cryptoplaza

A reflexion after reading Peter Schiff’s thoughts on bitcoin vs gold:

By tokenizing gold, it gains the advantages of bitcoin or any token in terms of portability, divisibility, transaction speed, etc., while also maintaining the benefits it already had as gold in terms of industrial use, scarcity, and it’s history as a store of value, which according to Schiff makes gold the ultimate store of value asset. 

The only drawback I see is that the custody of the physical gold backing the token will always be centralized, which is a potential point of failure, compared to bitcoin, which has absolute decentralization.

Thoughts on this?

Founder of CryptoPlaza. Delegate at dYdX, MakerDAO (Sky), and AAVE. Member of MetaCartel. Ambassador for Superfluid.

I believe we are not prepared to accept that there can be intangible assets, and we think that value can only be found in physical goods. This argument is constantly repeated by Schiff, sometimes referring to food. In the case of capital, I think being fully digital is a clear competitive advantage, although the social contract and the belief that it has value face much greater skepticism, which is important because, in the end, it is the foundation of a currency.