Bitcoin vs Gold vs Fiat Money

Hey everybody welcome back to whiteboard finance. My name is Marco, and I’m here to help you master your money and build your wealth in today’s video. We’Re gon na continue from my previous video coming from what is money and how does it work comparing the traits of money between Bitcoin gold and fiat currency. So the reason for this video is because I wanted to dedicate an entire video and an objective and unbiased way of breaking down those different traits of money between these three asset classes. So I have no ulterior motive for making this video I’m not selling Bitcoin US dollars or fiat or gold or precious metals, I’m just breaking down the different traits of money and we’re going to talk about each one of those. So this video is gon na be on the laptop just because that’s the easiest way to convey this information, so thank you for joining and stay tuned. Hey everybody! Welcome to the second part of the video. As always, I appreciate you joining me as it’s gon na be a great value, packed video, so please stay until the end. The reason I chose to compare gold, Bitcoin and fiat currencies because we’re kind of dealing with the currencies of the past present and potentially the future and crypto currencies, and if, for those of you that want to become a little bit more well-informed about Bitcoin, I highly Recommend you picking up this book called the Bitcoin standard. It’S a great book and it’ll give you a good primer on pretty much what’s going on with crypto, specifically with Bitcoin, and also the history of money as well. So I’m gon na share my screen here. We’Re gon na go through a chart that I found on medium. It’S actually a really nice chart. I could have recreated this, but I want to give credit to I guess. Coin monks is the user where I found this so instead of recreating the wheel, he did a pretty good job of outlining the different traits of money. So we’re gon na talk about very quickly of those six different traits that I mentioned in my last video and then we’re also gon na talk about some new ones that are updated for the 21st century. In terms of I guess, you know for Bitcoin specifically so again, this is not to promote gold. Fiat or Bitcoin is just to take a look at those defining traits of money and we’re gon na take a look at those and compare them in this Excel spreadsheet. So the first is verifiable. So, basically you know this is anti counterfeit anti fake. If you will so, gold can obviously be melted in with different metals. It cannot be not point nine, nine, nine, nine percent pure. I can definitely be altered Fiat as well. You can, you know counterfeit money, even though it’s very difficult to do as technology increases, but it still is counterfeit able, if that’s even a word and then Bitcoin. Obviously it’s very verifiable. It’S on the blockchain technology, meaning that it’s always on a ledger. You always know where it came from and where it ended up, and you know that it’s real and legitimate fungible fungible in an economic sense is basically the property of a good or commodity whose individual units are essentially interchangeable. So, yes, all three of these are fungible portable. Obviously we know that portability we talked about in the previous video. With the example of the cow, you can’t just take a cow to the store and try and exchange it for groceries, so bitcoin is obviously highly portable. It’S digital, so all you need is either a physical. You know ledger if you will, or you can just remember certain codes to be able to always have access to your Bitcoin, so it’s portable pretty much wherever all throughout the world, if not universe. As long as Internet gets that far gold obviously is a little bit less portable, just because it is heavy and then fiat is very portable. You have digital Fiat, you know with a credit card, for example, or you know pixels on the screen of your bank account or you have you know – obviously dollars. You know: physical cash and coins durability, Bitcoin. The reason I believe they gave this moderate was just because it could degrade over time, not not the actual Bitcoin itself, but the things that you store it on so say, for example, you do store it on a physical ledger. So if you don’t know what that is picture, like a USB Drive, you know something could happen to that. For example, gold gold is that stood the test of time for literally thousands of years. It is very durable and then fiat. This got a low just because I think that if you really look at it from a physical durability standpoint, you know paper can rip, it can burn it can shred, it can, you know, get wet, for example, it can get eaten by animals. Ask Pablo Escobar: he had a bunch of rats eating. You know his American dollars when he was selling certain goods across these divisible. So Bitcoin is obviously highly divisible. You have one Bitcoin and then you have a bunch of decimal places after that which are called satoshis. So without getting too technical, one Bitcoin can be very, very, very highly divisible gold. Obviously this receives a low just because you can’t go to you, know Costco and you know, use a file and shave off some gold and say: okay, here’s my gallon of milk and you know, cheese and salt and butter and all that. Obviously, gold is very non divisible. You can have coins, you can have bars, but at the end of the day you know you can’t realistically take that into a store and trade a gold coin. You know for goods, if you will, fiat is moderate. Obviously, because you can divide it from you know, $ 100 bill $ 50 bill $ 20 bill $ 10 bill, etc, etc, and then you know digitally you can divide it. However, you want scarcity. So this is pretty important and I think this is one of the appealing factors of Bitcoin. So there’s only ever gon na be 21 million bitcoins in existence. Some people say the creator of Bitcoin. You know has his own private little stash or whatever, but they’re, not making any more of it. There’S only 21 million ever to be mined and there’s been people that have lost coins. We’Ve all heard the stories of laptops getting thrown away with a bunch of Bitcoin on them, USB drives, etc, etc. So people really believe that there’s only about anywhere from 15, a 16 million Bitcoin left even the Bitcoin that is left to be mined in existence. So bitcoin is a deflationary currency or a deflationary money, as opposed to an inflationary money which is fiat which we’ll get to later in this video Gold is moderate, just because there’s always more that can be mined, but there’s a lot of effort that goes into mining. Gold, but there’s definitely still gold left in the world. It