Post
Topic
Board Bitcoin Discussion
Re: I am pretty confident we are the new wealthy elite, gentlemen.
by
MoonShadow
on 19/11/2013, 20:27:45 UTC

My point is that when the legacy financial system goes tits-up (which I envision will most certainly be through hyperinflation), shares of companies and (e.g.) productive farmland will still have value. Maybe less so for the stocks, as commerce will be difficult for some time. But merely destroying the system's currency will not make land and capital equipment vaporize.

This is a fundamental truth that often gets lost in the noise.  No currency is, itself, wealth.  Nor is any currency, itself, capital.  If & when the  common currency is discarded, the standard of measuring wealth and capital simply changes.  The wealth and capital are still there the whole time, but for an internim period it may become difficult to quantify the value in such a way as to be able to accuractly compare the values of different forms of capital.

Nor is gold, itself, wealth.  As was so well stated in the Cryptocromicon, gold is the corpse of wealth.