I am a world-renowned fortune teller or future seer. Whenever the Dallas Cowboys lose in the NFC playoffs over the last twenty years, I predicted it. When Bitcoin caught on with mainstream companies like Dell, PayPal and Microsoft, I predicted that too. Now, it is time to turn my attention to Gold, the illustrious, legendary shiny commodity that has little tangible value to the average consumer, but is highly sought after as a future investment and hedge against global inflation.
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Long-term investments in Gold will be fine, but the future will be much better when Gold gets with the times, and is used on your smartphone. Let me explain an increasingly probable version of the future, in a little Mad Max meets Blade Runner kind of way, when the current systems eventually fail under the weight of their debts. This is a little bit out there, but Bitcoin is an “outside the box” economic concept that is starting to take off, and Greece’s economy collapse last summer can’t be considered normal, or else it wouldn’t have made worldwide news.
Many compare Bitcoin to Gold and refer to it as “Digital Gold”, which is a reasonable analogy. Both represent a scarce, precious commodity with a growing demand amongst investors. They do have some stark differences that will severely alter how they will be used, going forward in this Technological Age we’re currently in. Let’s look at Gold a little more closely.
Let’s say that you are fortunate enough to have a nice position in the precious metal, and you own 1 Gold bar. This bar has a guaranteed purity of 99.5% (However, the actual gold content in a gold bar is permitted to drop as low as 350 oz worth out of 438.9 oz, let’s work with 430 oz of gold per bar, ok?). Thusly, this gold bar is worth approximately $466550 USD, when valued at $1085 USD per ounce. Pretty sweet!
Now let's equate an ounce of gold to a Bitcoin, which is worth approximately $370, and rising, as of this writing. Let’s say another man had the same USD amount in Bitcoin, which would take about 1260 Bitcoins. He or she keeps 90% of this horde in a Trezor, Case, or paper wallet, and they keep 10% in a “hot wallet” for convenient daily use, online with 2FA security. Both choose to keep their investments untouched for the next 5-10 years. Save them for a rainy day, so to speak.
It is now 2023, and it is raining pretty good! The world of economics has fundamentally changed from the central bank-controlled fiat currency system of today. The century-old “Ponzi scheme” that is Fractional Reserve Banking” and debt-based, Keynesian economic models that countries used as unlimited credit cards has since collapsed in 2021, in most modern national civilizations. The citizenry has lost confidence in fiat currencies since the fall of the U.S. Dollar to hyper-inflation in 2020. The economic establishment is trying to piece together a viable byproduct of this failed financial paradigm, and keep the central banksters and nation-states in control of the production of money. Just printing more dollars to cover up your financial mismanagement has never worked in the history of man, and it will soon fail again, in due time.
Without a trusted paper money anymore, unemployment is at all-time highs, and crime has increased many fold. Those without proper technical skills are replaced with computer and automation, vastly expanding the poor’s population out of control. Many banks have closed down, and wealth is where you find it. Just walking the streets is a major crime risk, as the citizens have become desperate for anything of value to trade in barter.
However, just like the advent of cable television and the Internet have vastly dissolved public interest in basic television stations of yore, The People are migrating toward sound money economics, and Bitcoin has gone viral. Gold values are rising tens of thousands of dollars, annually, but it is not as useful, in the real world. Gold faces consistent problems it cannot overcome, by design.
People with gold bars are forced to transport these valuable objects through crime-ridden streets to jewelers and refineries that can cut them down into coins. The problem is gangs, thieves, and the poor proletariat monitor traffic in and out of known gold establishments, making robbery a constant high risk. Many owners are not attacked at the store, but are followed to their home, or are attacked later on. Similar issues face those who use gold coins at merchants, who do accept them. Even some merchants tip-off local gangsters, through coercion, or their own pursuit of precious metal. The act of using physical Gold is dangerous, to say the least.
Moving the metal internationally in the future is also a series of issues not to be taken lightly. Moving any significant amount yourself is easily identified by the criminal underworld, trained to spot such transporters. Anything over 100 ounces or so of dead weight is easy to spot at a distance, to the trained eye. Assuming you could move a good supply of Gold to an airport, that when new problems begin.
