Gold Is Money- Take It or Leave It <meta name="p:domain_verify" content="f2d69330b627c0ff00a72d83c5ddfe34"/>
Gold and Bitcoin
I want to start by saying that the confidence of world financial system depends on the United States of America dollar, this also rests on the fact that Feds balance sheet is solvent, the solvency is at the mercy of its eight thousand metric tons of gold in US treasury. If you know any top person in Fed, s/he will acknowledge this fact. This kind of conversation could ignite argument, gold-to-money ratios, and similar issues.
Regardless, the role of gold in the international monetary system cannot be downplayed.
The central bank of any country will continue to keep gold in their vaults while the government downplays the significance of gold. Don't be fooled.
it is easier to be fooled than to be convinced that you are fooled.There are three basic things that define money, it is a medium of exchange, unit of account and store of value. It is hard to displace gold from these qualifications. According to a professor of chemistry in his interview with BBC Justin Rowlatt, Andrea Sella carefully explained why gold is the only metal that qualifies to be used as currency. Sella compared it with all elements in the periodic table and make the following justifications; it is scarce but not extremely hard to find, easy to process into coins and it has a low melting point. It is important to say that it does not easily react with air like silver and other metals. Therefore, gold is money not because it glitters, its unique properties made it world currency, our ancestors are aware of this.
Gold Versus Digital Currency
Electronic money is here to stay, it is part of our physical world, digital money it is charged sub-atomic particles that are stored in silicon chips.
No matter how much you try to protect it, it can be erased or hacked. The element with 79 atomic number is stable, Russian and Jewish or Chinese hackers cannot erase it. Gold continues its relevance as money.
Is Gold An Investment?
Hell No! Is the dollar an investment? No. Is Bitcoin an investment? No No. All of these are currencies that do not give any return except you put them to work, either by trading it or investing them in business. But when you hold them, the amount does not change, your ten (10) ounces of gold will remain as 10 ounces in the next ten years and forever. The only thing that changes is the gold value and this is fiat problem. One bitcoin remains as one bitcoin in your wallet, the only thing that changes is the dollar value. No one issue gold, it has no issuer risk and it is not a liability to anyone.
Gold Is Not Digital
The best insurance against the risk of digital currencies is gold, it is physical, not in digital form. In reality, most part of the dollars that you spend is in digital form. It is no longer news that the amount of digital dollars in circulation is more than physical cash. Banks are always hoping that all customers do not come to them to withdraw their physical cash at the same time.
As long as the amount of paper money is enough to fuel settlement, there will be no problem. The moment that panic is triggered, we will come to the realization that banks lack enough paper money to pay all her depositors. Typical examples of countries that recently experienced cash drought are Greece and Cyprus, the government could reprogram the ATM and reduce daily withdrawal limit, you could have $1,000,000 in your account, but it is irrelevant at this moment of crisis.
What is the safety net? Citizens should save money in physical gold as insurance against a similar crisis in the future.
You may want to read more on why gold should be part of your portfolios, securing your wealth is a top priority in the new world. Learn more here;
Posted from my blog with SteemPress : https://kowaste.com/understanding-role-of-gold-bitcoin-and-fiat-in-world-monetary-policy/gold-is-money/