Thread of intuition around gold based on:https://diff.substack.com/p/whats-gold-for …
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Because kingdoms are run on hierarchies and hierarchies of value greatly magnify specific strengths, kingdoms have an efficient expansionary element to them. Being able to buy shares in the kingdom is far more lucrative than gold which is relatively static.
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That is, why would I want gold to buy shitty peasants with pitchforks when CatCoin allows me to rent Shining Knights wielding Valyrian Steel and a portion of their plunder.
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If things change however...say a country I've previously oppressed with a large population of RoboZombieDogs suddenly now has Technology and my CatCoin can only buy obese retired knights who don't know how to Google...then gold starts to look pretty appealing.
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Unless of course, CatCoin has been the default reserve currency for many years from winning Pet Wars II and due to the invention of the Catomic bomb.
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If I *know* that the people working in these rival kingdoms can still be influenced by CatCoin (perhaps at a discount) I can still influence the direction of human energy without having to get more gold.
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Catlandia can't last forever though. God/Gold is always in the background even if it can't shout over the volume of fiat. This is the "Gold is the only *real* money" argument. Gold is THE background.
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Another view is that Gold is worthless because it doesn't do anything except look pretty. This view seems pretty wrong to me since it's based on an implicit assumption that doing stuff is worth more than doing nothing.
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While this has been true at times (e.g. during the Great Depression people just didn't have anything to do, no way to coordinate, no wars to fight for gold.) it seems pretty obvious that sometimes we should stop doing some stuff.
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Ever play a game where you character go become invincible or "phase out" for a second or so? Usually a move to dodge an attack. Gold is like this, it's a way to prevent being affected by Stuff.
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Gold can be thought of as a "Carry Trade", borrowing at low interest rates to invest at higher returns. Ironically this is similar to Warren Buffet's trading methodology of massive leveraged capital deployment investing in super solid companies. (link?)
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Buffet doesn't need gold as long as there are Obviously Good Buys. If gold is like putting your wealth into stasis, Buffet's strategy is like turning wealth into a literal haven like a house, or a soybean farm. Something people *need*.
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(Possible side thread here where despite physical safety people are "dying" due to loneliness and lack of psychic safety. Physical haven vs spiritual haven. Gold as Jesus, Bitcoin as the new messiah.)
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There's a difference here between a Haven and a Crisis asset. A crisis asset is like Guns... stuff that goes up in value when you expect shit to hit the fan. A Haven doesn't necessarily expect to fight. It tries to weather the storm, not create a new world order.
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A haven asset eventually plans to flow back into a higher yield expansionary asset (like shares in the kingdom) once the bullshit is over. (e.g. price discovery is broken)
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Since the Ark of Gold has limited room, the price of haven assets goes up just like the last few tickets of a concert are more expensive.
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A successful transition from haven <=> reality depends on how skilled one is at gauging the accuracy of the price discovery mechanism. (Due to popularity of index funds IMO everything is blurred and unclear.)
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Bitcoin's value as a now is probably mostly due to the Crowd's inability to distinguish between a haven and a crisis asset. When everyone is rushing to the Ark most people just assume the world is ending.
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Long term it has potential to grow but only because Goldbugs start dying (or change their minds). As of now, it's probably still a crisis asset similar to guns.
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It's somewhat stupid but also very forward looking. It's like those people who bought gallons of water at the start of COVID. If society breaks down to the point where such basic infrastructure is threatened...then you're really underpreparing...
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It *is* true though (according to my middle school science teacher) that the future wars will be fought over water or something.
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Bitcoin is similar to the Ark of Gold in that it exists outside the authority of humans. But because the ingress/egress is small relative to the Ark the tickets can inflate to insane prices.
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From a theoretical standpoint it's also superior in portability and future events like asteroid mining of gold. A counter argument is that other crypto coins have huge market caps as well. It was not created by the God that created the Earth but the Satoshi who Died for Our Sins.
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There is only one God but multiple Messiahs. While God can be trusted as the One and Only, there are multiple Pointing Fingers to choose from which disperses the focus/reliability of the asset.
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From a technical standpoint ETH is pretty interesting. It's like being able to invest in the future World Computer (that currently doesn't really work that well) It's like investing in Google super early amirite, (and not AskJeeves)
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Stopping here. TPR: Ark of Gold. Faerie dragon investor casts phase shift.
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Also, ignore all financial advice from talking cats. If curious about asset rebalancing see:https://breakingthemarket.com/welcome/
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End of conversation
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