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As gold scales unprecedented heights, and cryptocurrency stumbles, a familiar voice chimes in: Peter Schiff, declaring victory. But let’s not forget Nick Szabo, a cryptographer often whispered to be Satoshi Nakamoto himself. What doeshemake of gold’s gilded age amidst crypto’s current chill? His perspective, unlike Schiff’s predictable pronouncements, offers a far more intriguing angle on this evolving financial face-off.
Szabo waded into a critical debate: if gold was monetary perfection, why its fall from grace? His answer cuts to the quick: not a crisis of value, but a collapse under centralization’s weight. Gold didn’t lose its luster; it was crippled by control.
From Fort Knox’s guarded gates to Swiss vaults’ silent depths, gold’s fortress shielded it, yet inside this trusted cage, corruption found a foothold, whispering opportunity to those entrusted with its care.
Gold’s fatal flaw as currency wasn’t its fluctuating value or limited supply. The real problem? Humans had to entrust its safekeeping to someone else, a recipe for potential betrayal and control.
He then pointed out gold’s Achilles’ heel: its vulnerability to theft. Transporting hefty quantities was a logistical nightmare, a slow and perilous undertaking. Enter bills of exchange, ingenious substitutes for weighty bullion when transferring fortunes. Telegraphy upped the ante, enabling lightning-fast transactions. Merchants reveled in settling debts remotely, dodging the dangers of shipping precious metal across borders.
Bitcoin vs. gold
Szabo’s words arrive like a well-timed jab. After months riding high above 30, the BTC/gold ratio has plunged into the low 20s. For goldbugs, this is the champagne moment they’ve been waiting for – the perfect opportunity to spike the football and declare victory in the age-old battle of stores of value.
Even if gold shines momentarily, remember why crypto was born. Gold’s fatal flaw? Custodial control. Bitcoin, by design, obliterates that risk. So, each gold rally isn’t a victory for metal; it’s a flashing neon sign reminding us why we needed a digital asset we truly own.
Thanks for reading Top Satoshi Candidate Explains Why Gold Is Not Good as Currency
