Gold has been valuable for 100’s of years. It has real-life, everyday use cases, and it is scarce.
When you ask any gold expert, or holder about the value of gold, they will tell you that we have always used it, always valued it, and history has a habit of repeating itself.
On our planet, gold is scarce. In history, we have attached and continue to attach some rare metals with riches, treasure and wealth. But what happens if the rare metal, doesn’t stay rare?
Enter space, NASA and asteroids
Outer space is a big place. We know that right above our head, there is a never-ending cosmos, possibly containing all of the metals and materials we could ever need.
On Earth, gold is rare. In space? It might be a little different.
Asteroid 16 Psyche
There are reports that there is an asteroid, containing more gold than you could imagine, within reach of our space exploration teams. NASA has said the first contact would be estimated around 2022, and the value attached to all metals found on the asteroid, is believed to equal;
$8,000,000,000,000,000,00
8,000 quadrillion USD.
Can any of us appreciate this number? Never mind reading the never-ending 0’s. The value attached is, oh so big.
Mining the metals, is not in current plans, or at least released into public knowledge. But, if this is truly possible in less than 10 years, it could completely wipe out the value of many metals, as they would become so common, that the demand could never outweigh the supply.
We could use gold for everything. Clothes, shoes, furniture, to the point where everywhere you go, gold would be as common as plastic.
Many people who don’t believe in bitcoin, believe in gold.
They are fundamentally encouraged by what we have on Earth, history and also how humans have interacted with it.
If it does become common, it loses the very value, the rarity that separates it from any other metal. Think about steel or copper. Both still maintain value, and are needed to create and live life as we know, however, the value is distinctly different.
Scarcity
Bitcoin is limited. It cannot be found, even in space, unless we have neighbors who have created the same currency, but let’s not get carried away.
Bitcoin
Bitcoin is offering a new global method of currency, which we all need. It is an open border payment system, secure and cheaper than traditional banking. The processing times and possibilities far succeed what we currently use, and there is still much more that can be achieved with the technology.
Time can change any value. What is worth something today, can be worthless tomorrow.
Is the mining of space asteroids possible?
As technology grows, so does what we as a race, are capable of. The only real issue, is cost and efficiency.
Flying to space, mining and then returning to earth with the metals, in any case, will not be cheap.
Currently, to reach the outskirts of our planet, without even breaching the atmosphere, can start at as much as $200,000. This is for a very small craft not carrying much weight. For a rocket and larger weight carrying capabilities; 100’s of millions of USD are required, and that’s just the tip of the iceberg.
For a reference, let’s say — 700 million USD
The first moon landing cost — 150 billion USD
We have come a long way since the first moon landings. Technology is better, more efficient and much cheaper, but it still comes at a cost, especially when we will be trying this for the first time in human history.
To finish up, let’s come back to earth
Will we mine gold in space anytime soon?
If we believe what NASA and other organizations are planning, it could be in our lifetime. Ranging from 10 years to 50 years. Is that soon? We will let you decide.
Will people switch to bitcoin if gold loses its value?
This is very possible, but again, is all about time.
Gold has a value, it always has, and will never change. But that value, today, is one of extreme importance. If we have more of it, does the value decrease?
Yes.
The storage of value and what we keep to ensure our wealth is secure is ever-changing.
Maybe it’s the time people in gold, started to consider a change. As much as they like to say; bitcoin could be worthless tomorrow.
Well, couldn’t the same be said for gold?
Contributed by the team of Hong Kong-based UniDAX: Universal Digital Asset Exchange