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Bitcoin May Be the New Gold
Townhall.com ^ | January 30, 2021 | Young voices contributors

Posted on 01/30/2021 4:35:29 AM PST by Kaslin

Editor's note: This column was authored by Emilie Dye. 

Last January, you could buy a bitcoin for less than $9,000 — that's roughly the downpayment on a 2018 Ford F-150. Today, it costs around $37,000 — that's almost enough to buy the truck outright. 

Much of bitcoin’s recent popularity is a product of the times. In 2020, governments around the world spent tax dollars like teenagers throwing around their dads’ credit cards. It’s not surprising that many now wonder if maybe we shouldn’t trust the government to be the guardian of the money supply. 

Bitcoin is an entirely digital currency which uses blockchain technology to make and verify transactions. Think of blockchain as essentially a ledger or record of all transactions made with each unit of the currency. Each bitcoin is a computer file with a history of all transactions back to the very first one made on the genius block. 

No different from the dollar, bitcoins are valuable because we believe they are valuable. We trust that we can exchange a bitcoin, or a dollar, for certain goods, services, or other currencies. 

But unlike the US dollar, bitcoin’s value isn’t determined by governments, and the money supply cannot change. There will never be more than 21 million bitcoins. The founder and originator, Satoshi Nakamoto, remains anonymous. Giving true transparency, the software running the blockchain is open source (anyone can see the code and add to it) and all changes are made by a rough consensus of the developers. But ultimately users must consent to any change in the code.

Throughout the COVID-19 crisis, governments around the world have been reacting. They have cut interest rates and pumped money into the economy through both monetary and fiscal stimulus. While at the moment we are worried about businesses closing and people losing their jobs, inflation is a real threat in 2021. 

We are already seeing it in some markets. For example, look at cars again: This time last year I bought a 2002 Mazda MX-5 for $7,500. A quick perusal of used car sites shows that same car is now selling between $14,000 and $16,000. Granted, I’m from Australia and the Australian used car market is hardly a universal measurement, but still it’s concerning that my dollar is worth less of a Mazda than it was last year. 

Once our lives finally get back to something that can be called “normal,” many of us will start spending. Those who kept their jobs during this crisis have likely seen their bank accounts grow with restaurants closed and travel restricted. When the flood gates open people are going to want to spend and enjoy life without lockdowns. The increased demand will inevitably lead to an increase in prices. 

When the U.S. dollar becomes less reliable, people understandably want their savings in more tangible assets. In the past, when people flocked to safety they bought gold and other precious metals. But in this digital age, bitcoin is the new gold.

Still skeptical? Look at Venezuela: Venezuelans facing extreme hyperinflation picked up bitcoin as a currency. According to coindesk, “expats use bitcoin to send remittances back home, where locals convert it to bolivars to buy food and pay bills.” Venezuela now has a thriving peer to peer bitcoin network as a result of government instability and inflation.

The United States is not facing inflation anything like that which infected Venezuela. However, U.S. debt is now at $26.7 trillion — that’s $81,353 per American. That along with high levels of coronavirus spending should give Americans ample reason to worry about their savings and to diversify into other assets.

If the U.S. cannot pay back its debt the value of the dollar will drop. We can’t quantitatively ease ourselves into prosperity and any attempt to do so devalues our dollar. 

Bitcoin is a currency immune to political whims. Anyone looking to protect their savings and to diversify their assets should consider jumping on the bitcoin bandwagon instead of relying solely on money managed by a central government.


TOPICS: Business/Economy; Culture/Society
KEYWORDS: bigtech; bitcoin
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To: teeman8r

keep telling yourself that

of course, crypto currencies aren’t a ponzi scheme. if you think they are, you have no idea what a ponzi scheme is.

cryptos are more reliable money and closer to everyone trading gold than the cute pieces of paper w/ the magic scribbles you have in your pocket


21 posted on 01/30/2021 5:26:31 AM PST by sten (fighting tyranny never goes out of style )
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To: Kaslin

Satoshi Nakamoto, remains anonymous.

Not true. The inventor’s story is out and a facinating read. He details how he came up with that name.


22 posted on 01/30/2021 5:32:25 AM PST by BiglyCommentary
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To: Kaslin

And when the grid goes down or is locked??


23 posted on 01/30/2021 5:56:54 AM PST by lakeman (Semper Fi)
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To: Kaslin

Sad to say I did not accumulate any Bitcoin back when my Grandson was educating me on it at a time it was under $100. I was of the opinion that it was a modern day tulip mania. He is
a multi-millionaire in his early 30s now. Now that even banks, insurance companies, pension systems, etc. Are getting in and helicopter money is flying around..., Owning a little crypto is good insurance!


24 posted on 01/30/2021 5:58:07 AM PST by ExSES (the "bottomhttps://youtu.be/ycrqXJYf1SU-line")
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To: Kaslin

Count me out of the Bitcoin rush. It might very well be successful. However, even if it is, the government will either take it over, or replace it with a mandatory government run “equivalence”. Neither gives me any confidence in Bitcoin (nor the government, for that matter).


25 posted on 01/30/2021 5:59:38 AM PST by norwaypinesavage (The stone age didn't end because we ran out of stones.)
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To: lakeman

When other crypto currencies that are better designed come into wide use, bitcoins will be worthless, not worth the bits they are printed on.


26 posted on 01/30/2021 6:00:25 AM PST by BiglyCommentary
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To: BiglyCommentary

Interesting point. Life on the internet can be fleeting. AOL, Facetime, etc.


