I am always suspicious of people who use the words "will", "inevitable", "completely replace", etc. when talking about the future.
You have the right to have an *opinion* about the future, just don't state them as *facts*.
Bitcoin, Gold, and Silver can and should co-exist together, as all three of them are alternatives to fiat toilet paper. Again, it is only my *opinion* that fiat is toilet paper in the wrong run - I could be wrong.
Basically, what I'm saying is - be humble in your "knowledge" about the future. None of us here really know for sure.
My big issue is gold and silver still hold physical value aside from monetary value. When someone says a digital anything will replace a physical one where the physical one has extremely unique and rare properties, not just scarcity, I check out. Gold is 100% needed in electronics and high end computers, space travel, etc. That alone is going to always hold a value. Any monetary system can collapse. Gold will always have value.
I agree. However, I want to note that gold's industrial usage is minimal compared to its investment purpose, primarily serving as a store of value in vaults and safes. Its market capitalization relies heavily on the belief in its ability to retain value against inflationary fiat currencies. If trust in gold as an inflation hedge diminishes, its value could plummet closer to its industrial supply and demand pricing. Nevertheless, gold maintains inherent industrial value due to its elemental properties, ensuring it never reaches zero value.
The future may be to capture or explore an asteroid and mine it. You never know. (And it doesn't have to be humans but robots. At this rate, it may be Musk with Tesla robots and SpaceX.)
That last one in the news was a worth of $10 quintillion.
So truthfully, nothing is safe.
it's not actually worth that much though because there isn't that much money in the world... plus dumping that much gold on the market would crash the price to nothing
Exactly, bitcoin can be replaced by any other cryptocurrency in the future for many reasons. Gold as a metal held its value for centuries and it will continue to .
You know nothing about silver apparently. If anything with all the increasing use it will become less available.
I am pro BTC but this post is just stupid.
A quick google search verifies my stance. There’s 40% as much silver ready to be mined as there is already mined. And we haven’t discovered most of the deposits. That’s a lot of potential debasement. The flow is too based on demand for silver, it’s not a viable savings vessel.
It’s not, we just don’t have the tech to extract it economically. We’re gonna run out due to human technological limitations, not because there’s no more silver.
I’m willing to bet we overcome this obstacle with a technological advancement rather than saying “and that’s it for silver!”
Have a little respect for silver.
Without silver, we couldn't have the processing power needed to mine bitcoin and many of the renewable energy solutions that miners use for power are also heavily reliant on silver.
You just proved utility over scarcity. Silver being 28 and gold 2200 means fiat is devaluing and both those numbers are absolutely cooked and manipulated to begin with. Both should be higher.
>So silver returning to its utility value is disrespect?
>
>Anthropromorphizing elements is weird.
Not at all.
People thinking silver is going to moon is Dunning-Kruger AF, though.
Things don't return to their utility value. They either have it or they don't.
If you mean "losing its speculative value" then that's a thing. But silver isn't losing its speculative value, price target is well over $30/oz rn.
There’s industrial use and there’s use as a monetary good. It can keep one and lose the other. The longer you have respect for its use as a monetary good the more value you’re going to lose
If you value metals at what their utility is instead of their scarcity, they're mostly worthless. There's enough silver already mined to be used for thousands of years
[it is on the endangered elements list because of its rate of consumption and its increased difficulty to mine](https://www.acs.org/greenchemistry/research-innovation/endangered-elements.html)
It won’t take 100% of it away. There will always be people ready with physical money on hand in the case if the internet is taken down by AI, or by a foreign adversary using EMP, a computer virus, nuclear war, etc.
In those catastrophic circumstances you want food, water, medicine, recreational drugs, firearms, and ammunition. No one will care about your shiny metals.
I see a world where gold doubles, bitcoin rises 10x and silver goes absolutely nowhere.
This is already visible when you look at the fact both gold and bitcoin have made new all time highs this year yet silver is still 45% below its 2011 high.
Silver is a great industrial metal but it is dead in terms of being a monetary asset.
>take 100% of its safe haven sound money value.
According to Andrew Carnegie in [The A B C of Money](https://www.jstor.org/stable/25102198), silver never really had any.
It only had value because Silver producers were trying to get the Government to say it had a value (by fiat) pegged to Gold. So people would be overexposed to Silver and then get rug pulled.
I think its just because of the way pareto distributions work out, Silver is probably just that much closer to Copper than it is to Gold in rarity in actuality.
The Opium War was caused by the fact that 19th century China preferred to accumulate silver and run a trade surplus until forced by foreign powers to allow trade ports and allow the mass import of opium. Silver has a long history as a competing monetary base.
In the long run it hurt them that they were accumulating silver and not gold. They saved in the wrong asset and they lost value to those who accumulated gold. Which is exactly what will happen to anyone who accumulates silver or gold instead of bitcoin
This is true for copper and lead, too.
Respect? Sure. Portfolio allocation? No way.
The future has gold and silver priced at their commodity prices, like uranium and zinc.
Probably a little room for jewelry in there for gold, but less and less as the price drops and displaying it becomes less of a signal - or worse, a signal of being poor.
