What would be easier to ban for the US Government, Bitcoin or Gold

[longandshort]

Now for the real story...
https://www.usmoneyreserve.com/blog/did-fdr-confiscate-americans-gold-in-1933/
"Two final points: Contrary to conventional wisdom, not all gold was subject to E.O. 6102. Gold coins with numismatic value were exempt, as was gold used in manufacturing, dentistry, ....

You do realize that the entire purpose of that was so that FDR could use expansionary fiscal policy to stimulus the economy, right? In those days, the treasury had to hold a ratio of gold for every $1 printed, and since people began to redeem their dollars for gold, it reduced the amount of gold in circulation for the Treasury to print bills with.

How is Bitcoin similar to this? It isn't at all. The dollar is not tied to BTC, BTC is tiny, and there is already many forms of "competition" that the dollar deals with.

 

[Same Lazy Element]

You do realize that the entire purpose of that was so that FDR could use expansionary fiscal policy to stimulus the economy, right? In those days, the treasury had to hold a ratio of gold for every $1 printed, and since people began to redeem their dollars for gold, it reduced the amount of gold in circulation for the Treasury to print bills with.

I don't think that's how it went, though I am not a great student. IIRC, The Gold Reserve act authorized the President to set the price of the gold by proclamation (imagine that!) and FDR immediately hiked it from $20 to like $35. Most people who where forced to accept paper money for their gold would be losing ~40% of the value based on the "exchange rate". So regardless of the good intentions, for practical purposes it was a confiscation.

How is Bitcoin similar to this? It isn't at all. The dollar is not tied to BTC, BTC is tiny, and there is already many forms of "competition" that the dollar deals with.

BTC is undoubtedly different, primarily by virtue of it being virtual. It's disinflationary qualities are very much secondary. It's apparent that the primary fear for the policy makers is its use for evasion of various financial controls. It's more visible when you listen to EM central bankers, but even the Western bankers are getting uneasy.

PS. I had a friend who had to flee his country and had to stuff gold goins up the ass. Gives a new meaning to the phrase of "tight financial circumstances". So say what you want about crypto, but the fact that you can transport an unlimited sum of money across the glob by simply memorizing a key is pretty valuable.

 

[TimtheEnchanter]

I am fully aware of the difference; but the Government hates competition and while I do not think Gold would again be confiscated like in 1933, BTC might be meddled with. BTC is a threat to Dollar as a reserve currency. Why else do you think the Chinese are mining it heavily thus promoting BTC?

 

[longandshort]

I am fully aware of the difference; but the Government hates competition and while I do not think Gold would again be confiscated like in 1933, BTC might be meddled with. BTC is a threat to Dollar as a reserve currency. Why else do you think the Chinese are mining it heavily thus promoting BTC?

This thesis is the one I’m countering. BTC is not a threat to the dollar as a reserve currency. BTC is more like a commodity or a collectible than a currency.

 

[longandshort]

IIRC, The Gold Reserve act authorized the President to set the price of the gold by proclamation...

PS. I had a friend who had to flee his country and had to stuff gold goins up the ass. Gives a new meaning to the phrase of "tight financial circumstances". So say what you want about crypto, but the fact that you can transport an unlimited sum of money across the glob by simply memorizing a key is pretty valuable.

I agree that the negative externalities made it feel like a general ban on gold and was challenging and unfair to investors who begun to hoard gold in the aftermath of the Great Depression. This is why most countries do not tie their currency to a commodity (and those that try to maintain some kind of peg end up losing — re: gbp and ERM).

My point, however, is that BTC is not tied to USD. While governments want to control money supply and effectively extract tax revenues, the argument that “the US government wants to shut it down because it is a threat to the reserve currency status of the USD” is what I think is dumb and banal. BTC definitely has some interesting features, and an allocation to cryptos and their tangential technologies is probably warranted. But that’s not the same as sovereign currency.

A good chapter in history that rhymes with BTC is the wildcat era of banking in the 1820-1907, which ultimately led to increased regulation and a central bank.

 

[Daxtrader]

Check out the coinbase subreddit. So many complaints about account hacked, fraudulent transactions, etc. It took filing complaints with 4 agencies before a friend was reimbursed for stolen bitcoin. Before that coinbase said sorry can't do anything about it and basically stopped responding.

 

[murray t turtle]

The gov didn’t ban gold lol— you need to review your history. Why would the government ban BTC and not the Euro or GBP lol? By your logic those would have been the first to go.

%%
LOL; certain gold coins were exempted.
MUCH easier to ban bitcon for the same reason they banned moonshine whisky. More likely= is IRS changes \taxes the bitcon market in the USa
.[You may know something about the Euro i dont/LOL]

 

[RainMaker3000]

You can never "ban" anything, you can outlaw ownership of it, then you'll have the lawless owning it, I can outlaw the breathing of air but you'll still breath, get the point....

 

[RainMaker3000]

 

[Zithiel89]

It seems to me that there is no point in giving anything up at all, because the dollar and gold correlate well, creating, if I may say so, a healthy competition in a market that is always balanced and accurate. And bitcoin is a separate asset altogether, unaffected by the general economic situation, what sense does it make to give it up? It seems to me that some strong bans or restrictions may lead strictly to some kind of market destabilization or strong speculations, and for that the U.S. definitely did not get compliments. The situation in this country is not the most favorable lately, so I do not see the point in creating additional problems and difficulties.