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20 sats \ 0 replies \ @orthwyrm 10 Jul 2023
"This is good for Bitcoin."
A gold-backed BRICS currency is unlikely to be adopted. And yet it will succeed in sparking a public conversation on what, if anything, backs the USD.
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20 sats \ 1 reply \ @JesseJames 10 Jul 2023
Yes it will. First gold and then they will add Bitcoin, they will probably co-exist, at least I hope so. Sadly USD paper money lost its value, only the name will stand during the transition. We did this to ourselves. We brew this beer, now we will have to drink it...
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0 sats \ 0 replies \ @siggy47 OP 10 Jul 2023
As I said elsewhere, western banks backed by US gov will fight to suppress gold price through "paper" futures, options, and etfs. They have unlimited fiat ammo. If I'm wrong, that will be great for bitcoin's fiat price against usd. Whether that will even matter in the future remains to be seen.
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0 sats \ 0 replies \ @mrtali 10 Jul 2023
It's just a desperate try.
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0 sats \ 6 replies \ @jgbtc 10 Jul 2023
I have a hard time believing these countries (or any others) can stick to a gold standard for long. Too much political pressure to print. I trust them only to the degree that their supplies are auditable.
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1 sat \ 5 replies \ @siggy47 OP 10 Jul 2023
Me too. That's why the devil is in the details. If this currency is not immediately convertible to gold on demand, and instead there's some suspect audit system, it's meaningless.
On the other hand, if it is convertible, that's the end of the US dollar.
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20 sats \ 0 replies \ @nkmg1c_ventures 10 Jul 2023
There will likely be a special "window" for nation states to redeem their physical gold at least for a time, otherwise there's no point and it's indistinguishable from current fiat/debt/oil/military backed money
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20 sats \ 3 replies \ @jgbtc 10 Jul 2023
Probably will be convertible... until it isn't. People will undoubtedly fall for it. 1971 all over again. If they include bitcoin it will be interesting otherwise it's a complete joke. I think there is a small chance it will, especially with all the recent etf news, seems like a possibility. Fink probably has some inside info.
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11 sats \ 2 replies \ @siggy47 OP 10 Jul 2023
You and I are obviously just speculating here, but if it's convertible for even a short time it will do substantial damage to the dollar. Russia, China, and Iran are really in an economic war with the US, and this would be the nuclear option. Last time this happened in Libya with Gaddafi just threatening a gold backed Africa coin, he wound up dead and the country is still a mess. The US would make it kinetic, I fear.
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40 sats \ 1 reply \ @nkmg1c_ventures 10 Jul 2023
Yeah people always seem to forget that Gaddafi was knifed in the ass for pretty much daring only to do this. The rest of his misdeeds were all entirely forgivable. Kind of telling that one of the first things the "rebels" wanted was a central bank system friendly to the West.
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11 sats \ 0 replies \ @siggy47 OP 10 Jul 2023
Exactly
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