Replace mining with generating (by a processor & algorithm).
The term mining was probably used to sound more fancy/old-school rather than hey, we're just endlessly cracking algorisms you wanna put some money on that ?
It's built into the way Bitcoin was designed to be distributed. The "mining" process is designed to only yield Bitcoin when you solve a cypher (coded formula) and arrive at a certain answer, specifically an answer that is very rare. Think like a mining tunnel, you don't know where a vein of gold is. You just have to keep cutting away until you find that sweet spot.
So a cypher text is created, and your computer has to run an algorithm to figure out the "answer" to it. Let's say you could *guess* at it, you'd be trying to find a number between 0000000000000001 and 9999999999999999. So guessing is not possible. Basically "solving" the problem means taking the cypher and applying several mathematical formulas to arrive at the answer!
The correct answer is usually a low number, beginning with about 6-7 zeros. The difficulty of the cypher text is updated frequently, by the program that generates the cypher text, to be more or less difficult to arrive at that rare number. Think like an escape room vault that you have 10 minutes to break out of. There are 8 security measures you have to get past to get out of the vault. If it's just you, the Escape Room makes it not too difficult to get through each one and escape, so that any one person could do it in about 10 minutes. If there are 100 people, the odds that people could do it much faster increase, so the Escape Room makes it more difficult, because the first person out gets the reward! This is by design, so that rewards are given out approximately every 10 minutes.
Currently, there are a lot of "miners", so the process that generates the cypher creates a problem that requires an answer that is more rare (longer codes on the vault doors). Having more processing power means that you can run the algorithm more times per second, and therefore you have more opportunity to solve the problem before others do. This, in turn makes it a faster process, so difficult increases. When there are fewer "miners", difficulty decreases and your odds of finding the block reward (the vein of gold, or the correct codes to the Escape Room) increase.
I hope that's helpful! I'm not a Bitcoin engineer, so my analogies may not be spot on, but this is the easiest way I can think to describe it while still understanding what is happening. If you want to dive further you'll need an understanding of SHA256, and I cannot help you there because that's above my head.
SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that belongs to the SHA-2 (Secure Hash Algorithm 2) family of hash functions. It is widely used in various digital security applications, including digital signatures, message integrity checks, and password security.
SHA-256 generates a fixed-size output (256 bits or 64 characters) from an input message of any size. This output, called a hash value or digest, is unique to the input message and serves as a digital fingerprint that can verify the integrity of data. Even a small change in the input message will result in a significantly different hash value.
SHA-256 is considered to be secure and resistant to collision attacks, where different inputs produce the same hash value. It is commonly used in blockchain technology, such as in the mining process for cryptocurrencies like Bitcoin, where SHA-256 is used to hash transactions and create new blocks in the blockchain.
In summary, SHA-256 is a powerful cryptographic hash function that plays a vital role in ensuring the security and integrity of digital data and communications.
See I think this is one of the issues in helping others understand Bitcoin. I've only ever seen detailed explanations like this, or extremely simplified explanations like "lock and key" kind of stuff.
Can you explain like I'm 15? I mean, I understand the basics of cryptography... ABCD becomes CADB. I understand that binary is just ON/OFF for computers... but I don't know what "hash" means. So I really just get lost after "cryptographic hash function".
I really don't intend to sound insulting at all, I'm just mostly ignorant of what SHA256 is because I don't have a reference point. I don't know what SHA is, or hash, I don't know the name for things that SHA is *not* (like water is not tea is not coffee, but they are all liquid drinks).
If that doesn't make sense, I don't really have a starting point for what I don't understand.
I see where you are coming from. To have a good understanding of any subjects, we need to understand the basics or the fundamentals. Then we used that information as reference to understand more complex ideas.
In the context of cryptocurrencies & blockchain technology, a "hash" refers to a fixed-size output generated by a cryptographic hash function. A hash function is a mathematical algorithm that takes an input (data of any size) & produces a fixed-size output, known as a hash value or digest.
Hashing plays a crucial role in the security & integrity of blockchain networks. EG, in the context of Bitcoin mining, miners use hash functions (such as SHA-256) to hash transaction data & create a new block in the blockchain. This process involves solving complex mathematical puzzles to find a hash value that meets certain criteria, known as the "proof of work."
Hash functions have several key properties that make them important in cryptography & blockchain technology, including:
1. Deterministic: Given the same input, a hash function will always produce the same output.
2. Quick to compute: Hash functions can generate hash values quickly, making them suitable for use in blockchain networks.
3. Collision-resistant: It is computationally infeasible to find two different inputs that produce the same hash value.
4. Irreversible: It should be nearly impossible to reverse-engineer the original input data from the hash value.
In summary, hashes play a critical role in ensuring data integrity, security, and consensus in cryptocurrency systems by providing a unique and tamper-proof representation of transaction data and other information on the blockchain.
Blockchain is a hype up word which is just based on hash. As you can see, this has limitations because it is not reversible or scalable so it will struggle to transact as fast as VISA. When it's not reversible, you can't do a refund.
