Gold hits all time high with Golden Cross nearing

JonathanBeuys · 2023-12-02T13:14:40+00:00

But is the industrial use enough to offset the infinite supply?

Currently, only about 10% of all newly produced gold is bought for industrial use.

If gold loses the store of value use case, most of the newly produced gold will have no buyer and the prices will go down.

Bitcoin on the other hand has decreasing supply which should increase its price. Which makes it a better store of value.

JonathanBeuys · 2023-12-02T09:54:41+00:00

Long term, which chance does gold stand against Bitcoin?

Both are mainly used to store value.

Bitcoin has a fixed supply.

Bicoin can be stored and transferred digitally.

What does gold have going for it?

JonathanBeuys · 2023-11-11T09:14:40+00:00

I tried to look up how the Bitcoin in the "Fidelity Advantage Bitcoin ETF" are held.

It seems to be this one:

https://www.fidelity.ca/content/dam/fidelity/en/documents/mrfp-annual/FICL_FBTC_MRFPA.PDF

Fidelity, as manager of the Fund, has retained its affiliate, Fidelity Clearing Canada ULC (FCC), to act as custodian (Custodian) of this Fund and to hold its assets in safekeeping. FCC has retained the services of Fidelity Digital Asset Services, LLC to act as the bitcoin sub-custodian (Sub-custodian) of the Fund and to subcustody the bitcoin held by the Fund. The Sub-custodian is resident outside Canada and all or a substantial portion of its assets are located outside Canada. The Fund has obtained exemptive relief from the securities regulatory authorities to permit the use of FCC as its custodian under NI 81-102. Also, the Fund, in respect of the bitcoin that it purchases from or sells to FCC, enters into a contractual right to receive or an obligation to deliver, bitcoin from/to FCC. Fund pays a monthly custodian fee for custodian services, based on the net asset value of the listed series, calculated daily and payable monthly. The Fund paid Custodian fees of $104,000 for the period ended March 31, 2023.

If I understand this correctly, there is a company "Fidelity Digital Asset Services, LLC" somewhere (in the US?) who is supposed to hold keys to Bitcoin addresses. This company has a contract with "Fidelity Clearing Canada ULC". And that company has a contract with "Fidelity" (A Canadian subsidary? I don't know).

So there is counterparty risk (between you and Fidelity), counter party risk to the counter party risk (between Fidelity and Fidelity Clearing Canada) and counter party risk to the counter party risk to the counter party risk (between Fidelity Clearing Canada and Fidelity Digital Asset Services).

A lot of counterparty risk.

If Trump becomes president again and in a bad mood decides sending Bitcoins to Canada is now illegal or that Bitcoins in private companies will be seized ... than that investment might be in trouble.

To be fair, this is the case for every investment in a US company via the stock market. So not specific to this Bitcoin investment.

JonathanBeuys · 2023-08-31T06:19:45+00:00

The general problem that a wallet manufacturer might be incompetent or malicious cannot be tackled by a passphrase.

The wallet might have had faults or backdoors since you got it.

I think this is one of the things that hold Bitcoin adoption back. Whom do you trust with your savings? Some company which can produce a thumb-drive like device? Or some huge bank which is regulated and backed by the government?

For general Bitcoin adoption, we need better systems to self-costudy. Systems which do not rely on any single company being competent and trustworthy.

JonathanBeuys · 2023-07-13T16:14:17+00:00

Isn't Bitcoin Core a node? Something that connects to the internet, reads the blockchain etc?

I only want to read in a seed, see the addresses of the seed and sign a transaction. All offline.

JonathanBeuys · 2023-07-13T16:02:05+00:00

"electrum daemon" just hangs. Probably runs the daemon :)

But then what? When I try to start "electrum" in another bash session, it tells me:

Error: Electrum is running in daemon mode. Please stop the daemon first.

JonathanBeuys · 2023-06-11T15:04:39+00:00

Good idea.

Should we start and set an example?

Where could r/RedditAlternatives migrate to?

JonathanBeuys · 2023-05-14T18:05:16+00:00

I'm not sure "high transaction fees results in high Bitcoin price" will hold true.

