Bring Back The Gold Standard (Worst Idea Ever)

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

In this video, I discuss how any system based on a gold standard contains the seeds of its own demise, and will eventually devolve into paper banking plus central banks.

Here's a common example of "gold failure mode":

I pay my bank an annual fee to store my physical gold.

(If you're really wealthy with physical gold, the only two options are using a bank or creating a small private army, which comes with its own problems).

That bank has a competitor that instead lends out its depositors' gold for a fee. This competitor bank is then able to offer a reduced or zero annual storage fee, thus stealing all the business from conservative banks that don't lend out their depositors' gold.

Pretty soon you only have partial reserve gold banks, because the banks that didn't do it were driven out of business.

If a lot of people ask for their gold at the same time in a context of fractional reserve banking like this, you then end up with widespread bank failures.

That's when people decide to create or recreate "central banks" that can bail out or stabilize the banking system.

Voila! You've just put your money into the control of very small group of people who will eventually do stupid and corrupt things.

Not investment advice! Consult a financial advisor.

Peter Schiff on a return to the gold standard:
https://twitter.com/peterschiff/status/1293919603308089344

New BRICs currency backed by gold:
https://watcher.guru/news/brics-currency-to-be-linked-with-gold-says-economist

Executive Order 6102:
https://en.wikipedia.org/wiki/Executive_Order_6102

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
#Bitcoin

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