Gold outflows, bitcoin inflows

Discussion of the Gold portion of the Permanent Portfolio

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bitcoininthevp
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Gold outflows, bitcoin inflows

Post by bitcoininthevp » Tue Jan 05, 2021 2:28 pm

Im curious if bitcoin really is becoming a competitor to gold. Im a fan of both assets.

Since October:

More than $3bn of inflows into Grayscale Bitcoin Trust
More than $7bn of outflows from Gold ETFs

Image

Does anyone else have other data sets on this?
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Ugly_Bird
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Re: Gold outflows, bitcoin inflows

Post by Ugly_Bird » Wed Jan 06, 2021 2:16 pm

bitcoininthevp wrote:
Tue Jan 05, 2021 2:28 pm
Im curious if bitcoin really is becoming a competitor to gold. Im a fan of both assets.

Since October:

More than $3bn of inflows into Grayscale Bitcoin Trust
More than $7bn of outflows from Gold ETFs

Image

Does anyone else have other data sets on this?
Most likely it is a temporary thing while BTC is bullish.
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bitcoininthevp
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Re: Gold outflows, bitcoin inflows

Post by bitcoininthevp » Wed Jan 06, 2021 2:20 pm

Ugly_Bird wrote:
Wed Jan 06, 2021 2:16 pm
Most likely it is a temporary thing while BTC is bullish.
But regardless, do you think people are actually taking billions out of gold and putting it into bitcoin?
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Ugly_Bird
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Re: Gold outflows, bitcoin inflows

Post by Ugly_Bird » Wed Jan 06, 2021 2:28 pm

bitcoininthevp wrote:
Wed Jan 06, 2021 2:20 pm
Ugly_Bird wrote:
Wed Jan 06, 2021 2:16 pm
Most likely it is a temporary thing while BTC is bullish.
But regardless, do you think people are actually taking billions out of gold and putting it into bitcoin?
I do not think so. At least yet :-)
perfect_simulation
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Re: Gold outflows, bitcoin inflows

Post by perfect_simulation » Fri Jan 08, 2021 9:53 am

I think there probably is some gold flowing to bitcoin. A lot of traditional investors view Gold/Bitcoin as insurance, not strictly as an inflation hedge.

In my view bitcoin is a currency like cash, although without the backing of a government. Of 25% cash, I put 2.5% into crypto.
barrett
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Re: Gold outflows, bitcoin inflows

Post by barrett » Fri Jan 08, 2021 11:03 am

bitcoininthevp wrote:
Wed Jan 06, 2021 2:20 pm
Ugly_Bird wrote:
Wed Jan 06, 2021 2:16 pm
Most likely it is a temporary thing while BTC is bullish.
But regardless, do you think people are actually taking billions out of gold and putting it into bitcoin?
Days like today sure make it look like this is what's happening. At the moment (noon EST) Gold is off by 3% and Bitcoin is up by 7%.
Don
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Re: Gold outflows, bitcoin inflows

Post by Don » Sun Jan 17, 2021 11:26 am

What happens when bitcoin is regulated and destroyed?
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bitcoininthevp
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Re: Gold outflows, bitcoin inflows

Post by bitcoininthevp » Sun Jan 17, 2021 12:00 pm

Don wrote:
Sun Jan 17, 2021 11:26 am
What happens when bitcoin is regulated and destroyed?
Don, seems rather aggressive and off topic for the thread but Ill take a crack at a response which includes gold.

What happens when gold is regulated and destroyed?

Is it harder to regulate & destroy gold or bitcoin?

Who is the one regulating bitcoin in this scenario and how? Will other jurisdictions follow along or be emboldened to take an opposite stance?

Does regulating bitcoin destroy it?

Usually when people say something like this they mean, will bitcoins price go down if the US makes it illegal to buy/sell/hold bitcoins? Some responses in this thread for you to review: viewtopic.php?f=9&t=11661&p=218930#p218930

It is actually harder in many respects to stop or regulate bitcoin when compared to gold. Jack booted thugs cannot come to your house looking for bitcoin and find any physical thing like they can with gold. Governments dont hold much if any bitcoins like their huge gold positions which can make price manipulation easier. Physical gold is transacted physically which violence and governments are better at stopping than some numbers floating by on the Internet. Gold, due to its achilles heel of being in the physical world, has caused it to largely centralize in a few spots making control easy.

US banning bitcoin would not be a good thing for bitcoins price, but it also wouldn't mean "the end". Miners can mine nearly anonymously with a small footprint in the physical world. Users can transact in largely private. Holding bitcoin can be impossible to detect in the physical world, etc.
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Ugly_Bird
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Re: Gold outflows, bitcoin inflows

Post by Ugly_Bird » Sun Jan 17, 2021 4:37 pm

bitcoininthevp wrote:
Sun Jan 17, 2021 12:00 pm
Holding bitcoin can be impossible to detect in the physical world, etc.
But cashing out would be difficult.
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bitcoininthevp
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Re: Gold outflows, bitcoin inflows

Post by bitcoininthevp » Mon Jan 18, 2021 1:28 pm

Ugly_Bird wrote:
Sun Jan 17, 2021 4:37 pm
bitcoininthevp wrote:
Sun Jan 17, 2021 12:00 pm
Holding bitcoin can be impossible to detect in the physical world, etc.
But cashing out would be difficult.
It would be harder but still easier than cashing out of a banned gold.

Bitcoin: "What is this bank transfer I see to your account?" "Oh, consulting"
Gold: "The postal gestapo has detected gold in an outgoing mail item. Please report to jail."
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Smith1776
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Re: Gold outflows, bitcoin inflows

Post by Smith1776 » Mon Jan 18, 2021 7:02 pm

I just own both. Problem solved.
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