Central Bank: If The Entire System Collapses, Gold Will Be Needed To Start Over

[ReiMomo]

it is golden era of consumers, more products, more food and more and more.
even if is not needed the system is build to produce more and more.
now system is broken not sure the gold will fix it

There is a stagnation in the market and how to revive that depends upon individual government, many government hold gold as reserves and in times of crises they will be using that, will it revive the market is to be seen.

Exactly. Gold plays a big role in the economy. Especially on that disaster, the central bank's entire systems collapse. I think gold is the only way that they can be able to recover on their losses because even in a long period of time, The price of gold will never drop down but will continue to increase because it is very rare and so hard to find. Unlike bitcoin it only needs a massive adoption in order to reduce the supply, fewer supply means makes it expensive in bitcoin price.

[1Referee]

I think they'll withdraw their gold before the collapse unless they're too stupid to do that.

Their first mistake was to distribute their Gold geographically. Their second mistake will be when their request to have the Gold withdrawn be denied.

I'm pretty certain that we're already at a point where countries are afraid to request their Gold to be withdrawn, because that indicates distrust and you don't know how the other side is going to react to that. In that regard, they rather continue with the promise of owning x amount of Gold, where they can sell that promise to another sucker entity in the worst case.

I'm sure there are a lot of economical factors that play a role of importance too, because you can somewhat force other countries to not walk over you because you own a certain percentage of their Gold reserves. The more Gold you allow to be withdrawn, the more you put yourself in a disadvantageous position.

[meliodas]

Gold is old fashioned way in starting over. We already have cryptocurrencies and I think with their technology called blockchain, it is enough for us to start over with a more advanced type of technology and with the power of decentralization. People love to be independent and to be more advanced so cryptocurrencies are much better compare to gold.

[beerlover]

Well, bitcoin will be needed to start over as well.

I doubt "entire system collapse" will be a reality, economy is bigger than just numbers, it is also power and the world of rich and powerful people will not let the system collapse because that would mean they are gone as well, if wall street for example collapses then every single stock or company that was part of wall street will be bankrupted as well.

You know why USA printed 800 billion dollars out of thin air in 2008 when their whole deficit was couple trillion dollars? Because if wall street banks collapsed right there, then there would be THOUSANDS of companies going bankrupt in a single day with MILLIONS of jobless people out in the streets having nowhere to go or having any money to spend. USA would turn into Venezuela very quickly.

[Silberman]

About Bitcoin as a currency, the problem is that the government would not allow Bitcoin to be used as a legal currency. Except something "big" happens, fiat would not disappear anytime soon. Also, improvements (technical) need to be made before Bitcoin can on-board the majority of people on earth.

That big event is coming, we do not know when or what will be the exact causes of the next economic crisis, but what we know is that the system is unsustainable and sooner or later it must fall, at that point it will be irrelevant what the government wants or allows, people will be in survival mode and if that means using this weird currency called bitcoin they have been making fun of for years then that is what they will use regardless of the wishes of the government.

[JeffBrad12]

About Bitcoin as a currency, the problem is that the government would not allow Bitcoin to be used as a legal currency. Except something "big" happens, fiat would not disappear anytime soon. Also, improvements (technical) need to be made before Bitcoin can on-board the majority of people on earth.

That big event is coming, we do not know when or what will be the exact causes of the next economic crisis, but what we know is that the system is unsustainable and sooner or later it must fall, at that point it will be irrelevant what the government wants or allows, people will be in survival mode and if that means using this weird currency called bitcoin they have been making fun of for years then that is what they will use regardless of the wishes of the government.

We don't even know whether when the crisis happening or the entire economic system collapses bitcoin will still hold the value or not. Bitcoin is always indirectly affected by such event and the Central bank saying Gold will be needed to start over is because they believe that gold will hold its value since it has always been like that since the ancient times. But, in my opinion when crisis happen that's when food worth more than gold I guess. So gold will be practically useless.

[blckhawk]

It depends on the time the collapse happens. If the collapse happened at a later time when digital currencies are at its peak and bitcoin would be one of them, bitcoin may also be hoarded by the people. It would be considered valuable as its demand is higher and is a good investment, alongside with gold. However, if crash would happen sooner than we think, people may not still hoard bitcoin, instead gold would be the best option or other rare materials because it's more necessary and valuable for people.

