8 votes

Gold vs. Bitcoin - Which is better in a financial crisis?

What do you guys think?

Gold has been considered money for centuries; although, FED chairman Ben Bernanke would disagree. In his now infamous answer to former Congressman Ron Paul's question: "Do you think gold is money?" Bernanke had a very puzzled look on his face when posed with such a straight forward question. His answer was an emphatic "No". If you understood the position of the Federal Reserve Bank, you'd understand why such a question is a double-edged sword. The lifeblood of the Federal Reserve Bank is DEBT, and to them, anything other than debt is one more nail in their monopoly coffin.

Ron Paul followed up with the question: "Why do central banks hold it (gold)?". Bernanke's response: "It's a form of reserves, its tradition". The dirty little secret is that "reserves" are money, and these gold reserves were confiscated from the people in 1933 by the United States Government. This is important, the US confiscated every ounce of gold from the citizens of the US, and transferred it to the private banking cartel known as the Federal Reserve Bank. The FED was formed in 1913, and it took them merely 20 years before they consolidated what Bernanke would classify as "Non-money" (Gold) into their "reserves".

Read the rest here: https://coinaxis.com/index.php/entry/gold-vs-bitcoin-coinaxis

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Here Is A Long "Rap" On Bitcoin,

From billionaire Hugo Salinas Price:

http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fi...

beesting

Gold, until you can put a bitcoin in your hand, then you do not

own it. If they cut the power, where does one redeem bitcoin? Bottom line you cant hold it, bury it, or keep it from getting hacked, then it is simply an investment vehicle, not much unlike ETF's, and he with the most coin controls the market, who has the cash out there that could manipulate the bitcoin market???.... I wonder??...

Always remember:
"It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds." ~ Samuel Adams
If they hate us for our freedom, they must LOVE us now....

Stay IRATE, remain TIRELESS, an

Who has the most gold

Who has the most gold controls the market?

Hmm. Seems we can't overcome that problem.
Technology has now made electricity decentralized plenty to accept that a (Revolution TV show like scenario) is impossible.

gold

easy. Gold.

"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe."-- Albert Einstein

In an economic crisis, the

In an economic crisis, the only thing you need is land and seeds. That's real wealth.

Republicae's picture

add to that guns and ammo to

add to that guns and ammo to keep the marauders away.

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

You can use Bitcoin at

You can use Bitcoin at walmart with www.gyft.com

Literally buy a giftcard on your smartphone with bitcoin when you know your total at the checkout then scan the QR code off your phone to pay!

Republicae's picture

Uruguay is the place to be,

Uruguay is the place to be, great farm land, lots of freedom...thinking about it for a second passport!

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

Sounds fantastic. Let us know

Sounds fantastic. Let us know if you go or find out more.

Republicae's picture

My wife and I are seriously

My wife and I are seriously considering it.

http://militantjeffersonian.com

"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun

It's important to understand

It's important to understand that although Bitcoin cannot be held in your hand, it is a scarce good. The only non-tangible scarce good I know of. There is a limited supply, it can't be copied, and unlike a gold backed OR fiat currency issued from a central authority like a bank or government, Bitcoin is decentralized.

Someone please point out if I'm wrong but I believe there are 2 major threats to Bitcoin value that could arrise. One is competition from other crypto-currencies and the other is government regulation over the infrastructure around Bitcoin, like the exchanges.

I don't think anyone is recommending to put your savings into Bitcoin, maybe a few %. Gold is a sure thing. The main reason people like me tell people they should use Bitcoin, is because it literally takes all the power from central bankers. It's a step toward conquering tyranny, and is a brilliant creation.

The only realistic threat I

The only realistic threat I see to bitcoin is government outlawing ownership. This would be nearly impossible to enforce, but it has vast implications. However, that does not stop bitcoin from being used in the rest of the world.

Alternative currencies provide competition, and this is a good thing. If a crypto-currency such as litecoin (which uses a different algo) is more efficient, then people will eventually use it. Bitcoin won't go away, it will just be less appealing.

Good comment!

It's a step toward conquering tyranny, and is a brilliant creation.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

The government can outlaw

The government can outlaw ownership all they want, but using the proper tools, they can't track it.

If you are right, I say, BUY BUY BUY!!! :)

bitcoin is electric money, no electricity, no bitcoin...

gold is independent, free from dependencies.

The electricity would have to

The electricity would have to be shut off worldwide. I see them confiscating your gold/silver/accounts before that would happen. Barring any unforeseen cataclysmic natural event, in which it won't matter anyway.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

Depends on the crisis...

I've never traded bitcoin and I'm just studying it now, but it seems to me...

1) If the crisis involves a system wide collapse ala the Soviet Union in 1991, then gold will probably be more useful than bitcoin.

2) If the crisis is the government is going broke and wants to seize everyone's assets, do a bank bail-in like in Cyprus, or imposes capital controls so you can't move money out of the country, then bitcoin seems to be very useful for that scenario, if you've secured your wallet(s) and taken various privacy precautions. Though gold would be way better than cash or electric digits in a bank account.

3) If the crisis is zombie apocalypse, then neither. Guns ammo and canned/dried food will be the currency, though gold would become useful again if/when things stabilize.

And if there is no actual crisis, but you want to leave the country and take your wealth with you, then bitcoin seems the way to go. You don't want to cross a border with gold in hand.

“Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.” William Pitt

That's easy: GOLD. If ya can't hold it in your hand, it ain't

yours.

No disrespect--and call me a paranoid loon--but how can people around here (being awesome, intelligent, and talented DPers... in short, nearly ideal human beings!) simply assume that computer technology / internets / digital satellite comms / all things tied to electricity / etc. will immutably survive catastrophe?

It seems like a common sense matter to me (But I can be dumb as shit, too, sometimes, so ....)

What would the Founders do?

I don't think any of the

I don't think any of the DPers are saying only invest/hold bitcoin. I've been saying the same thing for a long time. Hold assets, gold, silver, cash, guns, ammo, and yes...bitcoin. I really don't understand the aversion to holding one or two of them. If they end up at $100,000 per bitcoin, then you're doing well. If they end up worthless...you're out a few hundred fiat dollars. They eat that much up with taxes & inflation.

www.coinaxis.com - ~ Learn more about bitcoin/litecoin, and how they relate to the liberty movement.

I see.

Well, that's sensible enough. I took the question posed as being strictly an either-or scenario, but I agree with the point you make.

What would the Founders do?

Depends on the type of collapse

if its because of solar flare or cyber attack on the internet- bit coin become less than worthless.

If gold is confiscated because of government confiscation- bit coin is better

Silver is always probably better than gold as the confiscation risk is less and you can barter with smaller amounts because silver is worth 60X less than gold per ounce

Please subscribe to smaulgld.com

Phxarcher87's picture

Perceived value

Perceived value is what you have to ask yourself. After all we buy stuff with only green paper...

"Whenever you find yourself on the side of the majority, it is time to pause and reflect" - Mark Twain

Some Questions;

Can I buy Gasoline with bitcoin, oil, food, Gold, etc. etc.

beesting

Yeah,

until gas stations take bitcoin...

Author of Shades of Thomas Paine, a common sense blog with a Libertarian slant.

http://shadesofthomaspaine.blogexec.com

Also author of Stick it to the Man!

http://www.amazon.com/Stick-Man-Richard-Moyer/dp/1484036417

See the Reddit link (below).

See the Reddit link (below).

Thanks Velveeta.

Good links.

beesting

Which is easier to counterfeit?

Tungsten weighs the same as gold.

What weighs the same as a bitcoin?

even Teddy Roosevelt disdained pandas