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The problem with gold is not unlimited supply. Humans have mostly colonized planet Earth. It has become increasingly difficult to mine gold. Average Joe can no
by dnprock 6y ago
The problem with gold is not unlimited supply. Humans have mostly colonized planet Earth. It has become increasingly difficult to mine gold. Average Joe can no longer mine gold with a pickaxe. Gold mining now requires large capital expenditure. Space mining also requires large capital investment.
The problem with gold is centralization. Large capital investment prevents smaller players to participate. Nation states also monopolize the existing gold supply. New gold from space is likely going to end up in central banks' reserve.
Bitcoin faces the same problem with centralization. The hard cap makes Bitcoin even easier to manipulate. Nation states can pump and dump retail investors out of the game. Don't fight the Fed. If the Fed decides to enter the Bitcoin game, investors are going to lose. Once nation states monopolize the Bitcoin supply, we're back to the same situation like gold. Making decentralized money is not that easy. Bitcoin alone cannot fix everything.