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comment by geneusutwerk
geneusutwerk  ·  4226 days ago  ·  link  ·    ·  parent  ·  post: Bitcoin loses 44% of its value in one day. Dropping from over $250 to around $150

I can imagine bitcoins as a currency, but it is really hard for me to imagine it is as a commodity. Commodities need some sort of underlying value (currency doesn't) and bitcoin doesn't.





mk  ·  4226 days ago  ·  link  ·  

    Commodities need some sort of underlying value (currency doesn't) and bitcoin doesn't.

I disagree. The price of gold doesn't reflect a practical value. People employ it as a commodity as it has a limited supply, and do so based on the sentiment in other markets, not on a perceived rise in the underlying value of gold. I see gold's underlying value being its limited supply and as it cannot be duplicated. BTC shares the same characteristics, but is easier to exchange.

geneusutwerk  ·  4226 days ago  ·  link  ·  

The recent bubble in gold is most likely due to speculation, but gold has an underlying value. As of now the majority of gold demand does not come from investment demands but from jewelery and technology. Here is a chart with the demand in tons

mk  ·  4226 days ago  ·  link  ·  

Thanks. So it looks like investment provides ~40-50% of the gold demand. I wonder if that non-investment demand is critical for it being used as an investment vehicle. It gives it a floor. Hm. Maybe Hallmark can invent a bitcoin holiday or something. :)

geneusutwerk  ·  4226 days ago  ·  link  ·  

This is also a very new trend for gold. If you look at this PDF you'll see that investment demand for gold has gone from like 10-20% to 40% in the last decade.

b_b  ·  4226 days ago  ·  link  ·  
humanodon  ·  4226 days ago  ·  link  ·  

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I wonder what the price of Goldschläger is these days . . .

b_b  ·  4226 days ago  ·  link  ·  

Oops. Fixed.

b_b  ·  4226 days ago  ·  link  ·  

Wow, those coins to commemorate Bin Laden's death must be doing gangbusters sales. Way to go Glenn Beck.