Currency is off the gold standard. USA holds 200,000 BTC. Granted, it's not a huge holding relative to all the money in circulation, but clearly USA holds BTC.
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Cryptocurrency reality
- Thread starter scoot
- Start date
When we gonna start the Bobcoin?
I would add that until it becomes backed by the FDIC, it is vulnerable to a “bank run“ not unlike those that were seen in 1929 before federal insurance on bank deposits was created in the 1930s.
If you wanted you could always convert your crypto to USD, the only variable would be the value. It not like there is a guy at a window taking your crypto and handing you USD.
Gold has been money for thousands of years. Its rare, and you can not print it. Gold and Bitcoin share a lot of attributes. But in the end you are correct, the only reason they have value is people have decided they do. US dollars only have value for the exact same reason.
I like Gold. I don't dislike bitcoin, but I do not own any. I own US dollars because I have to. I prefer all of them to a Venezuelan Bolivar or Turkish Lira.
This is a key concept to understand.
Tell me about the time man forgot the value of gold.
Once upon a time there was a man on a deserted desert island....
Who would not trade his only fishing net for any number of funny looking yellow rocks.
Yeah and if he is rescued he will be bringing the gold with.
I bought some at my oldest's recommendation, put a small amount in, $600, in 2022 and I have let it sit. I have watched go down to <$200 and back over $1100. I'm not going to touch it for some time and see what happens; I doubt I'll get rich, but if it makes gains, great. If not, I am not out much.
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GON
$150 Site Donor 2025
A few posts in this thread suggest gold doesn't have real physical value.
In the late 1980s I had a gold crown installed on a rear tooth. The gold crown to this day is performing fantastic. Dentist often comment about how nice having a good tooth is.
In 2005 I had six front teeth shattered. The shattered teeth were replaced by porcelain crowns. The porcelain crowns were reported to have a life expectancy of ten years. The porcelain crowns lasted 18 years, I had them replaced two years ago.
Moral of the story, gold has real world value beyond gold coins, and jewelery.
In the late 1980s I had a gold crown installed on a rear tooth. The gold crown to this day is performing fantastic. Dentist often comment about how nice having a good tooth is.
In 2005 I had six front teeth shattered. The shattered teeth were replaced by porcelain crowns. The porcelain crowns were reported to have a life expectancy of ten years. The porcelain crowns lasted 18 years, I had them replaced two years ago.
Moral of the story, gold has real world value beyond gold coins, and jewelery.
So far no one has named a recorded history when gold had no value.
Metals are important to mankind doesn’t need to be stated
Metals are important to mankind doesn’t need to be stated
Could get you 10 years in prison and $10K fine for owning gold coins from 1933 to 1974.
Oddly, that suck period of history gold still had value.Could get you 10 years in prison and $10K fine for owning gold coins from 1933 to 1974.
I still don't even know how that was a legitimate law in the USA.
It was not possibly legal given the constitution specifically states that money is only to be coined with gold or silver. "Life, liberty and property".
However I point it out here because this is a crypto thread, and one of the negatives of gold is that you have to physically secure it. That was "supposedly" one of the benefits of bitcoin - easier to store.
I agree with your notion however. Gold has been money for as long as we have records of money existing. If your great grandfather had hidden an ounce coin from Roosevelt in 1933, he would have made about 5% per year compounded since at current levels, which is well above inflation.
A little bit of history: When FDR took office in 1933 papers dollars were required to be 40% backed by gold in the treasury. Also at that time, people were hanging onto $20 gold pieces as an honest way to save and be prepared for emergencies. FDR wanted to expand the money supply but had hit the limit based on the amount of gold held by the government. The government decided people were unreasonably hoarding gold.
The problem (for FDR) was solved by signing an executive order* making holding gold in excess of $100 value, or 5 ounces, illegal. There were long lines at the banks because you had to turn your gold in by May 1, 1933 to avoid persecution. You got $ 20.67 per ounce of gold surrendered. Now more money could be printed.
In 1934, Congress went a stop farther and raised the official price of gold to $ 35 per ounce. This meant, under the 40% law, even more dollars could be printed. This also overvalued gold in relation to the dollar and made gold mining quite profitable. People made a good living mining gold during the Depression until gold mining was outlawed in 1942 to get miners to concentrate on strategic metals.
*The executive order signed by FDR was not legal or lawful, but that was corrected when Congress passed the Gold Reserve Act of 1934.
Satoshi Nakamoto holds 82.78B (yes that's a Billion) USD worth of bitcoin not circulating today. If one day he or his heirs decided to start selling it the market value of today's bitcoin can crash big.
Whoever he is, is either dead or a government of some sort.
When they were brainwashed by a cult.