I’m pretty sure you’re just being a troll but yes, effectively it is stuck in the internet. It is programmatically stuck in the future and you have to use energy to get it out.
Sure it does. All the gold in the world already exists. It just requires energy to get it out of the ground. All the bitcoins already exist. They are just programmatically stuck in the future and it requires energy to get them out.
Look out everyone, this guy googled a graph.
This post doesnt really have any substance, its just a "how high will btc go" post wrapped in a silver bow.
Exactly this. Digital is dangerous in a lot of ways, as foreign adversaries do have the ability to knock out digital anything. Don’t get me wrong, I’m a strong BTC holder and advocate but that doesn’t mean I still don’t pile on the gold and silver. It’s been currency for 5000 years. Digital……20 some years. Long way to go for that to take over something physical. Opinion here
Silver has been "going nowhere" since the 1980s. The occasional doubling in value before dropping is not a great investment. It just scratches that part of the brain for a heavy, valuable tangible asset that can be accumulated.
Lottery ticket mentality. One day it "might" go up, that guarantees there will always be an investment market for it (besides the obvious industrial applications). Meanwhile the opportunity cost from not investing in other assets is huge.
Been investing in physical silver for 20 years. Literally would have been better off buying rifle primers, which have gone up 4x-6x in the last 4 years.
With fiat debasement in general, I think it’s important to know that trashing on another commodity isn’t going to do anything. Just know that when fiat gets printed, everything will rise in value. However, the scarcest assets will be the ones to rise the most.
Over the pandemic, if you look via percentage rises, Bitcoin is basically the clear winner here, but scarce commodities and assets in general are well off too. There’s no case to be made that Bitcoin is the scarcest asset and will rise the most.
Silver will always be valuable. It’s far to important in an industrial sense. Sure, bitcoins value is surpassing it. But Bitcoin is only valuable because we as a community value it. Bitcoin itself is just fucking numbers. Silver is an actual thing that’s used to make other things.
If chaos ensued and there were a kind of apocalypse, Bitcoin would be worthless. I know people here will disagree with me on that, but it’s true. Nobody will give a fuck about your ledger of Bitcoin if people are trading bullets for beans. But silver and gold will always always always be valuable.
Bitcoin is gold for the masses. It’s challenging and expensive to acquire gold for most people in the world. Let alone store and transport and exchange. Bitcoin solves this.
silvers value is mostly derived from its industrial use, its not a common investment instrument among anyone but the poor who cant afford gold. It barely has any 'safe haven sound money value' as it stands because its not needed for that. its not really worth enough to be a good store of value, $1M worth of silver weighs more than a metric ton. the entire market cap is only 1.5 trillion, crypto as a whole is already larger than the silver market.
Bitcoin supplants silver? Probably not. After fiat falls, many producers will favor the look and feel of silver coins over the ethereal silence of computer bits. We are still creatures of sight, sound and sense.
Ores will always have value. The conductive properties of gold alone enables us to make the chips required to mine bitcoin in the first place.
Bitcoin is great because of the limited supply and POSSIBLE utility in the future when it stabilizes.
Gold and ores is hard to extract, but exists in almost unlimited quantities when you look outside of earth, It could not possibly be a store of value if you look far enough into the future.
That being said, I welcome the days when gold is traded much like flour and rice is today, and Bitcoin becomes the new "gold standard".
I like all 3, but after seeing how utterly helpless people were a few weeks ago when the cell towers all went down, in the event we have a scenario where the population experiences an internet outage for any substantial period of time, hard physical assets would reclaim their standing in what they are here to do. Not just metals, but food, medicine, and even basic skills like map reading. It may be years from now, but society is so overly digitalized and living in a purely metaphysical realm, that such an event would be eye opening to the merit of possessing something that’s tangible and real in the physical world.
Bitcoin experts on gold, gold "bugs" whoever that is, and gold "bugs" opinions on silver. It's incredible the quality of posts it takes to explain investing in Bitcoin vs precious metals. I'm so enlightened. Thanks op.
By definition monetary value is the value of something measured in currency.
So silver is going to be completely free and worthless? People will just throw it around as if it's dirt?
No, they won't. Silver will always retain some of its monetary value. It's a useful metal and is a commodity. It might become less of a commodity, but not worthless even when isolated to that front. It'll always have use as a metal so not possible to be worth $0
Hyperbole> facts= great bs reddit post
Bitcoin as a gold and silver alternative? Is bitcoin an excellent electrical conductor that is naturally resistant to corrosion as well? What are bitcoins desirable physical properties that make it suitable to use in place of these other precious metals? /s
I understand bitcoin as an investment on its own merit, but comparing it to precious metals makes no sense.
Goldbugs are, in the main, not big on Silverr - go ask on their subs..
I have about 10% of my wealth in gold (enough to live on for 2 years) and only a very tiny amount of silver.
Good and silver have been around as a form of money for millennia while Bitcoin had been around for less than 20 years. I’ll hold with mostly gold and silver at this time based on that track record.
