For years, Bitcoin hodlers and gold bugs have sparred over which form of hard money is superior, the digital asset born from code or the precious metal with millennia of history.
Any thesis that encourages opposing sides of a debate to recognize common goals and work harder towards reaching consensus is worthy of more attention. Standing with Bitcoin, I would emphasize portability and scarcity, and remind gold bugs of how many goods and services are now available online, a mere 30 years after the inception of an internet-based global economy. What will this economy look like 30 years from now, and which asset is better positioned to both maintain a store of value and settle debts? To me, the answer is obviously Bitcoin.
Great post. I envision a future where most HoldCOs have a Board directive to acquire as much hard money ($BTC) as possible. The model of fiat treasuries will seem as archaic as the 1970s gold revaluation. 👊
Great work and for what it’s worth I think with the change of Fed chairman to a pro Trump policy person this becomes even more of a probability, it puts Trump in a position to do it as emergency debt crisis management then ride the wave of AI abundance 🤔
Wonderful perspective! As I move forward with my positions, I've been warned to custody my own BTC and to not buy from KYC platforms. I don't understand why. The mantra, "Not your keys, not your BTC" doesn't quite make sense to me. Unlike an ETF such as IBIT, seems to me that I would own actual BTC whether custodied or not, tracked and surveilled by KYC or not. Can someone explain for myself and others looking for clarification? Many thanks!
Simple. I had BTC deposited with Celsius. They went bankrupt and I only received on 60% back. Your own cold storage BTC is like a gold coin. You can keep it forever unencumbered and pristine until you or your descendents need it. The entirety of your wealth can be held with 24 words in your memory and unlocks anywhere in the world with an internet connection. iBIT cannot do this. Cheers !
Thank you, Stan! I appreciate you sharing your unfortunate experience with custodied BTC. So important to know! Your phrase "...unlocks anywhere in the world..." is also key. If BTC is custodied by, say, Robinhood or other U.S. KYC platform, it also stands to reason that the assets would fall under U.S. monetary policy. This policy could potentially be restrictive for unforeseen reasons, (e.g., war) and a cold wallet would preserve access in other locales. The rationale for self-custody is getting clearer as I understand the need to go beyond "ownership" to also include "access" and "control."
Gold was once confiscated. If governments deem Bitcoin recovery a national emergency, they will buy your bitcoin. Imagine it is 1 million and can buy a house. They give you one million and in a month that 1 million can buy a 5th of a house. But 1 bitcoin could still buy a house. You want to be able to refuse to give up your bitcoin. You can’t do that if they call black rock and tell them to turn over everyone’s bitcoin for cash.
Great point! I'm also worried about governments blocking BTC wallet addresses if cold storage owners refuse to sell. The blockchain would clearly show that BTC was previously bought and never sold, indicating that the BTC continues to be stowed. Quite a conundrum if policy goes that far.
Excellent points
I agree, gold bugs and bitcoin hodlers should be on the same side. I do think though that this is going to be some time away.
Great post!
Any thesis that encourages opposing sides of a debate to recognize common goals and work harder towards reaching consensus is worthy of more attention. Standing with Bitcoin, I would emphasize portability and scarcity, and remind gold bugs of how many goods and services are now available online, a mere 30 years after the inception of an internet-based global economy. What will this economy look like 30 years from now, and which asset is better positioned to both maintain a store of value and settle debts? To me, the answer is obviously Bitcoin.
Very well written!
Great post. I envision a future where most HoldCOs have a Board directive to acquire as much hard money ($BTC) as possible. The model of fiat treasuries will seem as archaic as the 1970s gold revaluation. 👊
Great work and for what it’s worth I think with the change of Fed chairman to a pro Trump policy person this becomes even more of a probability, it puts Trump in a position to do it as emergency debt crisis management then ride the wave of AI abundance 🤔
thank you for writing this....
Wonderful perspective! As I move forward with my positions, I've been warned to custody my own BTC and to not buy from KYC platforms. I don't understand why. The mantra, "Not your keys, not your BTC" doesn't quite make sense to me. Unlike an ETF such as IBIT, seems to me that I would own actual BTC whether custodied or not, tracked and surveilled by KYC or not. Can someone explain for myself and others looking for clarification? Many thanks!
Simple. I had BTC deposited with Celsius. They went bankrupt and I only received on 60% back. Your own cold storage BTC is like a gold coin. You can keep it forever unencumbered and pristine until you or your descendents need it. The entirety of your wealth can be held with 24 words in your memory and unlocks anywhere in the world with an internet connection. iBIT cannot do this. Cheers !
Thank you, Stan! I appreciate you sharing your unfortunate experience with custodied BTC. So important to know! Your phrase "...unlocks anywhere in the world..." is also key. If BTC is custodied by, say, Robinhood or other U.S. KYC platform, it also stands to reason that the assets would fall under U.S. monetary policy. This policy could potentially be restrictive for unforeseen reasons, (e.g., war) and a cold wallet would preserve access in other locales. The rationale for self-custody is getting clearer as I understand the need to go beyond "ownership" to also include "access" and "control."
Gold was once confiscated. If governments deem Bitcoin recovery a national emergency, they will buy your bitcoin. Imagine it is 1 million and can buy a house. They give you one million and in a month that 1 million can buy a 5th of a house. But 1 bitcoin could still buy a house. You want to be able to refuse to give up your bitcoin. You can’t do that if they call black rock and tell them to turn over everyone’s bitcoin for cash.
Great point! I'm also worried about governments blocking BTC wallet addresses if cold storage owners refuse to sell. The blockchain would clearly show that BTC was previously bought and never sold, indicating that the BTC continues to be stowed. Quite a conundrum if policy goes that far.