Bitcoin vs. Gold

24 January
Kitco:

“In the newly published edition of The Independent Speculator, I closed with some quotes about gold:

“Gold is money. Everything else is credit.” — J.P. Morgan

“Gold is the only financial asset that is not simultaneously someone else’s liability.”— Doug Casey

“Every piece of gold jewelry or coin ever made still has value. Can you say the same thing about stocks or bonds?”

— Nicholas Colas

“If it were possible to cure evils by lamentation and to raise the dead with tears, then gold would be a less valuable thing than weeping.”— Sophocles

“Because gold is honest money, it is disliked by dishonest men.”— Ron Paul

These are all important insights I think every investor and speculator should be well aware of.

Taking them together got me to thinking…

    • A gold coin or ring is always going to be worth something in a market.
    • Assets on paper are subject to default and other counterparty risks. This includes legal tender, not just stocks and bonds.
    • Cryptocurrencies don’t even have a counterparty one can go after if they fail.

So… Cryptocurrencies could go to zero, while gold can’t.”

 

Read the full article here