Bitcoin has the uses of gold, and more. A certain amount of wealth from all secotrs will be securitized into crypo. Primarily becuase crypto is a better store of that wealth, more liquid and transportable.
gold and silver are extremely manipulated, and they are de facto inflated in supply by the giant trust between private banks and governments to suppress its price, back in the pre Nixon days by dishoarding gold at strategic moments, and since through the Future Markets [https://www.gata.org/node/20925](https://www.gata.org/node/20925)
>**Why have Western central banks been rigging the gold market?**
>It's because gold is a **powerful competitive international currency** that, **if allowed to function in a free market, will determine the value of other currencies, the level of interest rates, and the value of government bonds.** In a free market gold's performance is usually the opposite of the performance of government currencies and bonds. A rising gold price signifies the weakening of government currencies, at least the government currencies in countries that don't produce a lot of gold.
>**So central banks fight gold to defend their currencies and bonds against competition.**
>The problem is that the tactics of Western central banks in their war against gold affect far more than gold. They affect markets generally and eventually *destroy* markets generally and damage the economies of all commodity-producing countries. This destruction of markets now has a name, a name used even by former members of the U.S. Federal Reserve Board. That name is "financial repression."
\[...\]
They used to do it conventionally and in the open by **dishoarding -- selling -- some of their gold reserves at strategic moments**, Then they began dishoarding from their gold reserves more often, even every day, as the United States, United Kingdom, and seven of their Western European allies did during the 1960s through a public operation called the London Gold Pool:
The London Gold Pool held the gold price at $35 per ounce, the official price of gold set by the **Bretton Woods conference in 1944, until the pool collapsed in March 1968** *\[the precursor and catalyst to the Nixon Shock of 1971\]* under the rising demand that had drained the U.S. gold reserve from 25,000 tonnes down closer to the 8,133 tonnes officially reported today:
After the collapse of the gold pool the United States and its allies regrouped to decide how to **rig the gold market** ***surreptitiously,*** **to do it behind the scenes** -- not just with dishoarding but also by what is called the **leasing of gold; by the purchase and sale of gold derivatives, including futures and options contracts**; and, more recently, by what is called **high-frequency trading undertaken through investment banks that gladly serve as government agents in the gold market,** providing camouflage for governments, since the investment banks can front-run government trades.
\[....\]
the British economist Peter Warburton discerned that **central banks were using investment banks to issue financial derivatives throughout the commodity futures markets to siphon away money that was seeking a hedge against inflation by investing in hard assets**. That is, derivatives like futures contracts can divert money away from the hoarding of real goods as stores of value. This diversion of investment is in the interest of governments, since **commodity hoarding would drive up consumer price indexes and make inflation even more obvious and distressing to the markets and the public**.
>Most of these derivatives encouraged by government in the West are essentially **naked short positions on the underlying commodity,** promises to sell volumes of a commodity that are not readily available and cannot be obtained without sending prices way up.
I love bitcoin, but you don’t understand precious resources if you think silver will lose its value. Silver is the only material that can clean water by depxidizing it I believe. Why all medieval forks and knives “silverware” is made of silver. Cups of silver. It has and will be around for eternity
One thing people don't realize is that there is a limited amount of gold out there. When you're buying gold on the stock market, the ones you're buying are printed. Npbpdy is going to stock up on gold bricks regardless. The new generation is all about digit assets. Bitcoin is not printed. There will only be 21 million. There's a reason why antiques are worth nothing because our generation could care less.
I am always suspicious of people who use the words "will", "inevitable", "completely replace", etc. when talking about the future. You have the right to have an *opinion* about the future, just don't state them as *facts*. Bitcoin, Gold, and Silver can and should co-exist together, as all three of them are alternatives to fiat toilet paper. Again, it is only my *opinion* that fiat is toilet paper in the wrong run - I could be wrong. Basically, what I'm saying is - be humble in your "knowledge" about the future. None of us here really know for sure.
My big issue is gold and silver still hold physical value aside from monetary value. When someone says a digital anything will replace a physical one where the physical one has extremely unique and rare properties, not just scarcity, I check out. Gold is 100% needed in electronics and high end computers, space travel, etc. That alone is going to always hold a value. Any monetary system can collapse. Gold will always have value.
I agree. However, I want to note that gold's industrial usage is minimal compared to its investment purpose, primarily serving as a store of value in vaults and safes. Its market capitalization relies heavily on the belief in its ability to retain value against inflationary fiat currencies. If trust in gold as an inflation hedge diminishes, its value could plummet closer to its industrial supply and demand pricing. Nevertheless, gold maintains inherent industrial value due to its elemental properties, ensuring it never reaches zero value.
The future may be to capture or explore an asteroid and mine it. You never know. (And it doesn't have to be humans but robots. At this rate, it may be Musk with Tesla robots and SpaceX.) That last one in the news was a worth of $10 quintillion. So truthfully, nothing is safe.
it's not actually worth that much though because there isn't that much money in the world... plus dumping that much gold on the market would crash the price to nothing
Exactly. Anything is possible and vulnerable.... Even gold (when the tech is available)
Gold and silver are required for Bitcoin to function. To put it another way, in some small way Bitcoin drives demand for gold.