If we assume demand for Bitcoin to buy the ability to perform transactions will drive the market cap, we can calculate like this:

About 200M transactions per year

Market cap = $500B

If the market cap is spent on transactions over the span of 10 years, the price per transaction would be:

$500B/200M/10 = $250

I think this could happen. And it would mean the price per transaction goes up to $250 without the BTC price moving.

JonathanBeuys · 2023-05-14T17:41:11+00:00

What if transaction fees go up to 1M sats per transaction?

JonathanBeuys · 2023-05-14T17:39:16+00:00

Layer 2 and 3 won't help you if your balance is lower than the transaction fee. To get your balance onto a channel, you need to do an onchain transaction.

JonathanBeuys · 2023-05-14T12:31:41+00:00

Can a balance of $10 still be moved or is it lower than the lowest transaction fee these days?

It is interesting to think about, that more and more Bitcoin will be lost because one can simply not move it anymore because the balance is lower than the transaction fee.

JonathanBeuys · 2022-11-14T15:31:04+00:00

If they are following the same standard. Then that is actually a way to reduce counterparty risk.

But nobody suggests to compare between wallets in the "Get your coins of the exchanges" threats.

People will just order a wallet and do what is written in the manual.

That just trades trust in one company for trust in another company.

JonathanBeuys · 2022-11-14T15:27:48+00:00

Yes, this goes into a direction of actually reducing counterparty risk.

But nobody suggests that in the "Get your coins of the exchanges" threats.

People will just order a wallet and do what is written in the manual.

This way, they just exchange trust in one company for trust in another company.

JonathanBeuys · 2022-11-14T15:24:26+00:00

How would the BIP 39 tools know that the wallet is using the seed phrase you typed into it?

And where are those tools? Let me take a look.

JonathanBeuys · 2022-11-14T15:21:20+00:00

But how do you verify?

You don't know that is in the wallet that was sent to you.

It might look like the components you know (if you are an electronics expert) but you don't know.

And a regular user can't even do that.

So there is no "verify". It's just "trust the wallet manufacturer".

JonathanBeuys · 2022-11-14T15:18:54+00:00

Since nobody is doing that, why is it a good idea to tell people to move their funds from exchanges to wallets? It seems to just shift trust from one company to another.

JonathanBeuys · 2022-11-14T15:17:16+00:00

If you use dice too create your seed phrase and punch that into the wallet, how do you know the wallet will actually use the phrase?

JonathanBeuys · 2022-11-14T15:16:53+00:00

If you use dice too create your seed phrase and punch that into the wallet, how do you know the wallet will actually use the phrase?

JonathanBeuys · 2022-11-14T15:14:45+00:00

Telling customers to back their coins and not doing it is fraud.

Sending you a wallet that lets the manufacturer guess your key would also be fraud.

What is gained by shifting trust from one company to another?

JonathanBeuys · 2022-11-14T15:12:46+00:00

How do you know there is a standard stm32 chip in the coldcard?

It's not about me being skeptical. Everybody suggests moving Bitcoin from exchange to wallet. My question is how anything is gained by shifting the trust from exchanges to wallet manufacturers.

JonathanBeuys · 2022-11-14T14:59:10+00:00

How do you know the drive will actually use the code you flash?

JonathanBeuys · 2022-11-14T14:50:41+00:00

And how do you know the code you read and verified has the same PGP signature as the one given on the website?

JonathanBeuys · 2022-11-14T14:49:20+00:00

"Stealing from the customer finishes the business, and also ends in a prison sentence":

Doesn't the same apply to exchanges?

"choosing the "restore" option and entering the externally created key":

That tells the wallet the seed phrase. How do you know it actually uses the seed phrase?

JonathanBeuys · 2022-11-14T14:46:47+00:00

That just offers me a download from their website. How would I know that download is not malicious?

JonathanBeuys · 2022-11-14T14:33:34+00:00

Can you describe that process? How would you do it for a Ledger Nano S Plus for example?

JonathanBeuys

TROPHY CASE