Gold and Bitcoin the real money | Everything else is Credit

Since ancient times, Gold has been a form of money with intrinsic value in itself, so many nickname it as the True money of recent times, also, we can not forget the Bitcoin, which, since the last crisis of 2008, Its anonymous creator under the pseudonym of "Satoshi Nakamoto" gave birth in 2009 to Bitcoin, created to be a quick payment currency and also with an intrinsic value, since it is finite, that is, there are only 21 million of it so it is a deflationary asset.

In this sense, Bank of America comments that "Gold will reach $3,000, 50% above its record", a price level that, due to current monetary policies, is not far from happening.

What is happening?

I have commented in my previous publications, the more money central banks print, the more value gold will have, so it would be wrong to say that gold will rise in price. The correct thing to say is that all currencies will fall in price due to the loss of confidence caused by banks and governments printing money to keep the system on its feet.

• The Dutch Central Bank made a surprising statement recently: "If the world monetary system collapses, we will need gold to start from scratch.
• J.P. Morgan said more than a century ago something that people seem to have forgotten today: "Gold is money. Everything else is credit.

People think they have money, but they don't. By definition, so-called "Trust Money" is not really money. They are just currencies whose value depends on the trust of others, that is, that trust supports their value. To put an example not too far away and what is currently happening is the following:

When everyone lost confidence in Venezuela, the currency lost all its value and those who were "rich" because they had millions in the bank ended up losing everything and discovering the bad guys that what they saved was simple printed paper.

The truly rich have tangible things that cannot be easily printed or removed, to be a little clearer, these people possess: Real estate, gold, silver and museum quality artwork. Few people understand that gold is not just a commodity or an investment, gold is money. Gold is not supposed to give you a return, simply because it is money, pure money. Investments give you a return because you take a risk in making them, but with gold the risk is zero. This is a real way to own and conserve wealth over time, without having to worry about the effects of inflation and bank policies. Banks cannot print gold, so it cannot be devalued.

The same thing happens with Bitcoin, the so-called digital gold, this is due to many features that make Bitcoin pure money as well, essentially this is decentralized, so no government entity can control, it is in the hands of its community and the many nodes that compose it, thanks to the Distributed Logging Technology (DLT), which results in Bitcoin not being able to print more than 21 million, a feature very similar to gold, so this is another deflationary asset as I already mentioned.

Technically, gold doesn't go down or up, despite what people think and what the media says. When they say that gold goes down in relation to the dollar, what really happens is that the dollar gets stronger, when they say that gold goes up in relation to the dollar, what really happens is that the dollar gets weaker, that is, the dollar always stays constant.

Fiduciary currencies come and go, but gold and Bitcoin always remain, despite the volatility that Bitcoin, for example, has, the truth is that its state will always be deflationary and it will always have a tendency to rise, and in time its tendency will always be upward. In the case of gold it has always been here before all of us and will be here long after we all leave. Gold is the barometer with which everything in the economy should be measured, especially currencies, on the other hand, Bitcoin, is being a reference of exchange in countries like Venezuela.

When someone asks you what money is, mention gold and Bitcoin. When someone asks you what debt is, tell them about the fiduciary currencies that exist today, such as the dollar, the euro, the yen, the yuan, the pound and the peso.

Great powers acquiring tons of gold

I am Co-founder of the @erarium project, in this community we offer training processes in trading, finance and economic management. Consider joining our official Discord by clicking HERE.

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