Exactly, bitcoin can be replaced by any other cryptocurrency in the future for many reasons. Gold as a metal held its value for centuries and it will continue to .
Silver sucks tho, there’s so much of it and we can mine it so fast. That shit is basically natural fiat
You know nothing about silver apparently. If anything with all the increasing use it will become less available. I am pro BTC but this post is just stupid.
A quick google search verifies my stance. There’s 40% as much silver ready to be mined as there is already mined. And we haven’t discovered most of the deposits. That’s a lot of potential debasement. The flow is too based on demand for silver, it’s not a viable savings vessel.
[it’s an endangered element](https://www.acs.org/greenchemistry/research-innovation/endangered-elements.html)
It’s not, we just don’t have the tech to extract it economically. We’re gonna run out due to human technological limitations, not because there’s no more silver. I’m willing to bet we overcome this obstacle with a technological advancement rather than saying “and that’s it for silver!”
another positive use for silver column.
I honestly think bitcoin has been stealing all of silvers monetary asset value since 2011 we just havent realised it.
Have a little respect for silver. Without silver, we couldn't have the processing power needed to mine bitcoin and many of the renewable energy solutions that miners use for power are also heavily reliant on silver.
You just proved utility over scarcity. Silver being 28 and gold 2200 means fiat is devaluing and both those numbers are absolutely cooked and manipulated to begin with. Both should be higher.
So silver returning to its utility value is disrespect? Anthropromorphizing elements is weird.
>So silver returning to its utility value is disrespect? > >Anthropromorphizing elements is weird. Not at all. People thinking silver is going to moon is Dunning-Kruger AF, though.
People thinking DK is synonymous with stupid is..... well......... well it's something.
Things don't return to their utility value. They either have it or they don't. If you mean "losing its speculative value" then that's a thing. But silver isn't losing its speculative value, price target is well over $30/oz rn.
The word is monetary premium.
There’s industrial use and there’s use as a monetary good. It can keep one and lose the other. The longer you have respect for its use as a monetary good the more value you’re going to lose
I'm now bullish on silver.
If you value metals at what their utility is instead of their scarcity, they're mostly worthless. There's enough silver already mined to be used for thousands of years
[it is on the endangered elements list because of its rate of consumption and its increased difficulty to mine](https://www.acs.org/greenchemistry/research-innovation/endangered-elements.html)
Much of the mined silver is in land fills across the planet.
Silver is a fantastic industrial metal however bitcoin is going to take 100% of its safe haven sound money value.
It won’t take 100% of it away. There will always be people ready with physical money on hand in the case if the internet is taken down by AI, or by a foreign adversary using EMP, a computer virus, nuclear war, etc.
In those catastrophic circumstances you want food, water, medicine, recreational drugs, firearms, and ammunition. No one will care about your shiny metals.
Buying silver is fun. It’s shiny and pretty and cheaper than gold and it looks cool in a drawer :)
I like metals and sats. I think BTC will ultimately help silver either way.
I see a world where gold doubles, bitcoin rises 10x and silver goes absolutely nowhere. This is already visible when you look at the fact both gold and bitcoin have made new all time highs this year yet silver is still 45% below its 2011 high. Silver is a great industrial metal but it is dead in terms of being a monetary asset.
Good thing no one gives a damn about what you see.
>take 100% of its safe haven sound money value. According to Andrew Carnegie in [The A B C of Money](https://www.jstor.org/stable/25102198), silver never really had any. It only had value because Silver producers were trying to get the Government to say it had a value (by fiat) pegged to Gold. So people would be overexposed to Silver and then get rug pulled. I think its just because of the way pareto distributions work out, Silver is probably just that much closer to Copper than it is to Gold in rarity in actuality.
The Opium War was caused by the fact that 19th century China preferred to accumulate silver and run a trade surplus until forced by foreign powers to allow trade ports and allow the mass import of opium. Silver has a long history as a competing monetary base.
In the long run it hurt them that they were accumulating silver and not gold. They saved in the wrong asset and they lost value to those who accumulated gold. Which is exactly what will happen to anyone who accumulates silver or gold instead of bitcoin
The silver producers in Egyptian Pharos era? And Roman era as well?
This is true for copper and lead, too. Respect? Sure. Portfolio allocation? No way. The future has gold and silver priced at their commodity prices, like uranium and zinc. Probably a little room for jewelry in there for gold, but less and less as the price drops and displaying it becomes less of a signal - or worse, a signal of being poor.
What does it mean to mine btc? Is it dug deep inside earth or something?
Replace mining with generating (by a processor & algorithm). The term mining was probably used to sound more fancy/old-school rather than hey, we're just endlessly cracking algorisms you wanna put some money on that ?
Why do we need heavy processors to generate it? Is it hidden on the internet?
