514 sats \ 4 replies \ @HardRich 16 Nov 2023 \ on: Gold Will Be Physical Cash in a Hyperbitcoinized World bitcoin
Very interesting! I might have to buy some of those just because I like the idea. My main concerns would be counterfeiting and making sure the company doesn't dilute the gold with copper or something like coins in Roman times. I also wonder if repeated handling of the bills would make any of the gold flake off? This is weird, but it kind of looks like you can't fold the bills - not sure if that's a big deal but might make it harder to fit in a pocket?
Bitcoin still has more advantages in my mind, though: (1) bitcoin is so easy to verify, (2) bitcoin isn't produced by a single company, (3) easier to be exact and not need change, (4) probably more people accept bitcoin vs Goldbacks, (5) bitcoin's fixed supply, (6) can buy online products with bitcoin but not Goldbacks, (7) etc.
I think I've heard of some tech that might allow people to use Bitcoin Lightning without internet. In that case, the only real hurdle would be for everyone to have a smart device - which I think you can get for nearly free these days?
Goldbacks would probably win the day if we had a world wide EMP go off and bitcoin stopped working. If we have a world were internet is missing then I'd prefer Goldbacks over gold coins. I think Goldbacks might be fun to own (a small amount) but my networth would primarily be in bitcoin.
I think there's a very real demand for physical media that bitcoiners have a hard time appreciating. There are people who just trust it more, because it's in their hand rather than being a digital abstraction. It's more clearly anonymous, too, for people who don't want to leave a record of their transactions. It's still available during natural disasters when the power goes out and networks go down.
I know bitcoiners have answers to all these points, but that isn't my point. My point is just that there will continue to be people with a preference for physical media and gold is the obvious candidate to fill that role, so there will be physical media even in a bitcoin world.
reply
Agree -- there's an entirely different neural machinery pertaining to concrete things vs abstract things. I believe it to be consequential. Even if btc proves overwhelmingly successful in the coming years, it will be in spite of this difference, but because there is no difference.
Kind of what this comment was meant to get at.
reply
One of the interesting points Austrians make about money, is that better moneys drive out worse moneys. I've seen them argue that ultimately there will be one money that is used for all transactions, because that best/true money will be the best medium of exchange and store of value and unit of account.
This thread made me think about that argument and wonder if it overlooked the possibility of different moneys having different comparative advantages. I'd have to give it more thought, but I suspect that either gold or bitcoin would have to evolve or another money will arise that suits both purposes.
reply
Same, and exactly my thoughts. Bitcoin is hands down a better form of money than gold, gold simply has a benefits in a few areas that make it very useful. I'm considering getting some of the Goldbacks as well, although I haven't yet so I can't personally vouch for how effective using them is.
reply