Airport security forces current make not of these wealth transfers, document your departure and amounts, and usually let you go. In the future, national regulation forbids the transport of more than three gold coins per person, and only after filing out the proper disclosure paperwork. Only a bank or government can move any real amounts of the precious metal in privacy. Agents have been known to confiscate gold coins from passengers as well. It’s their word against yours, and some rooms have no cameras. For many, Gold is more trouble than it’s worth, as many lose their life dealing with such wealth, first hand.
The owner of Bitcoin fails to see such criminality and social turmoil. Bitcoin adoption by businesses has become common. It is common for businesses to deliver goods to your home if you pay with BTC, but many owners do not want to reveal an address for fear of attacks at home. Bitcoin users don’t even leave home with their phones if they have a mobile wallet, for fear of theft. People robbing smartphones is the most common of crimes these days. Walking down the street with groceries is hard, but taking a taxi is common, and will get you there, effectively. Cabbies all accept BTC, and not Gold, due to high incidents of theft.
Travel is also no problem for owners of “digital gold”, as the “brain wallet” concept has been improved, and some even go so far as to inject themselves with RFID chips, that can be updated with new balances in real time, and spent with a swipe of the hand. RFID chips are common in the populace, so airport scanners will think it is odd if you do not have one. Wealth, therefore, travels with the individual fairly easily, with some having far more than others.
This developing void in the gold market begins to get filled by the private sector, as gold can be deposited in the few banks that survived the economic reset, and balances are spent in the digital realm. Banks have an excellent security of physical wealth and adjust to the new world as soon as they accept it as reality. Depositors receive a monthly statement, just like today, but it comes to their RFID chip, and can be displayed on any computer monitor with a motion of the hand. This also gives banks the option to charge for the use of gold, or to confiscate it for any number of imaginary offenses, at their discretion.
One more thing to consider. Gold has been mined for thousands of years, and will continue to be mined for thousands of more, so its level of scarcity is relative. Gold is much harder to mine than dollars are to create. China is rumored to have as many as 10000 tonnes of gold bought, mined and stored for their coming gold-based economy while underreporting that they have just over one thousand tonnes. Russia may have as much as 5000 tonnes as well, so that is an incredible amount between two allies.
That is a lot more than the almost 15 million Bitcoins in existence. Well over 80% of all the world’s supply of Bitcoins will be mined by 2020, so the Bitcoin market MUST increase in value just based on sound monetary values of supply and demand alone. Demand would have to dry up outright for values to not increase dramatically within the next five years. The point is gold mining for wealth may never end. Mass Bitcoin mining definitely has a shelf life.
This picture of the future has a gold-based economy, Bitcoin, or a barter system that still manages an assortment of fiat currencies with some fraction of their previous value. Cars, apartments in security buildings and prime locations away from the common street markets are almost exclusively held by owners of Gold, Silver and BTC. Those still married to the old paper currency system live and work in massive market areas. Think of 85% of the western society’s population going through Thailand-style street market systems to make ends meet. Many of the conveniences of today are beyond their pay scale.
Standards of living have dropped precipitously. Few were prepared for the financial collapse, and they were left for dead when their meager holdings were confiscated in banking “bail-ins” and other establishment-structured wealth transfers, at scale, foreshadowed by the Greek implosion in 2015. No one thought it could happen to them, and they failed to plan, so they planned to fail in this brave new world.
Is this fairly dark window into the future just pure fantasy? A fairy tale? A possibility? A probability? Or fait accompli? The way governments have worked against the civil liberties of their citizenry; it is not as far-fetched as you may think. In any event, the time to prepare for whatever comes after this crumbling, debt-based economic foundation we use now, and you probably have a lot less time than you think, as well.
Do you really trust your government to do what’s right for you and your family, when push comes to shove? I’m buying Bitcoin for whatever happens next. I leave the fate of Rome to you….