Gold and Silver is only as good as industrial demand, bitcoin and drug deals on Silk Road – March 28, 2020,
The insurance business could see large scale deflations if Bitcoin or blockchain ever becomes what I think it will become. It’s March 2020 when I’m writing this and I expect in the future there is going to be a short-lived Gold and Silver bull run, in which you’d be wise to sell when it happens, because if your assumption is that Gold and Silver will be used as or considered money, I think you’re wrong. I also don’t think you’re comprehending Blockchain and the potential future of Fiat Currencies.
This Ohio man is accused of trying to launder $19 million of bitcoin from the dark web | CNBC
backing money by gold in this era would be a bit silly, because of technological advancements, it’s unlikely that smart people are going to voluntarily serve hoarders of Gold and Silver. It’s not to say hoarders of Gold and Silver won’t have their own markets, but in regards to being forced to use a form of money controlled by speculators, it would be an asinine move.
Lab-Grown Diamonds are already a thing
Both Gold and Silver have properties needed for the development of technology and this shouldn’t be ignored, but both Gold and silver are recyclable and in many instances alternatives can be used in their place. Furthermore, energy the creation of cheaper energies could actually make Gold and silver, similar to diamonds replicable.
The rising cost of silver and gold could actually work against them, it’s because of heir price relative to the U.S Dollar why there aren’t any efforts to have lab-grown Silver and Gold. Lab-Grown Diamonds are a problem for Diamond miners of real diamonds, t’s not to say real diamonds won’t fetch more money, but lab-grown Gold also poses a problem for real Gold.
Now, most people are more familiar elemental aspects of Gold which require nuclear reactions, but the only reason it’s not pushed is that the price of gold is so low and the price of energy is so high. If that were to ever change, well, you’d see a spike in technological efforts to manufacturer their own gold.
I say this to the Gold bugs because when your gold and silver rally comes make sure you get off the ride at the right time. If you’re wondering why Central banks aren’t opposed to Bitcoin is that it’s not a good tool for money laundering like people imagined it would be. Bitcoin as an example follows you around everywhere, it’s a digital footprint just like fiat currency and it’s cheaper and central banks in the future could find uses for it.
Now, how I feel about money personally is I see money as bartering, meaning I could care less what money is backed by, I am in my heart of hearts pro-worker! I believe it’s your skills that pay the bills and the cure to the economic mess we’re in has little to do with central banking and more to do with a lack of financial education.
If you know nothing about how money works, it won’t matter if we have a central banking system, a gold standard or a blockchain, you will be taken advantage of, because you won’t be able to comprehend the strengths and weaknesses of any asset you hold.
When you’re a money moron you’re dependent on someone like broker or a politician to tell you what you should do with your money, how you should spend your money and what assets you should buy! I get that some people believe that Gold should be money I get that some people like blockchain, I also understand people who like the fiat monetary system. My position is I don’t care! Give me some of everything I consider an asset and let’s see what the democracy in the free market wants!
What blockchain does that I don’t think people understand yet is that it kills brokers and it kills the need for insurance. Because blockchain at least what I know about the Ethereum blockchain is basically the most efficient contract ever made. If I trade you this 1-ounce piece of gold of a brand new 13′ MacBook Air computer who wins in that scenario?
Well, that would depend on your perceptions. That’s how the market works, so try not to get caught up in this idea the Gold god to $10,000, because that would affect entire industries and if you think job creators aren’t going to fight back fiercely, I think you’d be sadly mistaken. If bitcoin or blockchain turns out to be what I think it could be, along with 5G this changes the world.
Lastly, Capitalism revolves around volunteerism! If given the choice I’m not going to volunteer my financial livelihood to any 1 speculator or 1 speculative industry! Get rich schemes usually work for the people selling them. If you’re a gold bug consider reading the blog post below.
Interesting times ahead!