Quote from: korila on June 11, 2016, 09:32:06 PM

Quote from: r0ach on June 11, 2016, 08:58:05 PM

Quote from: MatTheCat on June 11, 2016, 08:32:59 PM

When equities plummet, gold generally takes a hit as well

Gold went to like 85% of normal value in the 2008 crash due to liquidity crunch. Even though it did go down, it wasn't going down as much as other assets. That's just what happens in a liquidity crunch, the most liquid asset that falls on the worst side of the store of value scale in Gresham's law is temporarily over-desired (USD). THIS TIME will be different. You won't be able to just go all in on USD cash to be safe. The 2008 crash didn't involve things like bank holidays and Cyprusing in the US. The next crash will. You'll either lose all your money or receive a huge haircut by going all in on fiat cash this time during the liquidity crunch.

In debt based systems, wealth is destroyed during defaults and creates cascading deflationary collapse. Bitcoin is not debt based or fractional reserve, so it's completely immune to this. There is no bank holiday in Bitcoin either. All electronic fiat currencies will simply cease to work in the next collapse because the entire money supply is destroyed in deflationary collapse. The bank that said they had 40 million in deposits that was leveraged to the moon, will now have only one million in reserves after and can't fulfill their obligations.

If you want to pay someone using an electronic currency, there will be nothing left standing besides Bitcoin. You could pay someone using gold or silver, but gold and silver has lack of granularity and high friction in use, making it not functional at all for international business, and only useful for local, primitive, barter style economies (i.e. going back to the dark ages).

Well what about Bitgold? It seems like their service is promising and will make more sense to normal people.

It's a freaking Soros involved "paper gold" service. It's really no different than trading the paper gold markets that already exist...

Will this be Soros' one honest venture ever? Probably not. Seeing things like a 0% fee rate for gold storage is also usually a HUGE RED FLAG to people.

When the economic end times come, George Soros is probably the last person I would trust with my money to generously "hold" for me for "free".

edit: And Bitcoin $600 now. We're looking at roughly 25 Mat fails in a row now.