Is Bitcoin Better Than Gold? Part Two: Trust
Trust is a component in both gold currency and Bitcoin, although working in two fundamentally different ways. With gold, trust is almost always required, be it in mining, minting, or banking. On the other hand, with Bitcoin, mandatory trust only enters the equation with a centralized mining network. All other trust requirements with Bitcoin occur when an individual voluntarily gives a company or other person control over his or her coins. However, contrary to popular belief, Bitcoin’s trustless nature does not necessarily make it a winner over gold when it comes to trust. If Bitcoin mining....
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In mining we trust. On the side of the US $1 bill it says "In God, we trust". Because money is all about trust. Trust that it's real, trust that it will remain at a similar value for the duration of the transaction at least, trust that the products are represented honestly. In the past trust that the paper was redeemable in gold, and more recently trust that our dollar will be backed by the "full faith and credit of the US Government". And when that trust is lacking society shuts down. To some extent, the crisis of 2008, in the same manner as the one in 1929 was about the lack of trust.....
The Winklevoss Twins have described Bitcoin as better than gold because it experiences ‘a lot less volatility’ and is a better store of value at the moment. They cited a Wall Street Journal story in May which described how the virtual currency has been more stable than gold over the last 28 days. Tyler Winklevoss said: “So I think investors who have gold in their portfolio and other precious metals have started to look to Bitcoin as a better store of value. It’s got better characteristics than gold itself. So it’s actually better at being gold than gold. We are seeing investors recognise....
Bitcoin (unlike many other cryptocurrencies) does meet many of the requirements of fiat money but as an institution some of its advocates have been doing it few favours. Many members of the general public see Bitcoin as a scam and in order to sell it to these people we must deal with the thorny issue of trust. In order to establish trust I would contend that we, as advocates, should consider changing our emphases to improve stability and thereby increase acceptance. We will have an immersed society when a citizen can pull up at a shop and order a pizza using bitcoins to pay, not as a once....
Money isn't what it used to be, writes Minyanville macroeconomics regular "Professor Pinch." And it probably won't ever again be what it used to be. In a column published Wednesday, the professor begins by noting that Bitcoin is currently "big" simply because "it's never been done before." Part science fiction, part gold, Bitcoin, he writes, appeals to "folks who mistrust government, central banks, and well, pretty much most of the rest of the world." Both gold and Bitcoin reflect a "me, here, now" philosophy, the professor writes. The problem with both those commodities, though, he notes,....
On August 4, the precious metals firm Kitco Gold announced the launch of a gold-backed stablecoin which will leverage an audit process via Cohen & Company with monthly attestation reports. Kitco has partnered with Tradewind Markets, First Digital Trust, and Stably, an asset tokenization provider. The gold-backed ERC20 tokens called “kitco gold (KGLD)” “represent one true, troy ounce of fine gold,” according to Kitco. Kitco Launches KGLD Token Backed by a Troy Ounce of .999 Gold In the seventies, Bart Kitner started trading gold with funds he got from a loan and....