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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About Gold:
A collection of interviews and documentaries focusing in on the famous store of value. The series takes a 360-degree view of the precious metal by examining gold’s role in history and its proper place in modern investment portfolios. It interviews experts in diverse fields including mining, investment management and bullion storage.

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The Difference Between Bitcoin and Gold (w/ Roy Sebag)
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Transcript:
For the full transcript visit: https://rvtv.io/2FCyKDj
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.

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

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Kane Dane