The Difference Between Bitcoin and Gold (w/ Roy Sebag)

Roy Sebag, CEO of GoldMoney, talks with Stephan Spears of McEwen Mining about the difference between gold exploration and bitcoin mining. He explains why the differences between the two processes are important for users and investors alike. This clip is excerpted from a video published on Real Vision on July 3, 2019 entitled “No, Don’t ‘Drop Gold.’”

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The Difference Between Bitcoin and Gold (w/ Roy Sebag)

Transcript:
ROY SEBAG: Actually, Stephan, I'd be interested in your view on the differences between gold and crypto mining, since you actually have more experience than I do in the extractive industries. And you are an executive of the New York Stock Exchange list, a gold miner. What do you think are the differences here? How do you approach this thing?
STEPHAN SPEARS: Well, I think the- you talked about exploration. And that's an important point. There's essentially two phases in mining. First, you need to find the ore body, that's often the most difficult part. Only probably one in 5000 prospects ever become an actual ore body. In mining, a lot of the value that's created actually occurs before any gold is brought out of the ground. And I think that's an important distinction, because that part of the success of exploration creates the capital, forms the capital that allows mining to persist. The next phase, of course, is getting through the regulatory hurdles, and actually raising the capital necessary for this very, very capital intensive business of gold mining. And I think that those distinctions and the geographic randomness of gold deposits globally really gives it a very decentralized look relative to however many crypto miners are-
ROY SEBAG: And also a natural meritocracy. So, what's the equivalent in cryptocurrency mining of a high grade mine? A high grade gold mine or a discovery?
STEPHAN SPEARS: The best you can do in crypto is just having lower cost electricity locating in Iceland or Quebec where you have subsidized power
ROY SEBAG: Which is, once again, taking away from the society's resources.
STEPHAN SPEARS: Exactly. All of that electricity could be put into other productive uses. So, people have determined that this is the best use case for that power.
ROY SEBAG: Or what's the equivalent in gold mining? What is it, 30%, 40% of gold mining is still done artisanally by hand?
STEPHAN SPEARS: I think that's important, because in a lot of countries that perhaps don't have the strong fiat currencies that exist in the United States and Canada and Europe, their way of turning their incremental effort and toil into savings and wealth is through gold mining, and probably 30% or 40% is still mined artisanally. And of course, there's a contrast there, because that's not something that's accessible. Somebody with no capital in a poor country cannot go and start a crypto mining business, that's just not going to happen.

[marcelinoperez]

agree, Gold is no risk, Bitcoin is a big risk

[NB-fcrl]

Bitcoin is manufactured, gold is not. There is no alternative for gold, its an element. There are many alternatives to Bitcoin, which can be used to transact.

[christophera-realone]

Bitcoin is a secure form of air ( nothing) and since electricity is used to mine the air (bitcoin) it gives the air some sort of value that I will never understand. Gold is what it is

[bozolito]

Informative but I found the scenario of these two picking up tools to dig in a mine laughable. With all do respect their manicures wouldn’t allow it

[WorldReserveCurrency]

Brilliant comparison. I have some crypto as a small speculation... but even as a security geek... I think it's just stupid. I maintain wealth away from the banks via physical gold.

[pulseorca]

And the worst part is, I will never get that seven minutes back.

[ItsFazsha]

When your VP's are not old enough to have any wrinkles, I get nervous.

[sciflyer]

Don't forget that this guy is the CEO of GOLD MONEY. Talking his game. This is an excerpt of a longer interview.
When the central banks around the world create digital currency, how much energy and money does it cost to keep the networks running to continually validate the holdings of those digital dollars worldwide? Those networks are running 24/7 just like Bitcoin.
What is the volumetric space of all the worlds gold mines? All the worlds gold vaults? All the worlds gold refineries? They don't just mine, refine, and leave it lying on the ground.They don't just pack up and leave after one year of mining. It's a huge amount of area and resources. How much energy does it cost to run the worlds banking industry? All the computers and servers used in the banking industry that need replacing every four years, how much do those cost? I'm sure Bitcoin costs less.

[dudeyes]

Bitcoin, has gone up because people in China are converting their currency into other viable options. China allows only $50, 000 per citizen taken out of China.

[ChitranjanBaghiofficial]

somone get roy sebag and anderas monopolis together for debate.

[brandonderrick]

Answer this: when someone finds gold do they add it to a worldwide ledger? How do we know the exact amount of gold in the world? Everyone is being honest despite sovereign incentives not to do so?

[torydutton]

The differences between gold and bitcoin:
1. Bitcoin is unconfiscatable. If secured correctly, it’s better than a Swiss bank account used to be.
2. Bitcoin is unsensorable. It can be transferred globally and not even governments can stop it.
3. Bitcoin’s stock-to-flow will double every 4 years regardless how many resources are devoted to mining it. In 2024 bitcoin’s stock-to-flow will go to 100. In 2028 it will go to 200.

[leroyjones]

I think there’s gold in them there Hairs!

[stacyblaustein]

The difference between bitcon and gold? Gold will never have a bidless market, bitcon will encounter a completely illiquid, bidless market.
The only crypto worth investing in is the Venezuelan Petro because it's guaranteed by a stockpile of gold, oil, diamonds, and iron ore and it's protected by an army. petro.gob.ve/index_eng.html

[Travelingman-]

Hey Roy, ever heard of renewable energy? What humans are not part of nature Roy, false separation?

[stacyblaustein]

Clown shoes, clown socks! Can you PLEASE teach people how to dress?!

[BordeauxFanatic]

Hilarious satire piece! Nice job. I almost took this seriously 😂👍

[omphat]

Lol, I think you forgot to read up on how Bitcoin works 🤦‍♂️