcoin for gold. Bitcoin changes in value relatively quickly so that will not stay the case for very long, but that is a difference in degree rather than in kind. If you have a million dollars in gold and trade it for a million dollars if silver, your wealth is going either rise or decline depending on the exchange rate. The only way to always have a million dollars is to have a million actual dollars, but that doesn't mean much of anything.

User avatar
TonyJ
Rank 5
Rank 5
Posts: 74
Joined: 21 June 2016
Country: Spain
Spain

Re: Are Bitcoin and Gold Prices Correlated?

Postby TonyJ » 22 November 2016

Bitcoin could be the Trojan horse to get the people onto digital money. After we are on digital money if the powers that be don't like your politics they just hit a switch and boom, you can't afford to buy a tank of gas, a stick of gum......nothing.

User avatar
Golden Bull
Rank 5
Rank 5
Posts: 58
Joined: 09 June 2016
Country: United Kingdom
Great Britain

Re: Are Bitcoin and Gold Prices Correlated?

Postby Golden Bull » 10 February 2017

The intrinsic value of Bitcoin are all of the improvements you mentioned it has over gold. There's value in a secure public ledger, there's value in decentralization, there's value in payment processing, there's value in having complete control over your own wealth. How can you begin listing all of Bitcoins improvements on gold, and not recognize its value!

User avatar
Max Metals
Rank 3
Rank 3
Posts: 21
Joined: 04 August 2016
Country: Mexico
Mexico

Re: Are Bitcoin and Gold Prices Correlated?

Postby Max Metals » 02 April 2017

Thornside wrote:Bitcoin is like the black market currency. If government cannot control it, then any person(s) ripped of using this currency will not have protection from the government. In summery, the bitcoin suffers the same dangers as anything in the black market. It can be easily stolen and won't be easy to catch the thief. Don't expect the government to help you.


The problem with gold is: try to cross a border with gold. You can't do it. They will take it. Yes you can store your gold somewhere and with your claim on it cross a border. But the government can still confiscate the centrally stored gold. Why wouldn't they? They make a law, it's illegal and they use massive violence to uphold their law. They can't take bitcoin. The word 'intrinsic value' is meaningless. nothing has intrinsic value. It's an atom.


Return to “Gold Council”

Who is online

Users browsing this forum: No registered users and 1 guest

GOLD & SILVER PRICES


[Most Recent Quotes from www.kitco.com] [Most Recent Quotes from www.kitco.com]

Share & Follow Gold Silver Council


Follow Gold Silver Council