Bitcoin Forum

In 1934, the world's top criminal banned private gold ownership

https://en.wikipedia.org/wiki/Gold_Reserve_Act

Basically, gold was robbed from people in exchange for 35 centralized scam tokens called US dollars ("USD"). The gold was then used to finance aggression against Germany.... :(

Today China has banned BTC/Fiat exchanges, which is basically the 21st century version of the gold reserve act.

It is a desperate attempt to keep the fiat scam ponzi system alive. However banning BTC is much harder. Even full prohibition would be very hard to enforce.  And HODLing will be rewarded. Have a look.

Pre-1934 gold price: 20$
Gold price at time of ban: 35$.

After the ban, gold price went up, in 1976 it was already $120. Gold prices were kept low by heavly manipulation for decades, which is not possible with BTC, that is why central banks are so scared: They do not own large amounts of BTC, which they can use to keep the price low.  ;)

Gold price today: 1300$

So, BTC price at time of ban: $4200

Good news for BTC owners. Unless you wonder: "Is China also preparing for a big war?"

This topic doesn`t belong to the speculation board,it should be moved to Economics.
Gold prices were not kept low because of manipulations.They were low because the central banks were not printing money and creating inflation.I think you are wrong about the year.It`s not 1934,it`s 1944.
"The gold was used to finance aggression against Germany"-No somment.... :(
China is NOT preparing for a big war and the cryptocurrency ban has nothing to do with China foreign policy.

Is there an graphic of gold vs value corrected by inflation?
In some decades the purchase value of US dollars can fall greatly.

I think the 1970's or something were a period of high inflation.

i still don't know who banned bitcoin though :D

all i can see is ICO being banned in some countries and a couple of services in China being closed because they did not have any license. (a business without a license must be closed).
where does "bitcoin" ban comes in i still don't know.

Bitcoin is not ban. So we don't know where you get that idea. Only ICO's get banned by the Chinese government. So please be careful of what you are posting here. And this is not another thread of Gold vs Bitcoin again. There are already multiple threads around. You should have use the search function before opening one. And China is not preparing a war, on the other hand, they are just trying to regulate bitcoin and put everything in order.

Bitcoin itself technically has not been banned. It's just certain exchanges that have been stopped from continuing operations. Furthermore, Bitcoin is used globally, not just in China. This means that it is also heavily affected by those who use it in different countries.

It happens based on the users self interest towards the asset. In the past gold in unexpected time got more popularity as an investment and reserve for value storage. This has been now surpassed by bitcoin though it hasn't gained a physical state same as gold which has a commodity or material state.

It is always good to look at history for lessons, but this seems like such a bizarre connection to make. There are very few parallels to the modern internet-borne cryptocurrency and trading laws around gold set up in 1934 when the world was gearing up for a global war. Most people know about alcohol prohibition back then, that is probably a simpler analogy to the current bans.

Maybe history is failing me, but I think the gold ban was worst since the government got the gold for themselves, and with the ICO ban and the exchanges suspensions, the government didn't really kept anything for them. Also it wasn't really a ban on bitcoin, but again, if they do that, they can't really confiscate bitcoins from users.

I think centrals banks are a little scared, because they can't really control BTC, and all the options it provides to users. I'm not entirely sure if they don't own some decent amounts of BTC, or if they wont actually do it. Most of them wont make it illegal I guess, they will just try to find a way to profit from it, like regulating exchanges and charging taxes from those that own BTC, as they already do from those that own gold.

Interesting history lesson, but luckily not close to what we are seeing now.



I got bad news for you, gold has not even closely been surpassed by Bitcoin as a store of value.

I also got good news for you, Bitcoin still has a lot of room to grow past gold! ;)

It's all right, you say but you forget about the fact that during the ban on private ownership of gold is a lot of people tried to save it for the future. At that time gold was confiscated. It was a criminal offence. Bad if we see something like that in relation to bitcoin.

