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The Great Taking left a strong impression on me. If you haven’t read it yet, it’s a must.

The quick TLDR from the book is that all assets worldwide are legally considered liabilities for the custodians. And if/when the custodian fails, the customers (i.e. you) become the unsecured creditor. That means you are the last one to be made whole after the secured creditors get their money. And who are the secured creditors? The fed/central banks. They literally own all the custodial assets in the world.

I love bitcoin and I believe it will succeed. But I’d be lying if I said I never had any fears about something going wrong. A critical bug or centralization of mining could severely damage the bitcoin network. The odds of bitcoin failing are low but not 0. This has led me to question if I should diversify my assets. But why would someone want to become an unsecured creditor? Going all in on bitcoin seems less risky than being an unsecured creditor in this economic nightmare we are living in today.

Minnaar 4mo ago

That is why there is still a place for other bearer assets of concentrated value like gold, silver, art, and the ultimate asset which is your skills, talents, and problem solving abilities

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Discussion

MAHDOOD 4mo ago

I agree and see the logic behind this position more now. The only issue is that it’s practically impossible to move any meaningful amount of these bearer assets across borders.

Modus 4mo ago

Depending on how much you have, you can liquidate them and use Bitcoin just for crossing the border.

You could also keep some in multiple jurisdictions.

Neither of these are good solutions for very large amounts, but a little bit can be powerful in certain circumstances.

MAHDOOD 4mo ago

Yeah that’s a solution I thought of but it’s a pain in the ass to swap back and forth with large amounts of any asset non kyc. I think keeping some of those assets in a different state/country just in case isn’t a bad idea either.

Modus 4mo ago

2oz gold is $7,000. That's not a boat load of money but when shit is hitting the fan, 7 grand helps. I think the vast majority of gold dealers could buy 2oz at the drop of a hat. Frankly selling gold might even be easier than selling Bitcoin in a lot of cases, especially as the amounts go up.

MAHDOOD 4mo ago

Good point especially in other poorer countries.