Subnostr

What about when we can mine space rocks for gold and others?

Increasing the supply of gold still comes at a great cost but, yes, bitcoin shines in the area od scarcity.

One area where gold (and silver) shines is in the physical realm without the need for an internet connection. Bitcoin naturaly dominates in the digital realm.

The point being is that they can both be useful tools due to their unique properties and there is no "either/or".

For example, smaller, in-person transactions can be handled with silver which is a true bearer instrument that is untraceable cash with no need for connectivity.

Small, onchain bitcoin transactions have higher cost while Layer 2 solutions require connectivity and/or rely on trusted third parties that can rug you or leak transaction data.

Also, it's nice to have a physical bearer asset to trade with when your cell phone battery dies

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Discussion

Minnaar 1y ago

Silver and gold are non-digital, bearer instruments that are great for in-person transactions without the need for connectivity or trusted third parties. As bearer instruments they are true "cash" with all the privacy benefits and they are an excellent "Layer 2" alternative to bitcoin.

Since most people in the world will be unable to afford an on-chain bitcoin transaction, gold and silver can be a valuable, trustless, and private form of untraceable cash and store of value at the local level.

Bitcoin actually makes it possible for gold and silver to shine again while filling a very important market need for local, private, trustless transactions.

eCash and other Layer 2 solutions require connectivity and/or trust.

Consider the strengths and weaknesses of all of these and plan accordingly

#bitcoin

#eCash

#gold

#silver

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Thursday 5∞ 1y ago

Space mining will be a bigger upset to the precious metals/bitcoin ratio then the conquering of South America was to the silver/gold one.

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Minnaar 1y ago

Space mining comes at what cost, at what reward, and in what time frame?

Market prices will adjust to any new supply when that happens, thus reducing the incentive to undertake the expense of continuing to mine in space.

The point is that gold and silver are still viable and affordable complimentary assets to those that require internet connectivity, trust, and high transaction fees

Thursday 5∞ 1y ago

The short answer would be that there will never be more than 21M bitcoin. There are ways to exchange sats without internet, I'm sure you're aware of this. I'm a former gold and silver enthusiast. Gold is great for audio conductors and silver make great plumbing. As for your requested time-frame, well, be ready for some news later this decade.

Minnaar 1y ago

Yes, maybe in a decade. Until then, precious metals are a great form of cash accessible to everyone. Bitcoin is great too but all of these have their strengths and weaknesses. Use them for what they're worth to you

Thursday 5∞ 1y ago

It's very complicated to verify the purity and dimensions of said metals. Back to the Lydian Empire, the coin minters were using some of the ideas of Pythagoras to mess with the diameter and weight. Imagine how much you can tamper with those today. For everyday transactions, în case of power or internet outages, people would rather turn to barter locally. Then again, I imagine priorities would be very different that day. Plus, just the top 10% would transact in sats in meaningful volumes anyway.

Minnaar 1y ago

Agreed. And gold and silver are just another type of barterable commody with many characteristics that have made it the most desired commodity over the ages