Gold, Silver & Bitcoin. Old & New "Money" Are Shining. Why They're Not Mutually Exclusive & Why "It'll Never Happen Here" Are Dangerous Words.

in steemsilvergold •  7 years ago  (edited)

I try to signal the importance of dispassionately evaluating the benefits of different asset classes. We all have our biases and I'm the first to admit that I love the precious metal, despite the horror bear market they've been subjected to in recent years. That said, both gold and silver have just last week risen above their 200 day moving average.

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alternativeinvestmentcoach.com

I'm also the first to admit that I'm happily watching my holdings of BTC, LTC, EOS etc . rise against the fiat junk that they're denomination in. I also love the utility, even considering the delays and high transaction fees now a feature of BTC.

The truth is that both the metals and the cryptos, the oldest and the newest forms of real money respectively, exhibit similar properties. I happened upon a great article today that highlights this observation. The following quote refers to the price of bitcoin...

But if you think US$8000 is impressive, consider that in Zimbabwe it traded at nearly US$13,500 as locals piled in trying to preserve their money in the troubled nation. Bitcoin gives them the double benefit of being impossible to confiscate and easy to move offshore.

Throughout history gold and silver have played the role of real money as fiat currencies collapse, just as we are witnessing right now in Venezuela and Zimbabwe. Bitcoin is now joining those ranks, adding fuel to an already hot market.

Of course a natural reaction to any mention of Venezuela and Zimbabwe or other similar examples invite comments such as

...But we are in ‘the lucky country’ right? Such currency craziness could never happen here….

Well if you have the time, I really recommend that you make a coffee and digest this lengthy but excellent discection of the Australian economy. It should cast some doubts on the "that could never happen here" argument. Certainly people have said that in the past and they'll say it again. True money, in both its oldest and newest form are well positioned to protect assets as they always have.

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I agree buddy. It'll happen everywhere!
FYI Hilarious typo....

"that could bever happen here"

Resteemed.

Ha! I'm tempted to leave it in place! Naaa, I'll fix it. Thanks bud!

I mispelled cryptocurrencies - in the title - noticed on day 9.

That's a worry, especially here. We can thank the education systems I guess!

Haha, I guess it could be craptocurrency for some of the shitty alt coins that will fail eventually.

Everyone is going crazy about crypto and metals against each other, but they both dank against the dollar and that’s what matters...

Don't be ridiculous. If it was happening here, they'd have told me about it on The Project.

😂

  ·  7 years ago (edited)

Bitcoin derives it's value from it's use-case to store value, digitally across multiple nodes around the world in a decentralized way.

This means there is no entity to take down, or for to go mad with power. It simply exists as the internet does. If the internet or power goes down, the world would be fucked as it resolves into panic. But every single hard drive with a copy of the bitcoin ledger would have to be altered in exactly the same way (at the same time online) for the system to be hacked. Every hard drive would have to be destroyed for your reflecting balance on the last block to be lost. If your bank blew up, your balance would be lost. If your government goes mad with power, your fiat will become worth less than the labor of carrying it. Furthermore concerning value, there is a finite supply of bitcoin, a golden meteor can hit america and wipe it out, killing the demand for it, while doubling the supply. If civilization is truly entering an awakened state, our materialistic value would fall away and gold would be worth the little use case it has.

The block chain is the innovation of trusting each other by letting everyone look at all transaction taking place and agreeing on them. New use cases for the block chain include proof of work, proof of stake, proof of concept, proof of IDENTITY, proof of location, and even proof of existence. These use cases keep emerging as early innovators reap the growth of holding bitcoin. Big companies and even the banks and governments are getting in on the action. Most of these innovations are in the development phase and need the world's funding power to realize their vision, so go vote for the companies with a clear vision and a strong body to carry this out.

The money hungry worms behind our misguided capitalistic world are also amongst our dreamers and believers that want to make a difference for more then just their own sake, even some dreamers have turned to the dark side as power fills their minds. Companies get created around bitcoin and get's taken down by their government if they do not fall under regulation, an innovator with 'power' cannot blatantly state that he is aiming at disrupting the system of the people in control, he will be made an example out of. The real game changers are working with the system as power gets redistributed. The people in power are blinded by ignorance and their hunger for a piece of crypto's pie will be their downfall, once they realize we no longer see their need, it will be to late, they will not have more (previously perceived-) 'power' than the average adopter of the new world.

