Poll

Is bitGold better than physical gold?

Yes
39 (62.9%)
No
23 (37.1%)

Total Members Voted: 59

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Offline vlight

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bitGold
« on: March 12, 2014, 06:37:51 PM »

Is it better than physical gold?

Offline CLains

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Re: bitGold
« Reply #1 on: March 12, 2014, 06:51:44 PM »
Yes.
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Offline JA

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Re: bitGold
« Reply #2 on: March 12, 2014, 06:52:53 PM »
could you send me gold in the next hour ?
can you store physical gold in your head ?
how much physical gold really exist ?
can you pay with gold over the internet ?
do you really own you physical gold or just a piece of paper with your ownership ?

have to eat dinner maybe i write more later  ;)

Offline biophil

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Re: bitGold
« Reply #3 on: March 12, 2014, 08:15:17 PM »
Yes.

There are also valid reasons one could say "no:"

Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
Can market forces ever decide that the gold bar in your basement isn't worth its weight in gold?
Can you use the BitGLD in your wallet to purchase something in the event of a large-scale power blackout?

Everything depends on what you're looking for in gold and/or BitGLD. BitGLD has many many advantages over physical gold in terms of liquidity, fungibility, portability, etc., but when it comes down to brass tacks, it is not backed by physical gold. It is backed by a promise from the BitShares X network to pay a the market value of BitGLD in XTS. If, for whatever reason (whether it be the network is maliciously attacked, or something severe happens to weaken speculators' confidence), the network stops honoring its promise, BitGLD will go the way of MtGox's Bitcoins.

If you want to take advantage of the long-term value stability (i.e., over decades) of physical gold, then BitGLD is absolutely worse than physical gold. If you want to use gold as a medium for exchange, then BitGLD is the thing for you.
« Last Edit: March 13, 2014, 01:13:22 PM by biophil »

Offline luckybit

Re: bitGold
« Reply #4 on: March 12, 2014, 08:23:23 PM »
Is it better than physical gold?

Yes. Can I send physical gold in an email?
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Offline vlight

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Re: bitGold
« Reply #5 on: March 12, 2014, 09:18:40 PM »
Yes.

There are also valid reasons one could say "no:"

Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
Can market forces ever decide that the gold bar in your basement isn't worth its weight in gold?
Can you use the BitGLD in your wallet to purchase something in the event of a large-scale power blackout?

Everything depends on what you're looking for in gold and/or BitGLD. BitGLD has many many advantages over physical gold in terms of liquidity, fungibility, portability, etc., but when it comes down to brass tacks, it is not backed by physical gold. It is backed by a promise from the BitShares X network to pay a the market value of BitGLD in XTS. If, for whatever reason (whether it be the network is maliciously attacked, or something severe happens to weaken speculators' confidence), the network stops honoring its promise, BitGLD will go the way of MtGox's Bitcoins.

If you want to take advantage of the long-term value stability (i.e., over decades) of physical gold, then BitGLD is absolutely worse than physical gold. If you want to use gold as a medium for exchange, then BitGLD is the thing for you.
What you stated is true, assuming that you own real physical gold, not a counterfeit.

Offline graffenwalder

Re: bitGold
« Reply #6 on: March 12, 2014, 09:46:20 PM »
Yes.

There are also valid reasons one could say "no:"

Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
Can market forces ever decide that the gold bar in your basement isn't worth its weight in gold?
Can you use the BitGLD in your wallet to purchase something in the event of a large-scale power blackout?

Everything depends on what you're looking for in gold and/or BitGLD. BitGLD has many many advantages over physical gold in terms of liquidity, fungibility, portability, etc., but when it comes down to brass tacks, it is not backed by physical gold. It is backed by a promise from the BitShares X network to pay a the market value of BitGLD in XTS. If, for whatever reason (whether it be the network is maliciously attacked, or something severe happens to weaken speculators' confidence), the network stops honoring its promise, BitGLD will go the way of MtGox's Bitcoins.

If you want to take advantage of the long-term value stability (i.e., over decades) of physical gold, then BitGLD is absolutely worse than physical gold. If you want to use gold as a medium for exchange, then BitGLD is the thing for you.

 +5%, which doesn't mean I'm not excited about bit gold.

This might be an obvious question but what is Bitgold meant to be valued at, Troy ounce?

Offline Kenof

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Re: bitGold
« Reply #7 on: March 12, 2014, 10:30:14 PM »
I think the answer to this question mostly depends on the assumption that you have access to electricity and Internet. Without those two physical gold rules and will rule forever but in digital era BitGold is the king.

Best would be to have half in BitGold and half in physical gold  8)
Making life easier.

Offline yellowecho

Re: bitGold
« Reply #8 on: March 12, 2014, 10:31:13 PM »
They're different asset classes so one is not 'better' than the other, rather they can be under or overvalued to each other.  And since bitGold does not have a price yet it's difficult to say which is which at the moment.  With that said, I'm not selling nor would I sell my physical gold for bitGold but I would probably sell my bitGold for physical.
696c6f766562726f776e696573

Offline Markus

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Re: bitGold
« Reply #9 on: March 12, 2014, 10:47:20 PM »
Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
This will not happen with BitGold. There are no margin calls on long positions.

Offline toast

Re: bitGold
« Reply #10 on: March 13, 2014, 01:11:46 AM »
Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
This will not happen with BitGold. There are no margin calls on long positions.

And furthermore the network NEVER replaces your assets without your consent. It only takes stuff you *willingly* put into collateral in order to go short on another asset.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline toast

Re: bitGold
« Reply #11 on: March 13, 2014, 01:12:54 AM »
That said, gold is my "anti-catastrophe" value store, I hold it in the event something so bad that internet connectivity is at the back of my mind happens

bitgold < gold
bitusd > usd
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline biophil

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Re: bitGold
« Reply #12 on: March 13, 2014, 01:12:36 PM »
Can the gold bar in your basement be unexpectedly replaced (without your consent) with an equivalent number of XTS?
This will not happen with BitGold. There are no margin calls on long positions.

And furthermore the network NEVER replaces your assets without your consent. It only takes stuff you *willingly* put into collateral in order to go short on another asset.

Right. Of course. I will go hang my head in shame for my previous misunderstanding of margin calls...

Seriously, I think the explanation of margin calls I put in the FAQ was wrong. Gonna go do a little revision.

Offline betax

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Re: bitGold
« Reply #13 on: March 13, 2014, 01:13:34 PM »

This might be an obvious question but what is Bitgold meant to be valued at, Troy ounce?

Yes, in all commodities we need to know what are the measures, or I guess they will be implied by the price?
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Offline G1ng3rBr34dM4n

Re: bitGold
« Reply #14 on: March 13, 2014, 10:40:32 PM »
That said, gold is my "anti-catastrophe" value store, I hold it in the event something so bad that internet connectivity is at the back of my mind happens

bitgold < gold
bitusd > usd

 +5%

 

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