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Thursday, October 31, 2019


Gold is here to stay.  Block Chain currencies though in it's infancy is also here to stay

But they serve completely diametrically opposite functions.

Bitcoin is a gambling vehicle.  It is more akin to Fantasy Football or Black Jack than it is to gold.

The thing about gambling is that it is a completely unproductive use of capital. 

Someone gets rich Someone gets poor.  Zero Sum.  There is no multiplier
effect.   Money gets transferred. Those who get rich just turn the money over
back into the gambling complex. Because gambling is an addictive illness.
Gamblers use profits to Gamble.

This is highly deflationary as productive capital is sucked out of the economy.

Gold on the other hand is like stored energy.  It is a stable store of money that is not likely
to make many people rich but over time it holds its value as Gambling Instruments become
overvalued and crash.

Crashes come periodically.  The last one was only 12 years ago. It was bailed out in the most
temporary fashion by transferring trillions from tax payers to the banks,

It seems unlikely the Government will be able to do that again without a vicious

After a crash the capital stored in gold, can be reconverted and employed back in the
real economy.

When the economy crashes Block Chain currencies can easily be shutdown.
Just pull the plug.

Gold can aslo be outlawed. But if it's hidden in a hole in your yard it's not likely
anyone will be able to take it away from you.

When order is restored it's unlikely anyone will want to.  There will be other priorities.

The tangible nature of gold though viewed as antiquated by block chain
enthusiasts, is exactly what protects it in a crash.