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Monday, August 17, 2020

Why Digital Currency and Block Chain will send the price of gold soaring.

 

Bitcoin Vs. Gold: Whose Future Looks More Promising?

There's this idea floating around the digitization is the enemy of physical gold.  The argument runs that "innovations" such as block chain technology and the move to global digital currency will undermine the value of holding physical gold.  Physical gold is a relic from another era, the argument runs.

The problem with this argument is that the very technological breakthroughs that enable the inventions of things like Block Chain and digital currency will soon undermine their viability.

How so?

Well the next innovation which is a year away, two years away, five years away. depending on who you ask, but is coming as sure as the sun will rise, is Quantum Computing.  The upshot is that with a Quantum Computer every single existing Digital Currency, including block chain, including the most sophisticated .online banking and trading programs will be able to be hacked in minutes.

Nothing Digital is safe.  All forms of digital transaction will have to be secured through in person verification otherwise nothing will be secure.

But won't there be some sort of Quantum Currency?  Would you bet your life savings that whatever it is won't be hackable by Quantum Computing 2/0?

Which leads us all the way back to physical gold and silver as the only secure store of value.

As the French say: The more things change, the more they stay the same.



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