stored value

What can Bitcoin learn from Gold's survival as a stored value instrument?


he greatest heist of the century was pulled off by central bankers when they managed to conflate the price of futures contracts on gold with the price of physical bullion

in the public eye, the “spot” price on gold is what the metal is worth, however, futures contracts are manufactured out of thin air and are rarely delivered, instead getting settled for cash

the net effect has been one which many refer to as the gold suppression scheme i.e. that by being able to create supply on demand, central bankers have maintained precious metals prices artificially low, in essence practically eliminating public interest in it

bitcoin could thus learn this valuable lesson and ensure that its audience understands clearly that the value of the coin is in holding it. buying interest in derivatives like ETFs is not the same and should not be regarded as the same

so long as stakeholders keep their coins in their possession, borrowing them (as is done by brokerage houses with stocks) to allow short positions will remain marginal and the ability of any powerful player to suppress bitcoin prices minimal

thanks for the chance to answer your excellent question

Eric Calder