Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
realr0ach
on 12/01/2019, 13:16:56 UTC
I like your content, it makes me think on some aspects of the current world monetary/goods system.
One thing I disagree with is that in order for you to be able to spend that gold, silver or copper coin you've already made someone rich, the guys that mined the raw metal and the guys that sold you the coin so you can spend it.
Unless you start mining gold, silver or copper yourself and then transfer the raw material to a coin, you're making someone else rich.

Try mining gold yourself? Aren't all the gold, silver and copper mines in the World owned by A FEW large corporations based on licenses that the Governments granted them for lots of money?

At face value, you can argue that there are 'choke points' for bringing new metals into the system parties can attempt to monopolize, but I would say no matter how you look at it, the monopolization is less than that of bitcoin mining for numerous reasons.  For instance, where a river or stream dumps into another body of water is supposedly good for trying to find gold, and such a place can be hand mined by pan while spending zero gasoline.  

In an actual physical metals based economy, the price of diesel, which makes up a large amount of the corporation's cost of production for metals, would be priced in gold and silver instead of fiat dollars.  The corporation cannot misallocate capital by spending valueless fiat to pull new metals out of the ground in an inefficient way.  They would need to spend less gold and silver on gas than they're using to get it out of the ground.  As you can see, the corporation doesn't have vastly superior economy of scale over a human powered, pan miner of gold at a river making the little guy's effort completely pointless.

This is the exact opposite in bitcoin.  The corporation's economy of scale makes the little guy's effort at mining generally always pointless, and thus far more centralizing.