Gold standard fails (again) in real time
Zimbabwe devalues its gold-backed currency by 40% after just 6 months, proving that centralized monetary systems are always structured to the advantage of those in power. With bitcoin, everyone can be their own sovereign central bank.
#gold #bitcoin #fiatponzi
It's important to note that it isn't the gold that failed, but the fractional reserve system of banks custodying that gold. Anyone holding their own just saw their face value rise to reflect the change, perhaps minus some minting overhead costs.
Bitcoin streamlines this -- but if people accept fractional reserve custody arrangement, they can certainly expect to see a devaluation of their deposits relative to the underlying BTC. Not your keys, not your coins.
