Hello Mish,

Your article on the IRS contacting crypto users has inspired me to ask your views about crypto currencies. I believe that crypto currencies are another confidence game, now 10 years old since the creation of BTC, just as the Federal Reserve notes are a 106 year old confidence game by government. Crypto users claim some advantage of decentralization. Regardless, cryptos are just another confidence game with little practical difference from Federal Reserve notes.

Store of value is of course what makes gold & silver real money and differentiate them from cryptos. I have never heard or read anyone express just exactly where that store of value is held. It is held of course in the use of those metals in other uses, such as jewelry, electronics and various other industrial uses. Cyrptos of course cannot hold such a store of value, as neither do Federal Reserve notes, although at least Federal Reserve notes do have pretty pictures.

The exception would be if a crypto were backed by gold or silver, such as e-gold was some years ago. But then that crypto would have to gain broad recognition, acceptance, and confidence, such as what e-gold had when it existed.

Your thoughts?


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