17 Comments
User's avatar
User's avatar
Comment deleted
Feb 26Edited
Comment deleted
Expand full comment
Bagholder's avatar

Not sure I see how being divisible equates to being FIAT. The more divisible something is, the more efficient it would be as money….BTC is more divisible than Gold, thus more efficient as money. But that doesn’t make it FIAT.

Expand full comment
Michael green's avatar

What happens in the event that there is no electricity, and therefore no internet?

Expand full comment
Bagholder's avatar

No electricity?? That is the same argument candle manufacturers used a hundred years ago before going to bankruptcy court. Electricity is here to stay, and so is the internet.

Expand full comment
Michael green's avatar

Fair enough Bag, but sometimes the electricity is not available for extended periods of time. And, one of those extended periods could could occur when you absolutely need to access your bit-coin.

But you are keeping your gold, so you will be ok, but I don't think it's a good idea to have everything in bit coin. I have to admit, I don't really understand bit coin, and therefore I don't trust it. I have some gold and silver, some cash.

Expand full comment
Bagholder's avatar

You are not alone; Bitcoin is very difficult to comprehend, especially for my generation. It took me 100+ hours of work to wrap my head around it, but once i saw it - it's not something you can unsee. Even if you are not inclined to do your own research, consider Bitcoin is the top-performing asset on the planet 12 of the last 15 years - and the smart money (Blackrock, Fidelity, Goldman, etc...) is buying hand-over-fist. Sometimes, who is on your side of the trade is all you need to know.

Expand full comment
PJ's avatar

Government doesn’t have to stop bitcoin. They just have to stop your access to it. The 21st century version of executive order 6102 will “allow” you to exchange your crypto at a price they like. JPM and the rest will gladly assist, and debank the non compliant. Another option is they co-opt bitcoin and announce convertibility with a CBDC. This will accelerate the push to fully digital “money”. And if you are really worried about EOTWAWKI, good luck when the grid goes down.

Expand full comment
Bagholder's avatar

Looking at the political winds, I see a very pro-Bitcoin administration … as for 6102, what everyone misses about that is the circulating gold at the time was over half the monetary float. So, after seizing the gold & revising price up to $35, the government was solvent again. For BTC to get to 1/2 the monetary float, it will be at 44 million a coin. The bigger problem for Gman is most BTC is outside the jurisdiction of the US. Since it can be stored in your head, people who self custody will easily cross borders to a more crypto friendly country.

Expand full comment
PJ's avatar
Jan 26Edited

Yes it seems everyone is bullish on bitcoin. Amazing asset. My objection is to think governments will readily allow citizens to escape the inevitable confiscation, and I kind of doubt in a crisis you’ll be swapping codes with counterparties for food / ammo / etc.

Expand full comment
dk's avatar

Bag, there are few places in the world I can show up and not trade gold for local currency, land, food, whatever. I cannot do that with Bitcoin.

Yes, Ive owned and traded Bitcoin for a profit. I’ve had a hard time embracing the idea of it as a store of value or energy. I feel like it’s more of a tulip trade, though I admit I could be wrong.

Expand full comment
Bagholder's avatar

I look at the fact that Bitcoin has not yet been adopted everywhere as an opportunity, not a liability. There was a time the wheel, indoor plumbing, electricity, cars, internet, cellphones, etc didn't exist .... Those things, just like Bitcoin are superior technologies (not trades) to what existed before them, and they all took time to be universally adopted. Can you imagine the fortunes made getting long electricity or the internet before total adoption? That is the opportunity present in Bitcoin today. Of course, I could be wrong ;-)

Expand full comment
Lyle's avatar

Proverbs 22:7 is a true statement, the borrower is slave to the lender. What nobody does anymore is defend fiat, it is debt money, every last fiat note is the money of slaves. At least Bitcoin is not created with debt, and its inventors should not be hanged as should the scoundrels who still enslave us with it. Yet I blame our forefathers who were stupid enough to turn in their gold on command from FDR in 1933 and did nothing when they clipped the silver in 1965. That’s what patriotism and ignorance gets you, along with endless wars only possible with fiat. At least now people are considering what money is and should be. The answers will not come from our slaveowners. (Slightly off topic but I’m old and need to rant once in awhile).

Expand full comment
Lyle's avatar

Side note, if anybody thinks FDR or the government in 1965 had a right to that gold and silver, read the Coinage Act of 1792. Those coins belonged to the people, not the government who only determined the design, contents, and did the minting. The only coins that belonged to the government were collected in taxes.

Expand full comment
jack collins's avatar

It sounds like an unsound decision is being made and all of the gold holdings are about to hit a faulty wire. If that were the case gold would survive, bitcoin i am not so sure.

Expand full comment
Patsy's avatar

who can afford a $95 to 100K bitcoin? Most people can't even afford a $3K ounce of gold... it seems like that ship has already sailed.

Expand full comment
Bagholder's avatar

Who says you have to buy a whole one? The idea is to put X number of dollars (whatever you can afford) into an asset growing at 100% a year. The Number of BTC you get is irrelevant; what matters is the amount you put into the asset.

Expand full comment
Patsy's avatar

That's why I like reading your stuff Bag... you always have different perspective then my own perception. You make me think better :-)

Expand full comment
Bagholder's avatar

Thanks for the kind words ... I believe you think just fine, being open-minded like you are to what others think indicates high intellect.

Expand full comment