It's built into the way Bitcoin was designed to be distributed. The "mining" process is designed to only yield Bitcoin when you solve a cypher (coded formula) and arrive at a certain answer, specifically an answer that is very rare. Think like a mining tunnel, you don't know where a vein of gold is. You just have to keep cutting away until you find that sweet spot. So a cypher text is created, and your computer has to run an algorithm to figure out the "answer" to it. Let's say you could *guess* at it, you'd be trying to find a number between 0000000000000001 and 9999999999999999. So guessing is not possible. Basically "solving" the problem means taking the cypher and applying several mathematical formulas to arrive at the answer! The correct answer is usually a low number, beginning with about 6-7 zeros. The difficulty of the cypher text is updated frequently, by the program that generates the cypher text, to be more or less difficult to arrive at that rare number. Think like an escape room vault that you have 10 minutes to break out of. There are 8 security measures you have to get past to get out of the vault. If it's just you, the Escape Room makes it not too difficult to get through each one and escape, so that any one person could do it in about 10 minutes. If there are 100 people, the odds that people could do it much faster increase, so the Escape Room makes it more difficult, because the first person out gets the reward! This is by design, so that rewards are given out approximately every 10 minutes. Currently, there are a lot of "miners", so the process that generates the cypher creates a problem that requires an answer that is more rare (longer codes on the vault doors). Having more processing power means that you can run the algorithm more times per second, and therefore you have more opportunity to solve the problem before others do. This, in turn makes it a faster process, so difficult increases. When there are fewer "miners", difficulty decreases and your odds of finding the block reward (the vein of gold, or the correct codes to the Escape Room) increase. I hope that's helpful! I'm not a Bitcoin engineer, so my analogies may not be spot on, but this is the easiest way I can think to describe it while still understanding what is happening. If you want to dive further you'll need an understanding of SHA256, and I cannot help you there because that's above my head.
SHA-256 (Secure Hash Algorithm 256-bit) is a cryptographic hash function that belongs to the SHA-2 (Secure Hash Algorithm 2) family of hash functions. It is widely used in various digital security applications, including digital signatures, message integrity checks, and password security. SHA-256 generates a fixed-size output (256 bits or 64 characters) from an input message of any size. This output, called a hash value or digest, is unique to the input message and serves as a digital fingerprint that can verify the integrity of data. Even a small change in the input message will result in a significantly different hash value. SHA-256 is considered to be secure and resistant to collision attacks, where different inputs produce the same hash value. It is commonly used in blockchain technology, such as in the mining process for cryptocurrencies like Bitcoin, where SHA-256 is used to hash transactions and create new blocks in the blockchain. In summary, SHA-256 is a powerful cryptographic hash function that plays a vital role in ensuring the security and integrity of digital data and communications.
See I think this is one of the issues in helping others understand Bitcoin. I've only ever seen detailed explanations like this, or extremely simplified explanations like "lock and key" kind of stuff. Can you explain like I'm 15? I mean, I understand the basics of cryptography... ABCD becomes CADB. I understand that binary is just ON/OFF for computers... but I don't know what "hash" means. So I really just get lost after "cryptographic hash function". I really don't intend to sound insulting at all, I'm just mostly ignorant of what SHA256 is because I don't have a reference point. I don't know what SHA is, or hash, I don't know the name for things that SHA is *not* (like water is not tea is not coffee, but they are all liquid drinks). If that doesn't make sense, I don't really have a starting point for what I don't understand.
I see where you are coming from. To have a good understanding of any subjects, we need to understand the basics or the fundamentals. Then we used that information as reference to understand more complex ideas. In the context of cryptocurrencies & blockchain technology, a "hash" refers to a fixed-size output generated by a cryptographic hash function. A hash function is a mathematical algorithm that takes an input (data of any size) & produces a fixed-size output, known as a hash value or digest. Hashing plays a crucial role in the security & integrity of blockchain networks. EG, in the context of Bitcoin mining, miners use hash functions (such as SHA-256) to hash transaction data & create a new block in the blockchain. This process involves solving complex mathematical puzzles to find a hash value that meets certain criteria, known as the "proof of work." Hash functions have several key properties that make them important in cryptography & blockchain technology, including: 1. Deterministic: Given the same input, a hash function will always produce the same output. 2. Quick to compute: Hash functions can generate hash values quickly, making them suitable for use in blockchain networks. 3. Collision-resistant: It is computationally infeasible to find two different inputs that produce the same hash value. 4. Irreversible: It should be nearly impossible to reverse-engineer the original input data from the hash value. In summary, hashes play a critical role in ensuring data integrity, security, and consensus in cryptocurrency systems by providing a unique and tamper-proof representation of transaction data and other information on the blockchain. Blockchain is a hype up word which is just based on hash. As you can see, this has limitations because it is not reversible or scalable so it will struggle to transact as fast as VISA. When it's not reversible, you can't do a refund.
Yes and there is an award for finding it.
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Bring a flashlight.
It’s magic internet money!
I’m pretty sure you’re just being a troll but yes, effectively it is stuck in the internet. It is programmatically stuck in the future and you have to use energy to get it out.
None of this makes any sense
Sure it does. All the gold in the world already exists. It just requires energy to get it out of the ground. All the bitcoins already exist. They are just programmatically stuck in the future and it requires energy to get them out.
