Gold vs. Bitcoin: Clarifying the Energy Debate

First, here's a dose of sobering perspective: Back when people talked to each other for entertainment, given the lack of iPhone chargers in the mid-1800s, people would look into the distance and say something to the effect of "There's gold in them there hills," and they actually dug gold out of the dirt all day long.

The first is actually sifting through the earth looking for the shiny yellow stuff, i.e. gold.

Bitcoin and physical gold both have value, but their respective contexts are the decisive factor here.

So what the deal with gold? Well, according to the world's largest gold mining company, Barrick Gold Corporation, energy costs are $288 million per year.

Based on the corporation's annual report, gold production costs $794 per ounce.

Net earnings increased drastically from $-2.9 billion in 2014 to $1.4 billion in 2017.Global Gold Mining.

Gold is mined literally everywhere, save for Antarctica.

So if the global average for gold mined every year is 88 million ounces, according to the World Gold Council, it's fair to say gold production costs $70 billion every year.

Newly discovered mines are set for excavation starting in 2021 and expected to be sustained by 2023, meaning millions in additional gold reserves and millions more in production costs.

Barrick employees own 1.5 million shares of the company, so they have a fair interest in the gold hedge.