Labor in some form is needed to create value.

What percentage of the world population can you buy labor off of with gold?

What percentage of the world population can you buy labor off of with Bitcoin or other cryptos?

What percentage of the world’s stored labor (stored energy) can you buy with each of those?

You can put me almost anywhere in the world and I would be able to buy labor in exchange for gold, regardless of the language spoken or local currency used etc.

Personally I think the notion that a crypto currency is a store of value is crazy.

By extension I guess one could consider owning a profitable gold miner as owning an in the money call option on value creation.

Lets say 100 ounces of gold can buy me labor and material to build a house.

Lets say it costs me 75 ounces to buy the labor and material needed to mine 100 ounces of gold.

Lets say 100 ounces of gold can also buy me 3 cars, 1 farm or 9,500 barrels of stored energy.

My gold mine allows me to have a universal 25% discount on anything and everything that 100 ounces can buy.

3 thoughts on “Musings on Gold vs Crypto

  1. marnix mommaerts says:

    Good point.
    What about silver?

    1. admin says:

      At these prices I prefer physical silver over gold. One could pretty much buy the same labor with gold (I think) and so I see it as a store of value as well. But I almost only old gold equities because silver is such a hard business to make money in and most silver juniors are not even cheap because retail investors always seem willing to pay much more for silver juniors than gold juniors.

  2. Tony says:

    Do yourself a favour and buy some crypto. I like you wasn’t a big believer in crypto but in 2016 I put $5,0000 into bitcoin and Ethereum. I didn’t even trade them and I cashed out in 2018 with $200K. Now, I’m going back in mainly because of these 3 gentleman in the following 2 videos. These guys are macro guys and for them to get involved only legitimizes the investment for me.

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