GOLDBUG: Time to diversify savings?

EMAIL TO LUDDITE AND OTHERS

Bitcoin: The Inevitable Path Toward Global Adoption Of The Next World Reserve Currency https://www.zerohedge.com/crypto/bitcoin-inevitable-path-toward-global-adoption-next-world-reserve-currency

So, if the USD has a shelf life partially due to historical precedence and partially due to fiscal irresponsibility (overprinting of the money supply), what comes next? What replaces the USD? Another fiat currency? It’s possible, but my guess is the days of trusting a centralized party to maintain a stable supply of a currency have come and gone. Why trust, when you can just verify? An argument could be made that gold is today’s reserve asset as it is held by the majority of central banks.

RESPONSE

Not sure what to say on this, it’s above my pay grade.

MY CONCLUSION

Me neither. But, with the Gooferment’s inflation destroying the U$D’s value, it would seem that “diversification” of savings is essential to preserving what little wealth one has. 

Pre-1913, people saved gold and silver coins.  Since there was a gentle price deflation in the USA during that interval, it was a great strategy for preserving wealth.  After 1913, the erosion began, I blogged in June of 2006 about Evy’s Dad and his Fifty Dollar bill  —

https://reinkefaceslife.com/2006/06/30/rant-a-visit-from-one-of-my-favorite-socialists/

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My now departed father in law used to have a folded up fifty dollar bill in his wallet. He had carried it their since he was a young man, so that he’d “never be broke”. He was blue collar working guy. Salt of the either. Raised his family, paid his bills, and did the best he could. He was poor! BUT, he never realized, (I didn’t tell him cause he wouldn’t have believed me! I was just a child in his eyes.) that HIS beloved DEMOCRATIC (not that the R’s are any different), silently stole his “fifty in sunken city”. Yup, when he put that Fifty in his wallet if could buy lots of stuff: A hundred gallons of gasoline. Feed his family for a week. Ffity cartons of his beloved Lucky Strikes. Pay an entire hospital bill for an accident. It had value 60 years ago. After 60 years of inflation, I didn’t have the heart to tell him that his beloved Fifty was really was worth about 13 cents. Sad isn’t it.

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As you know I like gold and silver bullion coins, but recently I’ve been thinking about diversifying to bitcoin.  Now I’m thinking about GOLDBACKS. I’ve dabble in BITCOIN and ETHERIUM.  I’ll probably dabble in GOLDBACKs too.  My bullion coin dealer is shifting out of coins and into middleman.  (Why use him when I can go directly AMPEX or others?). Sigh. So in March, I’ll be shifting.  Not sure exactly what mix but I’ll do something.

YMMV

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“Three hundred years from now where will you be and where shall I be?” — Thich Nhat Hanh

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MONEY: The US dollar that is the fraud

>>>> I really wish I understood the crypto world better. It seems like such a scam.

There are numerous good videos on crypto, bitcoin, etherium, and other “distributed blockchain ledgers”.  Some sites will even give you coins to watch their tutorials.

Essentially a bitcoin is nothing more than having a number that is the product of two large prime numbers.   For example, 77 is the product of 7 and 11.  You prove that “77” is yours because you have a public key of 7 and a private key of 11.  This “ownership” is written in a “distributed ledger” in lots of places.  That’s all you really need to understand.  

The “mining” that everyone talks about is people finding these pairs and writing the public key found and their private key to the distributed ledger.  Then, transfers are done by someone combining that public key to your wallet’s public key using their private key and writing it to the ledger.  Copies of the ledger are then created by all the other ledgers who repeat that calculation and confirm it. 

Sounds complicated but it really isn’t.

What makes these “coins” of great interest is that, in the case of bitcoin and bitcoin/cash, there is a limited supply that can not be inflated by anyone.  Including the Gooferment.  As such, it becomes “maney”, similar to gold and silver.  Especially as it gets wide spread adoption, it will become that store of value that every one seeks who realizes that the fiat Federal Reserve Note is essentially being made worthless by the Gooferment inflating the number of “dollars” in circulation.   

Just like the Romans devalued the denarius (silver) coin and the French the (gold) franc, so to the USA is devaluing the dollar to give politicians the money to spend on our version of “bread and circuses”.

Like all empires, the USA will financially collapse … … sooner or later.

BITCOIN might emerge as the money of the future.  

I probably won’t be around to see it, but I believe it WILL happen.  

If you’re looking for a scam, it’s the US dollar that is the fraud.

Sadly.  Sigh!

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