27 posted on 01/30/2021 6:03:28 AM PST by 21twelve (Ever Vigilant. Never Fearful!)
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To: norwaypinesavage

Bitcoin is nothing more than a greater fool mania on steroids. They are the ultimate fiat currency.


28 posted on 01/30/2021 6:04:08 AM PST by BiglyCommentary
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To: 21twelve

Bitcoins will be the MySpace of crypto.


29 posted on 01/30/2021 6:05:29 AM PST by BiglyCommentary
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To: Kaslin

No, no it’s not. It has zero intrinsic value. Gold at the very least can be used as a paperweight or doorstop. Bitcoin does not exist. Bitcoin can go to zero. Gold will never be worthless. Anytime they want the corrupt governments of the world can shut down bitcoin.


30 posted on 01/30/2021 6:08:40 AM PST by wny
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To: Kaslin
Bitcoin is like buying air and somehow trusting that it will go up in value.

When it collapses, and one strongly suspects that it will, many nice, however foolish peeps will be ruined

31 posted on 01/30/2021 6:17:04 AM PST by Seaplaner
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To: Kaslin

I mine etherum with three mining rigs producing just over one Eth coin in 18 days. In November one Eth was worth $800. Yesterday the same coin was worth $1,837. The value of the coins I produced last April was around $100-140... today it is under $1,400 and yesterdays coin that was $1,8xx is now just under $1,400. I have been mining since 2017 and have produced over 50 coins, mostly Etherum.

The thing about this is that it really is an effective measure of value. All of the banks are purchasing Etherum and Bitcoin. The investment companies are buying it and they are issuing projections for Bitcoin to hit $210-270,000 USD in the next 12-15 months.

A stolen election has consequences. The destruction of trust in the USA as an agent of good and a government that was trustworthy is over. There can never be another real election in the USA after the Biden Coup.

The great reset requires bailing out the EU Central Bank moving finances there back into the national banks. All the world currencies will have a “reset” value and each Bloc of currency like the financial sphere of the USD, the Pound, the Euro, Rubble or Yuan will gobble up the surrounding nation states thru their debt and loans.

We are going to see the issuance of THE AMERICAN DOLLAR replacing the USD and it will be used from North to South Americas.

The value of US DOLLARS will become nothing so piles of cash will be worth nothing when the new America’s Dollar is issued so moving into “coin” will force major investment firms, criminals, banks, governments to further purchase Bitcoin driving up the price.

Welcome to US Socialism and one Party Rule. Our debt crisis is undeniable now that votes mean nothing and the natural law of currencies valuations will kill the major fiat currencies.

I think everyone here should buy Etherum or Bitcoin now.


32 posted on 01/30/2021 6:19:13 AM PST by Jumper
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To: Kaslin

Hi.

A world wide web blackout will be a problem for blockchain.

5.56mm


33 posted on 01/30/2021 6:19:17 AM PST by M Kehoe (Quid Pro Joe and the Ho ain't my president.)
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To: Seaplaner

Bitcoin is like buying air and somehow trusting that it will go up in value.
When it collapses, and one strongly suspects that it will, many nice, however foolish peeps will be ruined


I am not sure there is any safe harbor. Been Thinking a lot. Never invest in anything you don’t understand, instead, buy a lottery ticket.

By the way, how are lottery tickets doing? don’t see the ads anymore.


34 posted on 01/30/2021 6:31:04 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: Jumper

I recall my World History teacher talking about how in Germany, WWI (II???) they would bring a wheel barrow full of cash to buy a loaf of bread. Somebody would steal the wheel barrow and leave the cash for a faster get-away!


35 posted on 01/30/2021 6:51:40 AM PST by 21twelve (Ever Vigilant. Never Fearful!)
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To: Kaslin

Someone told me about bitcoin 10 years ago. I tried to set up a bitcoin account but it was such a faff I gave up.

I’d have been a mutlimillionaire by now if I had persisted. Gutted.


36 posted on 01/30/2021 6:53:21 AM PST by sinsofsolarempirefan
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To: Seaplaner

The value of bitcoin is it is a medium of exchange that is beyond the control of governments and hedge funds.

In that sense, it has just as much intrinsic value as gold, which apart from a few industrial applications in small amounts has no real practical value that would otherwise justify its high price.


37 posted on 01/30/2021 6:55:36 AM PST by sinsofsolarempirefan
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To: wny

“Gold can at the very least be used as a paperweight or door stop” And that justifies the otherwise ridiculous price of gold? The price of gold is far beyond its actual practical usefulness.

Unless you are expecting civilisation to collapse entirely, its not that much better as an investment or store of value.


38 posted on 01/30/2021 6:58:34 AM PST by sinsofsolarempirefan
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To: Kaslin

Unlike US dollars, Euros, or China’s Yuan Renminbi, the number of bitcoins is strictly limited. As long as sufficient people agree that bitcoin is money (and the number of such people seems to be growing), the value of a bitcoin is very likely to gain in value against the dollar, Euro, or Renminbi. The only way the central banks can compete with bitcoin is with a gold or other commodity backed currency, and that would subject them to that which they hate the most, discipline in creating currency.


39 posted on 01/30/2021 7:04:56 AM PST by devere
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To: jdsteel

It’s fashionable to ignore the underlying value of things.

“ No different from the dollar, bitcoins are valuable because we believe they are valuable.”

The full faith & credit of America and used electricity are the same? I think not.

LOL.
I have more faith in electricity then our Regime.


40 posted on 01/30/2021 7:11:32 AM PST by Kozak (The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.)
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