Gold and Bitcoin punish government incompetence; for their price to rise, all you have to do is sit back and wait for the government to mismanage the money stolen from taxpayers.
Bitcoin has many advantages over gold, but it has one major disadvantage: its logical nature is not underpinned by physics, but by humans. Humans cannot change the physics of gold, but they can change Bitcoin’s rules – either through inept and corrupt developers or through a consensus among users that takes the wrong direction.
Therefore, with Bitcoin, you have an active responsibility: do it right.
Replies (6)
Does gold punish governments? When its not verifiable how much they hold, its the perfect poker play. Bitcoin however would expose how poor they are.
You don’t care how much gold governments hold; the price of gold is manipulated in exactly the same way as the price of Bitcoin.
Just buy gold and wait – what does the government care? The same applies to Bitcoin.
Yes, but they cant let you verify how much they hold which is why Gold doesnt punish them the same as a Bitcoin standard would. If Fort Knox was verified empty would punish the US for example.
It has also been a fallacy to think that, unlike the price of gold—which is underpinned by unverifiable reserves—the price of Bitcoin could not be manipulated.
That doesn’t matter; right now, in the ETF markets, market makers can create more contracts than there are actual assets backing them and redeem them without having to buy any Bitcoin—in other words, by creating ‘paper’ Bitcoin.
Yes, the term Financial Markets, is a complete oxymoron, because the reality is that they really have nothing at all to do with Finances or Markets. They have just descended into a complete corruption of predictions, manipulations and deceptions
That wasnt my claim, we are talking about an asset punishing governments. Gold hasnt punished governments and is the perfect asset for them because of the obfusication re: holdings, ownership, supply estimates etc.
Although Wall Street controls bitcoins price at the moment, in the long run it would punish governments if they adopted it because the fixed supply would expose their money printing scam - gold doesnt do that...
