GoldNRoll Copper ✭✭
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BullionVault has a clear position on this subject, quite different from the trend:
"Still, blockchains won’t solve any problems related to the physical delivery of gold, said Adrian Ash, a research director at BullionVault. The company runs an online platform for retail trading of about $2 billion of metal stored in vaults around the world, including Zurich, London, New York and Singapore. It handles 38 metric tons of gold, more than the reserve holdings of Peru.
"People don’t trust the government, so why would you leave it at the government vaults?" Ash said. "Our customers don’t want it sitting in a commercial bank vault because they could go bankrupt. When we buy it from a bank, we put it in a specialist custodial facility. You need a truck to move it. Blockchain doesn’t solve the truck problem.""
But who says that the self-driven trucks of the future won't be managed by a ledger?
The main difference between gold and crypto is that in a blockchain, one's coins are found in all the nodes who downloaded the up-to-date blockchain. What makes the coins only accessible to one for use, is the private key that secures the "wallet".
This is not the case for gold. One's gold is found only and only in one vault.
So the blockchain versus client-server technology is limited to how the financial transactions are conducted.
In the current banking environment, the transactions are carried out following the ISO 8583-1 (2003) standard. This standard is already ultra-fast and secure, prove that our payments with credit/debit card work very fast.
So why changing it with a blockchain?
I guess here is the trap. The blockchain will not make it more distributed. The banking system is already a centralized system in itself. It will only make it more centralized in one big ledger that is transparent for the governments to have instant access to any financial transaction of every person (node) much faster than today: the governments will have a copy of the real-time transactions... all the time. I don't think the governments will allow the existence of an inter-bank blockchain without having a window to decipher the transactions.
Gold holders have an affinity for privacy. We prefer depositories and vault custodians who keep our gold safe from the banking system. I think the BullionVault position stands here.
As long as a bar of gold can be physically stored in one and only one vault; and there is no such thing as a copy of it in all the nodes of the gold money environment; and we want privacy, the question is: why changing a classic financial transaction system in which for the gold to change owner only the acquirer and the issuer shall agree, with a system in which such transactions are visible and must be approved by the entire network of gold holders of the world?
Being a long time liberty lover, I'm often asked by people questions on cryptocurrencies. They are very surprised to learn how little I care about this subject, as they associate libertarians with cryptocurrencies.
The thing is that talking about cryptos became so monopolizing that I effectively stopped joining events and going out with like-minded persons. I just got bored of this subject.
So that's how I'm asked why I don't care about cryptos, by both libertarians and non-libertarians. I thought why not sharing my answer with the Goldmoney community cafe, since the answer is ultimately related to gold.
The idea is that there are a lot of things in my life and in the world that don't work properly and need improvement. From trivial household appliances that annoy me more than they help me, to large scale social and business services. And there is an infinity of other things in this world that would make my life better but they don't even exist.
My time, energy and circle of influence as a single person are so limited, that I barely make a contribution to the repair and optimization of things that don't work well. Not to mention how little I achieve in creating new tools, services and ideas. With my resources being so scarce, I definitely don't wan't to waste them working on things that already exist and work well.
In the case of the tool called money (tool that provides a set of functions like indirect exchange, unit of account, store of value aso), there is already one that works pretty well and that proved its success during thousands of years of testing: Gold.
I tried to find qualities of cryptocurrencies that Gold doesn't provide but each time I some kinda find something, I also find two shortages coming with it.
So why in the world I would spent time and energy to create, to play with and more than anything, to talk about all sort of cryptos, when we already have Gold that works very well as money; and there are sooo many other broken or missing tools and services that really need our investment. It's just a matter of priorities.
@customer_1 , @Minimons
Are you both located in US?
I am somehow afraid buying high quantities of gold with Goldmoney viewing all these comments with problems.
On the other hand I did several transactions: buying small quantities of gold (up to 200 USD), charging my Euro pre-payed card, using the pre-payed card abroad, buying gold with dogecoin... all went fine. I use a RON debit card to fund with gold (Romanian leu, I live in Romania). All operations are quick by my standards.
The opening of a holding for my company required a lot of papers but it never got stuck. The customer relations in St. Helier Jersey, Jose, was very supportive.
My assumption is that the custodian in Zurich operates like a swiss machine, the GM office in Jersey is better staffed than the one in Toronto (for the number of clients they have) and that the legal work in Europe is less cumbersome than the one in US in relation to gold.
Can GM confirm if I'm right or wrong?
If you want to trade something frequently for gains, better stick to crypto or the stock exchange. Gold is not made for this, the ups and downs are small. Gold really protects you from economic downturn and long-term inflation.
In my opinion Goldmoney is equally good for any quantity of gold, be it 1 gram or 10 kilos.
Goldmoney is not optimized for redeeming physical gold in small quantities imo, the cost is too high. I won't buy 1 ounce of gold with the intention of redeeming a coin middle-term. I would sell the gold to charge a pre-payed card when I need:
Redeeming kilo bars in person would be fine for me.
The thing that I most like about MENE is that it creates a climate of change of the vocabulary around gold jewelry that is very useful to gold.
Before MENE, I used to talk about 14k, 18k and 24k gold.
MENE opened my mind and now I talk about gold and gold alloys. Each time I hear someone saying 18k gold, I say that's not gold. That's gold alloy and it doesn't have the properties of gold. Only pure gold is gold