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I purchased gold as safety in opposition to banks and inflation for the final 20 years, however now I’ve to confess that bitcoin is a greater type of cash than gold. I now have a 50/50 publicity to gold and BTC. I would not be shocked if over time bitcoin will take over my whole portfolio. It has been troublesome to persuade different gold bugs that they need to at-least purchase some bitcoin. And these are the people who perceive sound cash and why we’d like it. It’s even tougher to persuade my family and friends that do not perceive cash in any respect and are nonetheless residing the fiat expertise.

Just a few issues with gold that I’ve at all times struggled with for the final 20 years, and that bitcoin fixes virtually like magic:

1. I’ve struggled with the excessive inflation of gold. It was the most suitable choice out there for hundreds of years. Particularly in comparison with fiat inflation. However nonetheless there’s plenty of inflation. Diluting the worth yearly. Individuals do not understand that the quantity of gold has doubled since 1980 from 100 tonnes to 200 tonnes: link1. Take into consideration this.. for hundreds of years we’ve gold mines getting solely 100 tonnes out of the bottom and it solely took FOUR many years for the opposite 100 tonnes. I count on this inflation to solely speed up with higher know-how to get gold out of the bottom and sea. Bitcoin fixes this. A hard and fast quantity of 21 million and that’s it. It feels like magic however I lastly perceive that it’s actual. For the primary time in historical past we’ve one thing that may’t be printed or diluted in anyway. I virtually cannot management my pleasure fascinated about this.

2. I at all times need to purchase extra gold cash and bars, however I can by no means be 100% positive that it’s actual. Even now whereas holding my fairly gold coin I am not 100% positive, perhaps 99.5% positive however that isn’t sufficient. So costly gold assessments or paying huge premiums from trusted sellers for his or her repute. Bitcoin fixes this. Completely excellent! By no means worrying about counterfeits in any respect. There are so so many discussions about recognizing gold counterfeits and nonetheless they ignore the truth that bitcoin has already solved this difficulty! “Do not belief confirm” has by no means been so easy.. link1 link2 And it’s not solely small retail, even for state actors gold counterfeits are a giant difficulty. There have been so many scandals in solely the previous few years. link1 link2 link3 And no audits allowed to examine if the gold within the federal reserves is actual. Do not belief confirm will not be at all times an possibility right here.

3. Premiums and Intermediary in gold. After I purchase my gold cash I’ve to pay a premium of 5% or extra over spot worth. After I promote those self same gold cash too the identical vendor I get 5% much less for my gold. For bitcoin I virtually pay no premium and I do not lose a big percentages to a intermediary after I need to promote it. It’s completely excellent.

4. Piece of thoughts that my treasure is protected! As a gold bug you’re at all times paranoid and for good motive. Our largest drawback: not your keys not your cash can be true for gold bugs. If you do not have the keys to your personal protected holding your gold, you do not personal the gold. So there’s a actual hazard of shedding all of it in a easy theft, fireplace or pure catastrophe. Or it’s important to depend on a regulated custodian to retailer the gold for you. However they’ll at all times hand your gold over to the federal government if required. And all through historical past this has occurred many times. Often due to huge monetary system issues, wars, some type of emergency, perhaps a regime change or one thing so simple as “Government Order 6102”. Because of this gold will at all times get centralized at a spot the place the individuals in energy can simply confiscate, management and manipulate it. Each choices are horrible. Once more Bitcoin fixes this! I solely have to recollect my Bitcoin non-public key and I can have my cash in my head. My frigging head! Once more if I cease and take into consideration all of the implications, it’s simply mind-blowing.

5. The pliability and the conveniences of a digital gold as a substitute of analog one. The concept no person can cease me on the border and confiscate my cash is unimaginable and an amazing peace of thoughts. The concept of storing all my gold cash in my ‘jail pockets’ when the shit hits the fan in my nation will not be one thing to sit up for.

6. Divisibility! The concept I can promote a fraction of a bitcoin to purchase one thing as small as a apple is simply not doable with gold. And with lightning I can now even purchase one thing that’s solely a fraction of a penny. Unimaginable!

I have been attempting to boost these factors to my fellow gold bugs for a while, however the hate in the direction of Bitcoin is actual. One thing new is sadly at all times handled as a tread. However in time I am satisfied that one of the best cash will win.