They are both backed by squat. Just digital numbers and paper (mostly digital with dollars, all digital with bitcoins), like the money you “think” you have in your bank. It’s not anything you can store in one of these: http://www.bloomberg.com/news/2013-11-10/gold-vault-for-2-000-tons-opens-in-shanghai-as-bullion-goes-east.html
Keep ignoring what I say.
Its a free country.
You say that bitcoins aren’t backed by anything and that the U.S. dollar is backed up by the “labor of its citizens.” Can you explain what that means? That’s the first time I’ve ever heard that the U.S. dollar is backed by “the labor of its citizens.”
Yes, I agree that bitcoins are more volatile.
It’s paper issued by the Federal reserve and is legal tender.
It’s worth what it can buy. It’s fiat money.
Bitcoins are not backed by anything and because of their volatility can suddenly be worth far less than the current price.
At its low of the day value this morning a bit coin was worth 20% less than it was yesterday.
The U.S. dollar index has not varied more than about 3% from mean over the past year and its purchasing power is near flat.
The Fed job is to have a stable currency. Over short term they are doing OK. Over the long term they suck.
They are scared to death of deflation and are desperately trying to avoid it. They are wrong to do so IMHO.
Deflation is the natural course of prices as productivity increases.
The Fed is making a mess of our economy and enabling the fools in DC to spend recklessly.
But how is the dollar backed by labor? I don’t understand what that means.
The labor of the American people is taxed to pay for the operations of government AND the debt it issues.
Where do you suppose our GDP comes from?
In the end it is the American people and our economy that back the Dollar.
Perhaps you should start paying Chris and all NACHI staff in bitcoins.
I wonder if they would accept the risk.
I know I wouldn’t.
The current bubble can only benefit those who hold bitcoins if they exchange them for something real.
Until then they are worth far less than FRNs.
I read that due to the way they were created half of all bit coins that can be used are already in circulation making there a ceiling of the amount that can created in the near future.
This means only a small group can control them and perhaps only barter with each other.
There can only ever be a specific number of bitcoins. 21,000,000
It was designed that way on purpose.
It is suppose to mimic a real commodity like gold in that it becomes more and more expensive to mine and the availability is finite.
The Bitcoin lost 20% of it’s value after China banned it.
They partially banned it.
Chinese citizens can still own and use it.
Not everywhere.
And it’s still crashing.
Thanks.
Crashing? Oh no. Where did I hear that
Chinese were the main frenzy buyers. China is trying to curb the wild speculation.
So bitcoin has lost 50% of its "value from a few days ago.
Did you get out did ya?
Chris bought a bunch at $17 and we’re partners on a bitcoin mining machine. In it for the long haul, just like gold. I don’t trade anything for U.S. dollars, not even digital currency. I trade dollars for things. Been a buyer all my life. When I turn 75, I might go from being a buyer to seller.
Well you have to admit that loosing half its value in a few days doesn’t make it much of a stable currency.
Good luck. I’m a bit surprised that a gold bug would get involved…
Neither do little pieces of paper with people’s faces printed on them (U.S. dollars).
True for the purchasing power of U.S. dollars too.
Gold isn’t used almost anywhere as a means of exchange (as “money”) and it hasn’t collapsed in thousands of years.
And anyone who thinks the dollar can’t collapse (like all other fiat money in human history has) is delusional.
The big difference between bitcoins and dollars is that the Federal Reserve and North Korea can’t debase bitcoins because they can’t print billions of them, just like they can’t print gold. If you want to increase the supply of bitcoins or gold in the world, you have to mine for both.
Also, if you don’t like digital currency, you shouldn’t like the U.S. dollar either. The U.S. dollar is mostly a digital currency. There is only a little over a trillion U.S. dollars that have actually been printed or coined. The rest (way over 10 trillion) is digital.
Lololololololol