[Oneandpure]

If this happens, then our fiat is Bitcoin backed. Meh, might as well go with Bitcoin instead.

Yep, go ahead and store your Bitcoin in your own wallet. That's the best way to store Bitcoin IMO.
The same thing can be done with gold. You can store physical gold by yourself or assign 3rd party to store it for you in a vault.

About Bitcoin as a currency, the problem is that the government would not allow Bitcoin to be used as a legal currency. Except something "big" happens, fiat would not disappear anytime soon. Also, improvements (technical) need to be made before Bitcoin can on-board the majority of people on earth.

Gold and bitcoin both good option as saving assets if you have much money, many people have ready for saving money with their family education in the future and make mistake with saving money have lower value at the future with inflation, now better save your money with bitcoin or gold assets because give the same value although have holding for long time.

[NathanJB]

If this happens, then our fiat is Bitcoin backed. Meh, might as well go with Bitcoin instead.

Yep, go ahead and store your Bitcoin in your own wallet. That's the best way to store Bitcoin IMO.
The same thing can be done with gold. You can store physical gold by yourself or assign 3rd party to store it for you in a vault.

About Bitcoin as a currency, the problem is that the government would not allow Bitcoin to be used as a legal currency. Except something "big" happens, fiat would not disappear anytime soon. Also, improvements (technical) need to be made before Bitcoin can on-board the majority of people on earth.

It is best to have Bitcoin and gold at the same time. And in my preference, it is best to store those Bitcoin and gold yourself. The problem with third party is that you never know until when they can be trusted, or until when they are still there. Take note that being duly registered or licensed is not a guarantee. I don't trust third parties.

[mu_enrico]

That big event is coming, we do not know when or what will be the exact causes of the next economic crisis, but what we know is that the system is unsustainable and sooner or later it must fall, at that point it will be irrelevant what the government wants or allows, people will be in survival mode and if that means using this weird currency called bitcoin they have been making fun of for years then that is what they will use regardless of the wishes of the government.

Ah, the doomsayers' arguments. You should take into account:
(1) the probability for a severe economic crisis;
(2) the probability for (1) followed by a severe political (power) crisis;
(3) the probability for (1) & (2) and all the chaos caused, somewhat drive Bitcoin usage.

You should read beerlover arguments up there.

now better save your money with bitcoin or gold assets because give the same value although have holding for long time.

I'm a hard-boiled dude. I don't need any savings.

PS: CryptoTalk bitches, please stop quoting my comment except you really want to address specific things.

[deisik]

You know why USA printed 800 billion dollars out of thin air in 2008 when their whole deficit was couple trillion dollars? Because if wall street banks collapsed right there, then there would be THOUSANDS of companies going bankrupt in a single day with MILLIONS of jobless people out in the streets having nowhere to go or having any money to spend. USA would turn into Venezuela very quickly

Your words are going to fall on deaf years

The reason for this is quite simple, though. To see things in their true light and proper perspective, you have to be an expert in these things, and while it is a prerequisite for drawing correct conclusions and inferences, it is still not a guarantee of their correctness because you may lack some important information (like pieces of a puzzle). Little needs to be said that the majority of people lack both such expertise and such information. But that doesn't prevent them from thinking they always know better, of course

PS: CryptoTalk bitches, please stop quoting my comment except you really want to address specific things.

Welcome to the club!

[LoyceV]

The most interesting part is that central banks seem to have totally forgotten what the value of paper money was once based on: gold!

So first there was gold, then they made paper, now it's not even paper anymore but just numbers on a computer, and instead of going back to using gold to back this up, they want to keep inflating the fiat bubble until it pops first! Then and only then they go back to the basics, and if that happens you can just wait for another fiat bubble to be created.

It's kinda terrifying to know DNB holds only 350 euro worth of gold per citizen. Meanwhile, the government debt alone is 68 times higher! No wonder they love fiat money so much.

[NeuroticFish]

The most interesting part is that central banks seem to have totally forgotten what the value of paper money was once based on: gold!

