If the Fed says gold is an asset, then are bitcoins an asset?
http://blogs.forbes.com/afontevecchia/2011/07/13/bernanke-fights-ron-paul-in-congress-golds-not-money/
So....what's wrong with saying gold isn't money? Gold isn't money. People don't exchange it for goods and services, people buy it (with actual money) and hold onto it. Just like other assets, e.g. silver, oil, buildings, paintings, etc.http://blogs.forbes.com/afontevecchia/2011/07/13/bernanke-fights-ron-paul-in-congress-golds-not-money/
I know goldbugs love bashing the Fed, but this is just silly.
Have you been to Utah recently? Gold is money.. and has been for the last 6000 years of our history, and somehow you know better?
What is money:
That is not a "what is money" diagram, it's John Exter's inverted pyramid. The pyramid has many layers of asset classes graded according to safety, from the safest and least prolific at bottom (gold) to the least safe and most prolific at the top (small business).
The premise being that in a "flight to safety" scenario, people will rush down the pyramid towards ever increasingly safer but scarcer assets.