Mathematically impossible for silver to lose 100% of its value.
He said it's not gonna move. And it hasn't.. I bought a 100oz bar of silver for 2300 in 2013.... what's it worth today? 2700. Lol
Precious metals aren’t investments there insurance policies. It’s not meant to 2X in value constantly.
Look out everyone, this guy googled a graph. This post doesnt really have any substance, its just a "how high will btc go" post wrapped in a silver bow.
Wrapped in a silver bow? I would say "with a silver lining" lol
We will never replace physical with digital. BTC is a compliment to gold and silver which have completely different uses than BTC.
Exactly this. Digital is dangerous in a lot of ways, as foreign adversaries do have the ability to knock out digital anything. Don’t get me wrong, I’m a strong BTC holder and advocate but that doesn’t mean I still don’t pile on the gold and silver. It’s been currency for 5000 years. Digital……20 some years. Long way to go for that to take over something physical. Opinion here
Silver has been "going nowhere" since the 1980s. The occasional doubling in value before dropping is not a great investment. It just scratches that part of the brain for a heavy, valuable tangible asset that can be accumulated. Lottery ticket mentality. One day it "might" go up, that guarantees there will always be an investment market for it (besides the obvious industrial applications). Meanwhile the opportunity cost from not investing in other assets is huge. Been investing in physical silver for 20 years. Literally would have been better off buying rifle primers, which have gone up 4x-6x in the last 4 years.
Hindsight is 20/20
Explain why it's up 10% this month alone?
Bro... Its 45% below its 2011 high...
By that logic you should definitely not buy Bitcoin then. Way more volatile
Ok houdini
I like gold, silver and bitcoin although I admit I only hodl bitcoin.
You should short silver then
Bullshit. Silver has a non fiat value as metal. It is very useful for a ton of applications.
With fiat debasement in general, I think it’s important to know that trashing on another commodity isn’t going to do anything. Just know that when fiat gets printed, everything will rise in value. However, the scarcest assets will be the ones to rise the most. Over the pandemic, if you look via percentage rises, Bitcoin is basically the clear winner here, but scarce commodities and assets in general are well off too. There’s no case to be made that Bitcoin is the scarcest asset and will rise the most.
Show me paper napkins math. Only thing I trust
No because I can’t wear bitcoin on my body. I’ll keep buying silver jewelry ;)
Silver will always be valuable. It’s far to important in an industrial sense. Sure, bitcoins value is surpassing it. But Bitcoin is only valuable because we as a community value it. Bitcoin itself is just fucking numbers. Silver is an actual thing that’s used to make other things. If chaos ensued and there were a kind of apocalypse, Bitcoin would be worthless. I know people here will disagree with me on that, but it’s true. Nobody will give a fuck about your ledger of Bitcoin if people are trading bullets for beans. But silver and gold will always always always be valuable.
I think gold bugs should see silver as a precursor to what happened once btc eats silver it’s coming for gold next…
Bitcoin is gold for the masses. It’s challenging and expensive to acquire gold for most people in the world. Let alone store and transport and exchange. Bitcoin solves this.
Silver will always have monetary value. Its absolutely stupid to claim something will basically make a metal with actual uses obsolete.
This post is dumb.
Posts like these make me want to mute this sub. Fucking brainless.
I can hold silver in my hand. Bitcoin is some characters in a file.
And how much weight can you hold in your hands?..Can you conceal it when you move?
silvers value is mostly derived from its industrial use, its not a common investment instrument among anyone but the poor who cant afford gold. It barely has any 'safe haven sound money value' as it stands because its not needed for that. its not really worth enough to be a good store of value, $1M worth of silver weighs more than a metric ton. the entire market cap is only 1.5 trillion, crypto as a whole is already larger than the silver market.
Bitcoin supplants silver? Probably not. After fiat falls, many producers will favor the look and feel of silver coins over the ethereal silence of computer bits. We are still creatures of sight, sound and sense.
Ores will always have value. The conductive properties of gold alone enables us to make the chips required to mine bitcoin in the first place. Bitcoin is great because of the limited supply and POSSIBLE utility in the future when it stabilizes. Gold and ores is hard to extract, but exists in almost unlimited quantities when you look outside of earth, It could not possibly be a store of value if you look far enough into the future. That being said, I welcome the days when gold is traded much like flour and rice is today, and Bitcoin becomes the new "gold standard".
Duh.
Yea that’s nice and all, but I’m more exited about bitcoin sucking money out of the *bond* market. It’s got a *little* bigger market cap than silver.
good game
Eventually, it will absorb all monetary value.
https://i.postimg.cc/7w9YMGxj/image.png
I like all 3, but after seeing how utterly helpless people were a few weeks ago when the cell towers all went down, in the event we have a scenario where the population experiences an internet outage for any substantial period of time, hard physical assets would reclaim their standing in what they are here to do. Not just metals, but food, medicine, and even basic skills like map reading. It may be years from now, but society is so overly digitalized and living in a purely metaphysical realm, that such an event would be eye opening to the merit of possessing something that’s tangible and real in the physical world.
