The Difference Between Bitcoin and Gold

Published on
July 18th, 2019
Duration
8 minutes


The Difference Between Bitcoin and Gold

Gold ·
Featuring Roy Sebag

Published on: July 18th, 2019 • Duration: 8 minutes

Roy Sebag, CEO of GoldMoney, talks with Stephan Spears of McEwen Mining about the difference between gold exploration and bitcoin mining. He explains why the differences between the two processes are important for users and investors alike. This clip is excerpted from a video published on Real Vision on July 3, 2019 entitled "No, Don't 'Drop Gold.'"

Comments

Transcript

  • FR
    Frank R.
    22 October 2019 @ 06:42
    I'm glad you agree that we are not going to get into non-sequiturs, suspension of laws of physics debate, so with that being said the difference between Bitcoin and Gold is that in the current state of affairs Bitcoin is simply better Gold than Gold. All this talk about miners perpetuating the existence of the network to the future is irrelevant. Gold virtually has one purpose, it's used for economic calculation that's why the majority, about 90%, is stored in vaults. It facilitates the economic coordination between parties that otherwise would not cooperate. It allows society to function, therefore the cost of mining, moving, and storing gold is well worth it because of the security it provides in the global economy. That's why we spend all that money and time to dig it out of the ground. It was the best asset to perform this task because it is the most scare asset we had until Bitcoin. Bitcoin is now the most scare asset we have. Economic stability is the most valuable thing we can spend our energy on because, without it, our societies would break down. Bitcoin is better suited to perform this economic calculation becuase its more scarce than Gold. So regarding energy, it's not taking away from society's resources, society would not function if we did not have a scare resource like gold and the better gold, bitcoin. Therefore nothing could be more important than securing the stability of our economy. So the cost of mining, securing the Bitcoin network, and transaction fees are well worth it and more important than any other function in society. Bitcoin does not waste energy, it provides us with the most important foundation for our society, economic stability. Read Bitcoin Does Not Waste Energy on Unchained Capital for a complete better break down on this.
  • RH
    Robert H.
    9 August 2019 @ 13:27
    I fully appreciate the energy system comparison, entropy, Mr. Sebag uses. It is undeniable. For governments to relinquish power to uncontrollable currencies at a time they seek control is doubt-able. The most important global take away, in another interview, he used "Lego" within his analogy in the plural "Lego's". If there is anything that makes a die-hard fan of Lego cringe, it is the use of the word "Lego's". Please correct. Without getting into the grammatical correctness, which I'm sure most understand, this is truly the most important issue of today. If not corrected, the next world war will be fought for those who truly run the world, we, our sons and daughters and future generations that build with "Lego."
  • CB
    Curt B.
    1 August 2019 @ 01:39
    The interviewer did most of the talking here
  • ls
    lucas s.
    22 July 2019 @ 12:00
    it doesn't have to be mutually exclusive, own both.
  • AL
    Alain L.
    20 July 2019 @ 19:13
    kind of silly. None of that matters! We are talking about VHS vs betaMAX. You can talk about betaMAX (or VHS) all you want. But it just doesn't matter. You can talk until you are blue in the face. It does NOT matter!! Bitcoin has already proved to be a viable alternative. By "viable alternative", I mean something that objectively does the job (store/transfer value -though admittedly hyper volatile and risky) AND people are willing to put billions of dollars into it. People see the value proposition of BTC. Silk road doesn't happen with gold!! Bitcoin offers value (ie silk road and more) beyond what can be achieved with Gold. We can sit here and talk philosophy and economics all we want. I know plenty. Rationally speaking, Bitcoin is already beyond academic talk. Meaning, whatever theory you think exists that necessarily dictates the death of Bitcoin needs to sleep with the fishes! From the Austrian viewpoint/perspective, none exist (at least that I'm aware of). All that is left is for the market to decide on VHS vs betaMAX. on Crypto vs Gold. I tend to think both will survive. In fact, I think eventually, after the legacy system is brought down, Gold will grow beyond the 8T market cap it has today. But the legacy system (government's control of money) needs to be dismantled first. Gold can't do that. Crypto can (I hope)! At the end of the day, all that needs to be recognized is that Crypto is not a fad. It is not Beenie babies. Crypto does the job! Now the market will decide! Mind boggling how some Austrian econs (ie p.Schiff) cannot grasp this. Let it go. Its been ten years. Crypto is here to stay. It will have Trillion+ market cap.
  • GF
    Gordon F.
    19 July 2019 @ 00:11
    Both gold and bitcoin can be considered as insurance against a fiat-currency system. Arguing that one or the other is better is really kind of pointless, in my opinion. Future events may reveal one as better than the other but it's wide open for debate at this moment. Gold and bitcoin have different strengths and weaknesses, and I hold some of both, although the gold currently outweighs the bitcoin. The really HARD question, in either case, is deciding when to sell, as either can become way overpriced, but I'm pretty sure that's a lot higher than current prices.