just is becoming harder and harder to mine and then Fiat. We all know I always like to use. These props is printed money. You know the Federal Reserve can just go in there and you know print hover much they want ever since 1971, when we went off the gold standard, that’s what Nixon did in the 70s. That’S when we basically went from dollars being backed in gold to dollars being backed by Fiat, which is trust, which is the government which is you know, a lot of politics that I’m not going to get into so established history. So this is a big one. So bitcoin is obviously relatively new, some people in the crypto sphere, when they’re talking about Bitcoin they’re, comparing Bitcoin to pre, email or even like infancy of internet days when people are like making fun of email on you know, daily news shows, like you know, in the 90S, for example, it’s like you mean I can send you mail digitally like yes, it’s called an email, so we’re kind of in those stages of Bitcoin low adoption. You know still relatively niche if you will, even though it’s becoming more mainstream, with the returns that it’s had in the 2010s, but still not highly adopted gold. Obviously this is the winner. You know this has been around since forever and then fiat the reason. People say it as a low established history, because fiat still is relatively new. It’S only a few hundred years old, you guys, if that so established, history is low for both Bitcoin and Fiat censorship resistant. This is kind of when we’re getting into the 21st century and we’re getting out of the traditional traits of money, so Bitcoin, obviously, highly censorship, resistant, a lot of channels on YouTube and a lot of other platforms that are getting demonetized. They like to trade or receive and accept Bitcoin, just because it is kind of like the money of the people. If you will there’s no censorship behind it. There have been platforms like patreon that kick certain creators off that don’t let them accept US dollars same thing with PayPal, same thing with other companies as well, and this is all facts: it’s not speculation. Gold is moderate. It can be confiscated so think of the government when they confiscated gold or when they stopped allowing you to purchase more gold. It can be mandated. So that’s why a gold gets moderate and then low fiat is for all the examples I just mentioned. They can kind of turn off your account and that’s it. You know your money doesn’t exist anymore, unforgeable, costliness. So this one without going to technical, the effort it takes to be able to achieve one bitcoin or mine, one ounce of gold – or you know, print fiat. If you will so obviously bitcoin is high, gold is high, fiat is very low, can be created at the print of a at the click of a button. So these last two are definitely 21st century applications we have openly programmable. Obviously bitcoin is that gold is not fiat is not and then decentralized. Gold, moderate gold is being hoarded more and more by central banks, american central banks, chinese central bank’s russian central banks, libya had a ton, we saw what happened there and then fiat is very low. Obviously, fiat is of the central bank; it is the complete opposite of decentralized. So with all that being said, you guys i’m going to show a couple examples of what happens when you start printing too much money in terms of inflation. So, going back to my original point of bitcoin is a deflationary asset as opposed to fiat currency, where it’s an inflationary asset. You can see here the purchasing power of the US dollar since 1913, since the Federal Reserve came into existence, 1913 is just relatively speaking. A dollar, okay and you can see fast forward all the way to 2013. You lost basically 95 % of your purchasing power. 1933 Franklin, Delano, Roosevelt executive order makes it illegal to hold gold coin bullion or certificates. 1944 Bretton Woods is when the US dollar was established. As the world’s reserve currency and then 1971, as I mentioned, Nixon closes the gold window and it’s the end of Bretton Woods, beginning of the modern day, fiat currency system with the US dollar. So you guys, if you’re, not a student of history or a student of politics, you’re not you’re, never gon na understand money. You’Re, never gon na understand how things truly work in the world, and I know a lot of my a lot of my people on a Instagram. They don’t like when I talk politics or whatever. I don’t talk politics, because I love politics. I get. I study politics because that’s how you understand how the world economy works? Okay, so the next slide we have here very quickly is Venezuela’s annual inflation rate. The only reason I use Venezuela is just because, basically, that’s the latest hyperinflation story in the world other than Zimbabwe. For example, you can see here that, basically, from July of 17 to July of 18 in one year, the currency inflated pretty much 48,000 percent and the reason I’m bringing that up is just because, if you go to this original slide here, you can see here with Scarcity, fiat currency is low. You can just kind of print it and make it up as you go along, okay, as opposed to Bitcoin or even gold, for example, and then finally, I just wanted to share this. This is pretty cool. These are old dinars from Yugoslavia. From the early 90s, this was also during like the Weimar Republic in Germany. Basically, hyperinflation took place, and this is kind of what I joke around with with you know these big, you know million dollar bills if you will just because this can really happen to fiat currency, so you can see here in the top left corner with the picture Of the woman that’s a billion dinar bill, then you have like a Nikola. Tesla has got a thousand in our bill on them. You have mihaylo pooping of the pooping institute columbia, university 50 million heading our bill. It’S kind of kind of interesting to see this. You guys so people were literally going to the store with wheel barrels of money. You know to buy basic necessities and that’s after you know, obviously civil unrest and things like that. So, as always, if you want to support the channel, please download the free investing guide. If you do decide to use any of those services, I will get. You know some compensation just to make up for the cost that went into creating that guide. At the end of the day, you guys please share the video with people who may not be money. Literate or understand the history of money or what money is, and let me know in the comments below what do you think the future of money is gon na look like thank you so much and have a prosperous day. You

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