Bitcoin experts on gold, gold "bugs" whoever that is, and gold "bugs" opinions on silver. It's incredible the quality of posts it takes to explain investing in Bitcoin vs precious metals. I'm so enlightened. Thanks op.
… I feel the urge to buy some silver maples all of a sudden
By definition monetary value is the value of something measured in currency. So silver is going to be completely free and worthless? People will just throw it around as if it's dirt? No, they won't. Silver will always retain some of its monetary value. It's a useful metal and is a commodity. It might become less of a commodity, but not worthless even when isolated to that front. It'll always have use as a metal so not possible to be worth $0 Hyperbole> facts= great bs reddit post
Bitcoin as a gold and silver alternative? Is bitcoin an excellent electrical conductor that is naturally resistant to corrosion as well? What are bitcoins desirable physical properties that make it suitable to use in place of these other precious metals? /s I understand bitcoin as an investment on its own merit, but comparing it to precious metals makes no sense.
Goldbugs are, in the main, not big on Silverr - go ask on their subs.. I have about 10% of my wealth in gold (enough to live on for 2 years) and only a very tiny amount of silver.
Good and silver have been around as a form of money for millennia while Bitcoin had been around for less than 20 years. I’ll hold with mostly gold and silver at this time based on that track record.
Bitcoin has the uses of gold, and more. A certain amount of wealth from all secotrs will be securitized into crypo. Primarily becuase crypto is a better store of that wealth, more liquid and transportable.
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I would actually say it’s more likely Bitcoin dies in favor of superior coins but that’s an entirely different, highly opinion based discussion
gold and silver are extremely manipulated, and they are de facto inflated in supply by the giant trust between private banks and governments to suppress its price, back in the pre Nixon days by dishoarding gold at strategic moments, and since through the Future Markets [https://www.gata.org/node/20925](https://www.gata.org/node/20925) >**Why have Western central banks been rigging the gold market?** >It's because gold is a **powerful competitive international currency** that, **if allowed to function in a free market, will determine the value of other currencies, the level of interest rates, and the value of government bonds.** In a free market gold's performance is usually the opposite of the performance of government currencies and bonds. A rising gold price signifies the weakening of government currencies, at least the government currencies in countries that don't produce a lot of gold. >**So central banks fight gold to defend their currencies and bonds against competition.** >The problem is that the tactics of Western central banks in their war against gold affect far more than gold. They affect markets generally and eventually *destroy* markets generally and damage the economies of all commodity-producing countries. This destruction of markets now has a name, a name used even by former members of the U.S. Federal Reserve Board. That name is "financial repression." \[...\] They used to do it conventionally and in the open by **dishoarding -- selling -- some of their gold reserves at strategic moments**, Then they began dishoarding from their gold reserves more often, even every day, as the United States, United Kingdom, and seven of their Western European allies did during the 1960s through a public operation called the London Gold Pool: The London Gold Pool held the gold price at $35 per ounce, the official price of gold set by the **Bretton Woods conference in 1944, until the pool collapsed in March 1968** *\[the precursor and catalyst to the Nixon Shock of 1971\]* under the rising demand that had drained the U.S. gold reserve from 25,000 tonnes down closer to the 8,133 tonnes officially reported today: After the collapse of the gold pool the United States and its allies regrouped to decide how to **rig the gold market** ***surreptitiously,*** **to do it behind the scenes** -- not just with dishoarding but also by what is called the **leasing of gold; by the purchase and sale of gold derivatives, including futures and options contracts**; and, more recently, by what is called **high-frequency trading undertaken through investment banks that gladly serve as government agents in the gold market,** providing camouflage for governments, since the investment banks can front-run government trades. \[....\] the British economist Peter Warburton discerned that **central banks were using investment banks to issue financial derivatives throughout the commodity futures markets to siphon away money that was seeking a hedge against inflation by investing in hard assets**. That is, derivatives like futures contracts can divert money away from the hoarding of real goods as stores of value. This diversion of investment is in the interest of governments, since **commodity hoarding would drive up consumer price indexes and make inflation even more obvious and distressing to the markets and the public**. >Most of these derivatives encouraged by government in the West are essentially **naked short positions on the underlying commodity,** promises to sell volumes of a commodity that are not readily available and cannot be obtained without sending prices way up.
you sound like me in the |\_iteC0iN subreddit
I love bitcoin, but you don’t understand precious resources if you think silver will lose its value. Silver is the only material that can clean water by depxidizing it I believe. Why all medieval forks and knives “silverware” is made of silver. Cups of silver. It has and will be around for eternity
Gold is showing to be a bad investment and not even be an inflation hedge. Price rises will always amount to more mining and more supply.
Maybe yes maybe no speculations at its finest but would be nice
maybe
One thing people don't realize is that there is a limited amount of gold out there. When you're buying gold on the stock market, the ones you're buying are printed. Npbpdy is going to stock up on gold bricks regardless. The new generation is all about digit assets. Bitcoin is not printed. There will only be 21 million. There's a reason why antiques are worth nothing because our generation could care less.
it won't, is it going to bankrupt Tiffany's lol