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The Big Difference Between Bitcoin and Ethereum

ds_mustang

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Here's a nice quote from the Ethereum founder on what differentiates Ethereum from Bitcoin:

“The big difference between Ethereum and Bitcoin is that Bitcoin is a platform where the value of the ecosystem comes from the value of the currency, but in Ethereum the value of the currency comes from the value of the ecosystem.”

To me this is the critical observation. IMO it's also a large part of why gold has been struggling for decades. It's not enough to have sound money buried in the yard or locked away in cold wallets. You have to develop a growing, vibrant economy that uses the money! Otherwise the store of value will simply remain buried in yard waiting for a future where society once again decides to USE it. And while it's waiting it will remain undervalued. This is why I look for businesses that try to bring gold back into financial and economic use (and unfortunately there are scant few of them).

This is why I'm more invested in Ethereum than bitcoin. When I see the ecosystem being created by Ethereum and all the various use cases being invented and used, it makes bitcoin look sickly by comparison. In Ethereum when a useful new token or protocol is released, you can watch in real time as people move into it, using it, putting their time and money into it, expanding value. You can see other projects then work with the protocol or build on it to create even more value. An economy is a living, growing thing. Regardless what price does, if you can watch usage grow, you know that eventually the value will follow. Somehow the bitcoin community missed this key fact, and to a large extent so does the gold community.

Quote from this article:
 

anywoundedduck

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I'll keep my gold and silver, and let that other guy build up the economy, thank you very much.
 

ds_mustang

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I'll keep my gold and silver, and let that other guy build up the economy, thank you very much.
Then your gold and silver will never see their true value. True money has another key property that isn't mentioned as much anymore... it's USED.
 

ZZZZZ

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To use the PM analogy, I see Bitcoin as gold and Ether as silver.

They are not competitors, they are complimentary assets. Hold both.
 

anywoundedduck

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Then your gold and silver will never see their true value. True money has another key property that isn't mentioned as much anymore... it's USED.
And your crypto will soon be worthless. Crypto is a huge scam perpetrated by the banksters.

And I might add, have you ever noticed the name of this forum?
GOLD IS MONEY, not BITCOIN IS MONEY.
Just saying.
 

Mujahideen

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And your crypto will soon be worthless. Crypto is a huge scam perpetrated by the banksters.

And I might add, have you ever noticed the name of this forum?
GOLD IS MONEY, not BITCOIN IS MONEY.
Just saying.

APMEX is willing to trade gold for Bitcoin. I’d say Bitcoin is well established as a currency.
 

nickndfl

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Everybody who bought BTC is a genius because it went up. The problem is they don't know what they don't know. It will eventually crash. Until then party like it's 1999.

I would trade all cryptos for gold at this point.
 

anywoundedduck

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APMEX is willing to trade gold for Bitcoin. I’d say Bitcoin is well established as a currency.
And that is attracting many bitcoin bag holders into precious metals, which is good for metals, and a good ploy by APMEX. I hope all the metal dealers do the same.
I don't believe for a minute that bitcoin is an established currency, and you can bet APMEX dumps it as fast as they get it in, for FRNs.
 

#48Fan

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Everybody who bought BTC is a genius because it went up. The problem is they don't know what they don't know. It will eventually crash. Until then party like it's 1999.

I would trade all cryptos for gold at this point.
Yes, you've been wrong how many years now? If I would have said it was a good time to buy 3 months ago when it was 30k, you would have said "no, bruh, it's going to zero". I'll trade my cryptos for gold/silver when this cycle tops out, and that's not now.
 

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Personally, I don't have gold or silver because I hope to someday use it. In fact I hope I never use it. I hope my relatives use it after I'm gone.

Because looking back through history, no matter what was being used as circulating money at a given time and place, that circulating money could almost always be exchanged for gold or silver. I have no idea what will be used as "money" in the future, whatever place my relatives end up. Perhaps it will still be dollars, or maybe yuan, or rubles, or perhaps even several kinds of digital currency. I have no idea. But gold or silver is very likely going to help my relatives survive in that time and place.

It's not a guarantee, of course. I can see a time where 22LR cartridges are better "money" and no one will trade much of anything for a gold or silver coin. But it's likely that once enough trade gets going again, gold and silver will start being accepted, and my relatives having it will assist in their survival. Hopefully.
 

chrisflhtc

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If I could find the 1.5 bitcoins I had All would be good I would trade it for gold however I lost the wallet number.
 

ds_mustang

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And your crypto will soon be worthless. Crypto is a huge scam perpetrated by the banksters.

And I might add, have you ever noticed the name of this forum?
GOLD IS MONEY, not BITCOIN IS MONEY.
Just saying.
There are multiple forums here and the name of THIS forum is "Digital Currencies." But nevertheless, my post specifically talked about gold in relation to crypto, so I think it was rather fitting even for one of the gold forums.

As for the banksters, I think crypto is going to put them out of a job (hopefully with gold's help).
 

ds_mustang

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Personally, I don't have gold or silver because I hope to someday use it. In fact I hope I never use it. I hope my relatives use it after I'm gone.

Because looking back through history, no matter what was being used as circulating money at a given time and place, that circulating money could almost always be exchanged for gold or silver. I have no idea what will be used as "money" in the future, whatever place my relatives end up. Perhaps it will still be dollars, or maybe yuan, or rubles, or perhaps even several kinds of digital currency. I have no idea. But gold or silver is very likely going to help my relatives survive in that time and place.

It's not a guarantee, of course. I can see a time where 22LR cartridges are better "money" and no one will trade much of anything for a gold or silver coin. But it's likely that once enough trade gets going again, gold and silver will start being accepted, and my relatives having it will assist in their survival. Hopefully.
Honestly that's a strong argument. Gold is certainly the money with the most history. However at no time in the past did we have a digital reality like we do today. And digital reality has properties that are very different than the physical world... such as no borders, infinite space, lightspeed travel, etc. The digital realm is growing exponentially and looks to become larger and more important in many ways than the ordinary physical world. Meanwhile, and unfortunately, gold doesn't work as well as money in the digital realm as crypto. So there are arguments that gold might give way to crypto, at least in the digital space. After all, the bow and arrow fell to the gun, and the horse and buggy fell to the automobile.

But we also have examples of newer and better technologies failing to replace older technologies. Quartz watch technology, for example, was at one time expected to destroy the swiss mechanical watch makers, but it didn't happen. Maybe gold, like expensive mechanical watches, is a historical luxury item that will successfully resist all attempts to displace it.

Anyone that sold their crypto for gold anytime in the last decade made a huge mistake. But I also think anyone who sells their gold for crypto today is also likely making a mistake. I don't know what is going to happen. So my strategy is simple: own both crypto and gold. It's worked out pretty well so far.
 
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ds_mustang

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To use the PM analogy, I see Bitcoin as gold and Ether as silver.

They are not competitors, they are complimentary assets. Hold both.
Another analogy I've heard that I think is slightly more accurate:

Bitcoin is gold and Ethereum is google.