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79 sats \ 9 replies \ @freetx 17 Mar \ parent \ on: Why Does El Salvador Hold $86M of Gold? bitcoin
What happens if ES is hit by massive EMP strike that wipes out all electrical infrastructure?
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Now extend that idea, its not a targeted EMP attack specific to El Salvador, rather its the results of worldwide event because of world war, asteroid hit, solar activity, etc...
So now there is no "lets rebuild" because there is no one to supply the materials to rebuild....all nations are on their own.
Being a responsible leader means hedging your society against unlikely, but possible catastrophe.
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An EMP hit will be the equivalent of a reboot back to 1700's. Would you consider a country halving gold in 1700 a required attribute for future development?
Not having any gold will only make their situation worse as it will delay jump starting the economy with a solid monetary base.
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i wouldn’t say gold is a required attribute for future development.
the world would temporarily revert to the 1700s without electricity, but the world would not lose its collective understanding that Bitcoin (or something like it) is a better way to store value than gold.
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Gold would be necessary to "bridge the gap".
When you were in the multi-decade stage of having no electricity, no computers, no chip fabs....you would need something as a monetary base to facilitate trade to actually build those things.
What would you suggest they use?
In particular, if you are an autocratic leader who may need to run away one day :)
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Who was his predecessor ?
Was his predecessor less authoritarian?
If he escaped to USA, would you deny entry?