Survive-it: Bitcoin vs. Gold in today's world; part 1
Your life and everyone's life depends on real money. Do you know what it is?
Survive-it: Bitcoin vs. Gold in today's world; part 1 May 18th 2017
I have asked this question countless times. The answer I found to be dependent on the current status of your nation and technology your living in. But maybe most important is the time you live in (explained further in pt2, which no one really has). We all are on our devices to read this so I assume we have not crashed as a society or the world electronic grid is still up and running. In order to understand the difference, let me teach you the 'true' meaning of 'Money' or 'Currency' that is hidden from you. Awaken padawan!
- It has to be Scarce
- It must be Fungible
- It must be Divisible
- It must be Durable
- It must be Transferable
Scarcity- Gold and Bitcoin has a finite amount. Unlike the printing press that can print unlimited amount of fiat, there is only a certain amount of Gold in the world, ever. We still mine for it but less and less mines are being developed and it takes years to retrieve it from a rich source. Bitcoin has only 21 million that can ever be mined.
Fungible- This states that all parts of the object is the same. Meaning a bar of gold can be halved and it doesn't matter which side you have. Or one Bitcoin is the same as the other Bitcoin. What's the difference in the real world? Well if we agreed to use a cow as currency and it gets halved in sideways, well maybe the head side is worth more the butt side. Depends if you like butts more I guess.
Divisibility- Gold has been used for thousands of years. It has been able to be divided from a large bar to a gram. Bitcoin can be divided the same into portions called Satoshi, perhaps even smaller I bet in the near future. Again the object stays the same regardless.
Durability- Ever hear of pirates or raiding armies saying, 'Let us go pillage the nation for their stacks of printed paper!' No, me either. It's because precious metals have withstood time, weather and the intense fabric of creation in the universe itself. Thus why it's here. Bitcoin, well it is still new but as long as the network is alive and up it is very difficult to destroy. The internet would have to be destroyed. (Knock on wood)
Transferable- I can pass a Gold coin to you not only in person but through snail mail, courier, pony express, titanic (gulp) or even banking institutions. Bitcoin is fast and furious as you can send one or ka-billions in an instant. Try sending a wagon full of salt. Yes salt was used for currency once.
So you see this compares the two in today's world. In my next article I will describe how these hold up in a SHTF scenario and then a TEOTWAWKI scenario. 
JP Chant over and out.
In my opinion Bitcoin will fail. Can you trust a currency that is reliant on vulnerable technology?? With the creation of a number of new competing cryptocurrencies being developed and eventually diluting the market. If a cyber attack occurred would your Bitcoin be safe. Would you intrust thousands of dollars to the system? How long before Government infiltrate this technology and causes it to fail? Why would Government do that? Because central banks will not tolerate a currency that they do not have complete control over, thats why. If they cause a failure in the system, then people will lose confidence in them, unless of course the federal government comes to the rescue and offers to insure the currency FDICA baby. Look what they did to Precious metals. The feds found a way to manipulate it and fix it. The banks simply print and sell enough paper contracts to dilute the market. Some say that there are up to 200 hundred paper contracts per ounce of gold. The silver and gold markets are easily moved by the simple push of a computer key. They must regulate it in order to keep the value of the dollar intact. The same is true with cryto. If they let the market run, paper currencies would diminish in value. Is it possible that the cryptocurrency was ordained by the central banks as a trail to see if people would buy into this type of monetary system? But for now enjoy the wealth it has created, just don't think they will let the party continue.