The Gold backed dollar is just another fictitious piece of paper backed by another not limited supply of shiny stuff with arbitrary value.
Bitcoin does it better.
Actual limited supply with a DIMINISHING incoming allocation of that supply every 4 years (the halvening) INCREASING it's liquid scarcity.
Distributed accounting so extremely difficult to have any authority confiscate your record of value.
Backed by the actual cost of energy and equipment needed to profitably maintain the system through mining. (most people don't understand this point)
Now this is similar to a gold backed dollar which in the end is completely valued by the energy and equipment it takes to pull new gold out of the ground just like Bitcoin is valued by the energy and equipment it takes to mine new bitcoin (after all that's also the only reason Gold is valuable)
The difference is Bitcoin has an absolute scarcity limit of 21 million and gold will always continue to have a new supply and the new supply mined every year can drastically increase as new deposits or methods of extraction are devised which lowers the value of the gold already mined.
But Bitcoin will always experience a new supply division by 2 every 4 years.(In fact MASSIVE fraudulent discoveries of new gold deposits are declared all the time lowering the value of gold which can NEVER happen with Bitcoin.)
A gold back dollar can still be confiscated by authorities. Your dollars are still going to be dots in a bank in a computer system that are not under your control. The bank will be able to tell you when and how much you can take out at any given time and will be able to seize your assets anytime they want.
The government can always change its mind and go back off the gold back dollar just like Nixon did in the seventies.
None of those things can happen with bitcoin.
When you truly understand Bitcoin you realize Bitcoin is the ideal gold backed dollar and it's even better.
No your gold backed dollar computer dots are not more real or more valuable than Bitcoin computer dots.
Remember when people say that once again that bitcoin has "crashed" that we are talking about something that was equal to pennies having gone through multiple awareness and adoption cycles through huge public scrutiny that is now worth $20,000. And another increase in scarcity is upon us with the next 4 year halvening to occur about 1 year from now.
In a sense, it is true. It is backed by equipment and energy costs, today. (Meaning, the winner would be whoever has the most access to energy. Who do you suppose that will be? Mega corporations and governments?)
But it's also backed by current security methods Meaning it relies on the improbably of cracking, not just the algorithm, but the improbability of somebody gaining access to wallets using somebody else's credentials. Or by hacking the bitcoin exchange ala Equifax data breech.
And it's also backed by hoping no government criminalizes it. So it's backed by law paper. Meaning if Feds raid Mt Gox and take your money then you're SOL.
If you are the 95% of Chinese who stopped using bitcoin after China made it illegal then you're also SOL.
If internet goes out like it did in Iran during "revolutions" Then you're SOL.
So if you think about it. It is backed by a lot of vulnerabilities.
it's backed by decisions such as the one made by China.
It's backed by internet access like in Iran.
It's backed by decisions such as the ones made by the feds before they raided and shut down several bitcoin exchanges.
It's backed by traditional security teams who host username/password info like Equifax.
And, yes, it's also backed by energy with a massive 21 million inflation cap which required energy/machines to operate. But that's the least interesting.
Add:
Gold on the other hand, has to be raided house by house.
Criminalization of hoarding gold has a much lower compliance rate.
Gold cannot be taken electronically by a hacker with credentials.
Gold doesn't care if the lights go out.
Gold doesn't care if internet goes out.
Gold is also backed by "energy" , meaning the expense and machinery to get it out of the ground.
Gold is accepted everywhere and can't be faked without harnessing forces of nature and waiting millions of years.
In a shtf situation, people liquidate bitcoin first because it's the least useful.
In a shtf situation nobody will need to make purchases of "solving algorithms." People will need food, water. Not conducting purchases with something you need to login to access.
I have a lot of things that I can say about this subject, but I have to go to work early today because my boss's vaxxed wife had a stroke last week. I'll probably be back later.
They say the jews made it. My argument is when in the history of the world have jews open sourced anything especially something they don't have control over. Maybe the jews did make it but it doesn't make sense when the jews run the banks and btc was made to allow people the ability to 'bank' without banks.
People who haven't gotten in yet want to think it's a scam because they know they're missing the opportunity of a lifetime. They want to hope it's over and they want to hope it all crashes and all the billions and millions and trillions of people have made by early investing in Bitcoin all go away so they get their revenge. But the truth is in all likelihood Bitcoin will continue to rise for this foreseeable future at a rate every four years it is probably unmatched by anything. In fact I don't think Tesla can continue it's rise because there is a finite limit to manufacturing ability and the adoption of electric cars although arguably their robot business might take them beyond that.
[ + ] observation1
[ - ] observation1 3 points 2.5 yearsNov 7, 2022 08:56:24 ago (+3/-0)*
In a sense, it is true.
It is backed by equipment and energy costs, today. (Meaning, the winner would be whoever has the most access to energy. Who do you suppose that will be? Mega corporations and governments?)
But it's also backed by current security methods Meaning it relies on the improbably of cracking, not just the algorithm, but the improbability of somebody gaining access to wallets using somebody else's credentials. Or by hacking the bitcoin exchange ala Equifax data breech.
And it's also backed by hoping no government criminalizes it. So it's backed by law paper. Meaning if Feds raid Mt Gox and take your money then you're SOL.
If you are the 95% of Chinese who stopped using bitcoin after China made it illegal then you're also SOL.
If internet goes out like it did in Iran during "revolutions" Then you're SOL.
So if you think about it. It is backed by a lot of vulnerabilities.
it's backed by decisions such as the one made by China.
It's backed by internet access like in Iran.
It's backed by decisions such as the ones made by the feds before they raided and shut down several bitcoin exchanges.
It's backed by traditional security teams who host username/password info like Equifax.
And, yes, it's also backed by energy with a massive 21 million inflation cap which required energy/machines to operate. But that's the least interesting.
Add:
Gold on the other hand, has to be raided house by house.
Criminalization of hoarding gold has a much lower compliance rate.
Gold cannot be taken electronically by a hacker with credentials.
Gold doesn't care if the lights go out.
Gold doesn't care if internet goes out.
Gold is also backed by "energy" , meaning the expense and machinery to get it out of the ground.
Gold is accepted everywhere and can't be faked without harnessing forces of nature and waiting millions of years.
In a shtf situation, people liquidate bitcoin first because it's the least useful.
In a shtf situation nobody will need to make purchases of "solving algorithms." People will need food, water. Not conducting purchases with something you need to login to access.
Physical gold is king. BTC doesn't exist.
[ + ] FacelessOne
[ - ] FacelessOne 2 points 2.5 yearsNov 7, 2022 09:43:48 ago (+2/-0)
[ + ] AlexanderMorose13
[ - ] AlexanderMorose13 2 points 2.5 yearsNov 7, 2022 09:16:22 ago (+2/-0)
[ + ] FacelessOne
[ - ] FacelessOne 0 points 2.5 yearsNov 7, 2022 09:38:44 ago (+0/-0)
[ + ] rhy
[ - ] rhy 0 points 2.5 yearsNov 7, 2022 05:28:21 ago (+1/-1)
[ + ] Monica
[ - ] Monica 3 points 2.5 yearsNov 7, 2022 05:39:29 ago (+3/-0)
[ + ] Crackinjokes
[ - ] Crackinjokes [op] 0 points 2.5 yearsNov 7, 2022 06:08:17 ago (+1/-1)