New BRICS Gold Currency?

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In this video, I discuss the BRICS proposal to issue a new trade currency backed by gold.

There are many pitfalls that cannot be avoided by a gold-backed currency: gold is expensive and difficult to store, assay, and move around to settle trade imbalances. It is outdated 19th century monetary technology in a digital world.

The gold standard has already been tried and been found wanting. A gold standard always inevitably leads to massive centralization, as well as having to trust governments and central banks that they won't print more money than they have gold to back it.

But aren't central banks loading up on gold?

Yes, they certainly are, but remember that these are highly politicized entities that are not investing for returns, but usually with more geopolitical objectives.

And they have an abysmal track record. If you loaded up on US Treasuries when they did, your returns have been terrible. Central banks are loading up on the one asset that will be the first to be demonetized by Bitcoin, which is the ultimate in economic poetic justice.

Unlike gold, Bitcoin is modern monetary technology. It is easy to store, verify, and zap around the world.

The BRICS countries would be much better off just using Bitcoin, rather than trying to reinvent a system that has already failed before.

Not investment advice! Consult a financial advisor.

BRICS planning to introduce new trading currency backed by gold:
https://twitter.com/wmiddelkoop/status/1677309719436832768

Fake bar of gold:
https://twitter.com/BitcoinMagazine/status/1677025217754042370

United States Bullion Depository:
https://en.wikipedia.org/wiki/United_States_Bullion_Depository

India pulling out of BRICS currency proposal?
https://timesofindia.indiatimes.com/blogs/truth-lies-and-politics/bricss-plan-to-float-a-common-currency-indias-reaction-to-it/

BRICS Bank CFO Sees No Move Any Time Soon Toward Common Currency:
https://www.bloomberg.com/news/articles/2023-07-05/brics-has-no-immediate-plan-for-a-currency-cfo-of-its-bank-says

Should Bitcoin Be Backed By Something?
https://www.youtube.com/watch?v=E6pGmGESjHw&ab_channel=BitcoinUniversity

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#gold
#brics
#bitcoin

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