I just sent this text to my Dad to try and explain why #Bitcoin is better than gold or a gold backed currency. Let’s see how it goes
“The argument I had earlier against gold was that it’s expensive and slow to transport and verify its purity/authenticity. This naturally leads to banking and gold-backed bank notes becoming the medium of exchange, especially when business deals and information are traveling at the speed of light like we have today. I’m pretty sure Rothbard talked about how these notes from competing banks would trade at the relative discount compared to the trust in the bank actually having the money. Since it’s inconvenient to have to keep track of a bunch of different types of bank notes, people will naturally gravitate to using the few most accepted banks, which leads to centralization and eventually (by government decree) central banking. If someone wants to trade their notes for the underlying gold it’s still expensive to transport and verify, and slow to actually get the gold, so no one will do it unless they are really sure there is a problem (this holds even with a lot of competing banks). It also opens the door to things like executive order 6102 which banned private ownership of gold. From there it’s a short step to close any exchange for gold like Nixon did, which the government wants to do anyway because of how much more power that gives them by allowing what we have now.
What we need is a money that can travel at the same speed as the rest of the economy, can be audited easily and quickly (idk maybe every 10 minutes by millions of people around the world), is divisible to small amounts to facilitate exchange, and of course that shares similar characteristics to gold with a finite supply. That way, in the event of cheating, as seen with FTX, everyone can immediately withdraw their money or transfer it to another institution. It could also allow anyone to be their own bank if desired. This eliminates the inconveniences associated with gold. There won’t need to be the centralizing forces at play. (If you didn’t get the point by now this describes #Bitcoin)”
DanDjarin / Dan Djarin
npub19n…vh920
2024-01-18 06:16:47
Author Public Key
npub19nfz3ksvl5sc5vwt6z83rr7mmzzpam69ntaz8av8pmt9tl04mgzs3vh920Published at
2024-01-18 06:16:47Event JSON
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"content": "I just sent this text to my Dad to try and explain why #Bitcoin is better than gold or a gold backed currency. Let’s see how it goes\n\n“The argument I had earlier against gold was that it’s expensive and slow to transport and verify its purity/authenticity. This naturally leads to banking and gold-backed bank notes becoming the medium of exchange, especially when business deals and information are traveling at the speed of light like we have today. I’m pretty sure Rothbard talked about how these notes from competing banks would trade at the relative discount compared to the trust in the bank actually having the money. Since it’s inconvenient to have to keep track of a bunch of different types of bank notes, people will naturally gravitate to using the few most accepted banks, which leads to centralization and eventually (by government decree) central banking. If someone wants to trade their notes for the underlying gold it’s still expensive to transport and verify, and slow to actually get the gold, so no one will do it unless they are really sure there is a problem (this holds even with a lot of competing banks). It also opens the door to things like executive order 6102 which banned private ownership of gold. From there it’s a short step to close any exchange for gold like Nixon did, which the government wants to do anyway because of how much more power that gives them by allowing what we have now.\n\nWhat we need is a money that can travel at the same speed as the rest of the economy, can be audited easily and quickly (idk maybe every 10 minutes by millions of people around the world), is divisible to small amounts to facilitate exchange, and of course that shares similar characteristics to gold with a finite supply. That way, in the event of cheating, as seen with FTX, everyone can immediately withdraw their money or transfer it to another institution. It could also allow anyone to be their own bank if desired. This eliminates the inconveniences associated with gold. There won’t need to be the centralizing forces at play. (If you didn’t get the point by now this describes #Bitcoin)”",
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}