5
The debate between Bitcoin and gold has been raging for years now, and it doesn’t look like it’s going to end anytime soon. Both have their advantages and disadvantages, and it’s up to the individual investor to decide which one is right for them.
Gold has been a reliable store of value for centuries, and it’s still seen as a safe haven asset in times of economic uncertainty. It’s also a tangible asset, meaning it can be held in physical form. Gold is also relatively easy to buy and sell, and it’s not subject to the same volatility as other assets.
On the other hand, Bitcoin is a digital currency that has been gaining traction in recent years. It’s decentralized, meaning it’s not controlled by any government or central bank. It’s also highly liquid, meaning it can be easily bought and sold. Bitcoin is also much more volatile than gold, meaning it can experience large price swings in a short period of time.
Ultimately, it’s up to the individual investor to decide which asset is right for them. Gold is a reliable store of value, but it’s not as liquid as Bitcoin. Bitcoin is highly liquid, but it’s also much more volatile. Both have their advantages and disadvantages, and it’s important to do your research before investing in either one.
Well, the dollar is currently backed by nothing, so it’s unlikely to become backed by bitcoin. There is a big push for CBDCs, who knows what those will be backed by. My guess is nothing, again.
I think, our fiat will never be backed by anything ever again.
> Will the dollar be backed by Bitcoin??
Suppose they introduced a “Bitcoin-backed” banknote.
Stop and think. They once *claimed* to be backing the US Dollar with gold. It turned out that they did not actually back the US Dollar with gold – they lied. Other countries soon figured it out, and began asking to cash their dollars in for physical gold. Essentially, there was a “bank run” against the US Dollar. Nixon had to go in front of cameras and confess, in effect, “There is no gold backing the US Dollar. We are crooks. Fuck you. We have nukes and you don’t.”
So, they once screwed everybody by *claiming* to be backing the US Dollar with gold, when they weren’t.
If/when they *claim* to back some new form of banknote with Bitcoin, are you going to be dumb enough to believe them? I know I won’t believe them – they are known liars and criminals.
Let’s back up and think about why people were using (supposedly) gold-backed banknotes in the first place, instead of just using gold/silver coins.
It turns out that gold has some properties which you want your money to have: durable, divisible, portable, fungible, recognizable, and **scarce**. Gold has all of those. Bitcoin also has all of those.
Gold has some significant problems, especially for rich people:
* Expensive to store securely
* Slow and very expensive to transport securely
* Counterfeit gold, for example, gold-coated tungsten
People began depositing their physical gold with local goldsmiths, who already had good security/vaults/guards… The goldsmiths would give depositors “claim checks” in case they wanted to take possession of their gold in the future.
Eventually, people started trading those “claim checks” instead of the physical gold, and gold-backed banknotes became a form of money.
But the goldsmiths/bankers often lied, as mentioned earlier.
Bitcoin is inexpensive to store securely.
Bitcoin is fast and inexpensive to transport securely.
Detecting counterfeit Bitcoin is trivial.
There is **no valid reason to let somebody else hold your Bitcoin**, thus, there is no valid reason to use “Bitcoin-backed” banknotes. Just use actual Bitcoin.
Think about why the dollar was used with gold backing it instead of using gold directly. Gold was expensive to move across great distances. Dollars are much more portable, but they lack the properties of gold.
Since bitcoin can move across the planet at the speed of light, why does it need to back a paper money? We can just use it directly because it doesn’t have the drawbacks of gold. So it makes no sense to use a bitcoin backed dollar.
If your income tax was 100%, what would you do?