On that note I would like to advocate bitcoin and the need for a trust-less system. Imagine the story; Lord of the flies. A group of kids are stranded on an island and looses all civilization without it's rules and guidelines. I do not support the book's conclusion but I agree with the story. Once the fucked up side of people that shows itself at the end of the book is what would trigger change.
For human-kind to rise, we must experience some kind of fall, for if we keep rising we know we are probably on some kind of delusional wrecking ball. Once certain issues have been confronted, a resolution would occur and future resolutions would be built on previous resolutions. I believe our sense of reality is built on a number of false resolutions put into place for personal gain, these supports are crumbling and we might fall, only to rise in a real-free market where ethical-capitalist pillars can be built in the place of our current system or we can fall into the mad max fantasy and evolve from there.
Back to Lord of the flies. The kid's relationship was build around the need to trust, there was no mommy or daddy or teacher to validate the information they were sharing, just as in the real world, we need the service of a bank to confirm trust that we have been paid from someone else or are abiding by the rules as set out by the governing body in order to come to a conclusion. The block chain allow all the kids on the island to know exactly what each person is up to or effected by so no schemes or sense of delusional bubble mentality can occur. They furthermore do not need a parent to tell them what to do because they all have to be in consensus about a subject in order for them to move forward on a decision.

This system only improves as more nodes get involved and the bigger the track record of this proven system gets. Before globalization was a thing, is where the kids are on the island now. Once they find other islands with other groups of kids their resolutions would intertwine and a better resolution would be proposed, this is where we are now, except most of our leaders and the leader's influences are corrupt, not because the position corrupts, but corrupt people will find their way into the sweetest apple.

Distrust in our service providers of trust is causing chaos and a way to deal with each other without NEEDING to trust, because trust now simply exists through the method of the block chain, has come to light. I believe our fall might not be as big because we can take the system without destroying it. We have an alternative in crypto and we need just transition before the old system collapses. The old system is presenting itself in the crypto sphere with products that promise many things, like big returns and 'free money'. Just keep in mind why we need bitcoin and the block chain, think if the company that you are thinking of supporting, are supporting the old way of doing things, or are they working to a better future?

My belief is that fiat will end up in the hands of the 'poor' communities, this will empower them to rise to the digital world eventually, here is my article on this matter.

here a propsal on how to solve the problem that all the forks are trying to resolve. By burning the amount of bitcoins with which you want to transact with into fractions of that bitcoin, the bitcoin community could create this coin tied directly to bitcoin in the sense that 100 bitcoin silver represents a bitcoin, and a 100 bitcoin copper would be one silver, like in most mmorpg's. At the end of the month, your business burns all it's bitcoin silver and copper into bitcoin again, adding to the big ledger, and subtracting from the forked ledger. The forked ledger would always batch up with the bigger ledger, and value would remain in the system.

For now, stick with the smart people, the ones that have 'bettering the world' and not just the stakeholders in mind, because a 'better world' is approaching. Choose the right side.

I find your way of thinking, very refreshing... It's very rare to stumble upon people like you... Have a nice day, week, month, year and beyond...
@pocketechange

many things can coexist just seems some don't want us to think it is possible

Yes true. Rigid thinking perhaps.

The words are indeed dangerous..thanks too

My pleasure @mcsamm thanks 👍

Lets steem on

I have many questions about Bit-Coin. But 2 of them have never been answered. However, so as not to get into a long debate I'll will only ask the easier of the two. Which is, why ever time I see a representation of a bit coin does it look like a gold coin?
Inquiring minds would to know!

I suppose it's a way of visualising value @geneticmemory. Perhaps not inappropriate as they share similar properties.

Wow....amazing....!

👍

👍

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Upvoted and resteemed

Thank you @mjramosbuilt

New are silver and old is gold.

Namste