Their lack of imagination is also terrifying.
In 500 years people will wonder why in the ancient history people relied, for store of value, on something with no clear and measurable scarcity.

Gold can still be a backup, but only for the near future. But on the other hand maybe banks will not even live for too long, or at least not like this.

[alyssa85]

The most interesting part is that central banks seem to have totally forgotten what the value of paper money was once based on: gold!

There was a Japanese Emperor who lamented during a drought that it was no use having pearls and gold as you couldn't buy anything with them in a genuine catastrophe.

The US dollar is the primary currency because the US is self-sufficient in food and has a powerful military. That's all you really need.

[kooboat]

There comes a time where there would be no need for money and no value for silver and gold from anyone. The system of barter trading just as it was recorded in the history books would resurface. Life is full of times and seasons, nothing would certainly last forever as new trends would always dominate.

[Ejanend]

I think they'll withdraw their gold before the collapse unless they're too stupid to do that.

Their first mistake was to distribute their Gold geographically. Their second mistake will be when their request to have the Gold withdrawn be denied.

I'm pretty certain that we're already at a point where countries are afraid to request their Gold to be withdrawn, because that indicates distrust and you don't know how the other side is going to react to that. In that regard, they rather continue with the promise of owning x amount of Gold, where they can sell that promise to another sucker entity in the worst case.

I'm sure there are a lot of economical factors that play a role of importance too, because you can somewhat force other countries to not walk over you because you own a certain percentage of their Gold reserves. The more Gold you allow to be withdrawn, the more you put yourself in a disadvantageous position.

Gold is indeed an expensive asset and losing it to some other country can cause trouble to the giver. However, I don't think that we will be going back to those days when gold was the medium of exchange. For me, it is just a jewel now and there are only few countries who really have good amounts of it. The future lies in digital gold, bitcoin. So it would be best to focus on it for improving economy.

[Leyss]

Paper money replaces not only gold, but also any product, any material values ​​that can be exchanged in the state. Therefore, paper money at their face value is stamped on the amount of increase in gross national income of the state for a certain period.
I do not quite understand the reason why the Bank of the Netherlands is concerned about the possible general collapse of the global economy. In my opinion, this is too much exaggeration. Problems in the world economy have always been, however, they are completely solved by conventional methods.

[deisik]

The US dollar is the primary currency because the US is self-sufficient in food and has a powerful military. That's all you really need

I don't know what you mean by "primary currency" here, but you are thinking in the right direction

Countries that are more self-sufficient in major items (like food industry and other such industries) than the rest of the pack don't need gold to back up their currency because it is already backed up by the strength of their economy. You may ask a question as to why the US is hoarding so much gold then? The answer is quite simple though

They can and most certainly will use gold as a weapon of economic destruction against weak countries which in case of a severe crisis will have to rely on gold in their economic affairs (maybe even for propping up their currencies) as it happened with the Soviets in 1970's that had to import goods for gold

[Wintersoldier]

Paper money replaces not only gold, but also any product, any material values ​​that can be exchanged in the state. Therefore, paper money at their face value is stamped on the amount of increase in gross national income of the state for a certain period.
I do not quite understand the reason why the Bank of the Netherlands is concerned about the possible general collapse of the global economy. In my opinion, this is too much exaggeration. Problems in the world economy have always been, however, they are completely solved by conventional methods.

Not that much exaggeration, actually conversion of world currencies to one universal crypto will induce negative effect to the economy of the country. No standard will determine the price and economy, if one country will have the currency of the world, they couldn't bare to handle the changes abiding these. In that regards, if the entire system collapses, crypto will not be the most accurate solution, it is still the fiat by each and every country.

[sirminesalot]

Gold is old fashioned way in starting over. We already have cryptocurrencies and I think with their technology called blockchain, it is enough for us to start over with a more advanced type of technology and with the power of decentralization. People love to be independent and to be more advanced so cryptocurrencies are much better compare to gold.

we cannot deny if gold is indeed a good asset in investing from the past and the system and the benefits of gold investment are profitable but as technology develops there are certainly breakthroughs or ideas that can invest more than gold and maybe for that investment with crypto or blockchain currencies. it is a breakthrough that uses the progress of time and technology and can be used by all levels of society, of course