Or perhaps you’d rather have 28 ounces of gold, rather than a single bit-coin? Or would you rather have 2,410 ounces of silver, or one bit-coin? The respective prices and what you can get in such a trade, are virtually equal. Bit-coins, as of Friday, when I am writing this is, about $76,000 FOR ONE UN-BACKED COIN, WHICH YOU CANNOT HOLD OR STORE IN YOUR SAFE. A COIN, WHICH IS NOT DIRECTLY CONVERTIBLE INTO ANY OF THE WORLD’S CURRENCIES, OTHER THAN BUYING ANOTHER BIT-COIN, OR TRADING WITH SOMEONE WHO WANTS A CERTIFICATE OF ONE, (which has to be registered and taxed).
Since no one who has ‘invested’ in bit-coins, will ever get to hold a physical one, how does one know they ‘own one?’ Simple! It’s all in a complex computer system, which requires so much electrical energy to determine who owns what, that it’s unbelievable. Locally, a huge bit-coin affair, built a large solar system to relieve pressure from the local electrical company. What happens if computers fail? What happens of electricity fails? Are bit-coins made of metal? Thay can be, or also can be made of plastic.
Are bit-coins backed by anything, such as gold, silver, brass, aluminum, copper, platinum or any physical thing? No. What determines their value? The only determining factor, is how many are sold or bought, since they have no physical value. When bit-coin was ‘invented,’ it took two of them to buy a pizza. Obviously, since initially, one bit-coin bought a half pizza, and now each one surpasses the price of a new, medium size Mercedes, a lot of people must have bought them, and still are doing so.
If millions decided to sell theirs, as millions did with their stocks in 1929, would a bit-coin have any tangible, physical value? That would be impossible, since no one has any physical bit-coins. A share of stock my go from $100 to a dollar, but you still have partial ownership in a physical business or manufacturing corporation. (No one has any physical stock certificates any longer, I don’t think, but only computer records). In a worst-case scenario, could bit-coin computer certificate owners, be completely ‘wiped out,’ since they own no partial, physical ownership in anything? I think so.
When you buy a physical auto on credit, or for cash, you have a physical car, or a physical car, backed by the credit agreement. The same with a home. You may get a mortgage, but that mortgage paper, registered, and recorded, with notarized signatures, is backed by a physical dwelling, piece of land, or farm maybe, but something tangible, physical, and which has value backing that paper.
All physical things, such as autos, homes, land, or even gallons of milk or gasoline, have monetary value, which can go up or down, depending on the supply of raw materials needed to manufacture them, or the volumes of their buys or sells. When Trump won, gold went down $80, and it is now approaching its previous price. Real estate and cars, are down now, but they are physical assets, which can be lived in or driven. Gold and silver, are historic real money in all currencies in all nations in all of history. They have physical value due to their huge cost to explore, mine, mill, smelt, manufacture, distribute, sell, etc., not counting their scarcity and beauty in the form of jewelry or usage. Gold and silver, can be stored for future use as bartering instruments or physical sale to millions of potential buyers. Bit-coins have no physical allure or desirability, or for that matter, even physical presence! Just a computer entry.
A share of stock, represents a microscopic ownership in a large or small corporation. Gold and silver, are self-backed, and need no government backing, recording, notarized signatures, or complex ownership complexities. Just call one of us, and a 1% charge, delivers them to you at wholesale cost. (We have no retail store, and do no advertising).
To me, bit-coin is an ultimate disaster, waiting to happen, and when it does, the consequences can be horrendous. Millions have bought, and are still buying fictitious bit-coin. I say ‘fictitious,” because no one buying one or hundreds, ever physically gets one! You decide for yourself, but physical in anything, is, to me, anyways, all important!