I have no doubt that an US government ban on Bitcoin will happen. It has already happen in China. The ban is not indeed about possession of Bitcoin, but I think that it is only a matter of time that both China, US and probably Europe too, put bans on both exchanges and possession itself of bitcoin demanding that people deposit their Bitcoin on government controlled addresses. Of course it's pretty stupid since most people will not do that but I can see a price crash.

The good news is that after the price crash they will have nothing to scare people away from bitcoin anymore and it will keep going up without nothing to stop it.

https://coinatmradar.com/blog/wp-content/uploads/2017/07/wkTyyaV.png

This graph compares GOLD, USD and Crypto, obviously Crypto (bitcoin) is a winner. When more and more people will join bitcoin community than government have no option other than to just legalize the use of bitcoin and its trading.

People are being more sensitive towards their personal privacy and financial freedom, people don't like to just invest their hard earned cash for 5-10% P.A. interest in usual banks and if they don't store their money in banks than that can be a big chaos for banks. That's why they are completely against bitcoin and government is supporting them...

China is banning bitcoin because they want to launch their own centralized blockchain which will be proved as failure really soon, so I think they will just lift all these ban on ICO and trading platforms because they can't force their citizens to stop using bitcoin as use of bitcoin can't be banned by any government at all  ;D

Gold stood 6000 years that says much about it I think.

Exactly. And ICO's are no where near bitcoin, they are altcoin ICO,  Altcoin. So at worst you can roughly consider it has an ban on altcoins but it's no where near ban on bitcoin.

There was a reason for the ban on holding gold. At that point, fiat currency notes were actually backed by gold. So it was not possible for a country to print currency unless it got additional gold. No such problems now.

This graph seems like it's wrong to me when it says "Sovereign (Government Issued)". If it's government issued then how can it be sovereign?

If it's government issued, it's a bad thing, so the red box is misleading. I think something is wrong there. It should just say "Government issued" and the "low" box should be green to show that it's positive that it isn't government issued.

There are few countries that have banned bitcoin for their citizens, trade it and you may be ended in jail.
https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
Yes, China didn't ban bitcoin, but their act seems like want to, fortunately they just want to regulate cryptocurrency to avoid huge amount of money sent abroad, illegal transactions, and all of their reasons. But I don't think they are preparing for a big war, only because they want to regulate exchanges and crypto.

Despite all the flak fiat gets, being government issued is not necessarily a bad thing in itself. It's a system that has worked for many centuries, and while it suffers from all the bad of centralization it arguably leads to stability and prosperity if handled right. For the moment being fiat is still the most trusted kind of money, so for the general populace being government issued is a positive.

Everything we see now happening in China is just a temporary measure. It might take some time, but we will definitely see the Chinese exchanges come back to the crypto industry ~ China is just preparing its license system.

I am quite sure that it was something they were planning to do already, but due to the massive growth this year, it has forced them to do everything they did recently in an attempt to halt the crypto growth till China is ready.

People wish that China would end up withdrawing itself from the crypto industry completely, but that's not going to happen. I just hope that regardless of them staying, people will just stop taking China so serious ~ stop that.

China doesn't contribute to anything but market crashes.

Part of the value proposition of bitcoin is that it isn't government issued. If it's government issued, then it's centralized. What would the point of bitcoin be if it was issued by a government instead of an algorithm? the whole thing would be nonsense, just e-fiat (which is what they want).

Bitcoin has value because it isn't government issued therefore that chart is misleading. All governments in the long term fail, a hashing algorithm never fails. The rules stay the same and open source for everyone forever.

First of all China did not put a Ban on Bitcoin, They just imposed ban on ICO probably due to reasons like it they were creating scams, controlling of ICO was becoming a tougher task, tackling finical problems and much more. But this is no way way can be compared to Gold ban as there is no ban on Bitcoin yet, so such speculations are base less, moreover China being the epicenter for cryptocurrency mania will come back with better regulations and rules.