Kruggarbits A Gold Play For The Satoshi
137 sats \ 1 comment \ @TheBTCManual 22 Jul 2022 bitcoin
In my native country of South Africa, our local currency is known as the Rand, we were previously on the British Pound, as my Gran often reminds me and since we've moved over to our own currency it's been a rapid decline in value since 1961 when it was launched.
To give people an option to get out of debasement, gold has always been popular but as it's weight limitation kept increasing in Rand terms, it continued to price people out of buying one. Then we got Krugarrands which is a gold or silver coin people could purchase to hold value.
It's been reasonably popular as an investment and a downpayment for "labola" and other family savings mechanisms that don't require third-party custody.
But as these coins start to increase in price and wages are flat, people are starting to be priced out of this range too and now companies are looking to tokenise the krugarrand so you can buy small portions of it and once you reach a whole one you could swap the tokens for self custody
Now any bitcoiner can see a backed token has its issues and tokenising it doesn't remove 3rd party risk, but my thinking is aren't these convoluted products all trying to re-invent what the satoshi is already servicing?
Fractional wealth?
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0 sats \ 0 replies \ @KenyaCoin 22 Jul 2022
There's a difference between an investment in gold coinage which has value as a commodity and an investment in gold coinage for their numismatic value (i.e., as a collectible).
What bitcoin provides is a way to truly own that value by controlling the keys, just as a gold coin provides when you physically hold it yourself. Unlike with the gold, bitcoin is still practical even when held at even relatively small values. There's no way to spend $20 worth of your gold coin, but spending $20 worth of your bitcoin stash is possible (though on-chain fees will sometimes make smaller transactions less economic, but there are L2 solutions like Lightning network to help with that).
Fractional ownership of property controlled by a third party is one approach. Sometimes it makes sense ... equity in a company. Sometimes it doesn't ... such as this numismatic Krugarrand token thingy you shared.
But some investments are made for various reasons.
Art, for example. Ask five people why they invest in art and you'll get five different reasons.
Or this type of investment: https://livestockwealth.com
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