Monday, March 6, 2017

Why gold and bitcoin always survive

Gold measures most accurately the aggregation of people running around  with a handful of very valuable stuff. No joking here.  What is more valuable for money to know about than the transactions of a dominant hand ape using dexterity for pure transport, fundamental human activity.

Gold, not platinum, not silver.  Hold is the right density for an industrial society.  Our ability to move chunks of metal  similar  to gold density and size  is crucial to everything we do. Gold transport is the pilot clock, the pit boss, for transport of highly valuable industrial parts. Gold sets the micro basket size for the advanced industries of 19th century.

Bitcoin has that same coherence to central bank capital rules. Bitcoin is an accounting framework which has matched to the global FX framework, in typical basket size.  A Shannon lock, they won that niche. By Shannon, we mean the bit error variance is one unit of liquidity compared to the measured flow, not one and a half.  If bitcoin gets stuck, it cannot price discover its way out of central bank hedging. It gets stuck in a very lucrative and useful position. Like gold, being stuck, when you are a counter, is like having the atomic pricing clock.

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