Craig Wright on Bitcoin, gold standard and cash

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In times of rising inflation, some argue that the financial world “back then” with the “gold standard” must be brought back now in order to ease the financial turmoil.

However, there is reason to believe that the so-called gold standard of old was neither a true gold standard nor a financial system to be lauded.

Dr Craig Wright, who is now increasingly known as the person behind the famous pseudonym Satoshi Nakamoto, has previously expressed his views on gold, the so-called gold standard banking system, and the BTC marketed as digital gold. And when Satoshi speaks, we better listen.

What’s wrong with the “gold standard” of yesteryear?

Remember when banks used gold as an underlying financial asset? They never really did, according to Craig Wright. In his article titled “Bank Old Wine Into New Bottles,” he wrote:

This is part of the reason the United States has moved away from the gold standard, or, more correctly, the gold exchange standard. In fact, there has never been a gold standard in use.

What Dr. Wright is describing here is that banking systems that were seen to be gold standard-driven were handing out bills that claimed to be worth far more than the gold they had actually stored. The so-called gold standard was in fact a gold standard.

Why is this important in the context of Bitcoin?

Dr. Wright explains in his article that current digital currency exchanges such as Coinbase act in the same way as so-called gold standard banking systems. On most digital currency exchanges, you don’t really move the digital currency when you trade them there. You only get data entry into the exchange system if you buy or sell a digital asset. We don’t even know if Coinbase, Binance, or Bitfinex actually have the amount of digital assets like BTC that are traded in their systems.

It is the same as the operation of so-called benchmark banking systems. They handed out tickets that were to be backed by gold, but the gold for the most part did not match the amount of tickets and did not budge when the tickets were exchanged between the parties. On digital currency exchanges, Bitcoins and other digital assets also don’t necessarily move when traded between clients on their platforms.

“Coinbase, Square and the other bucket stores that act like banks while flouting laws and removing consumer protection are turning the financial system into a casino, where they act as the gateway to virtual Fort Knox. They keep a digital gold register. But, as with Fort Knox, no one knows what they are holding. Fractional reserve banking started with the same idea, ”Dr. Wright said.

Bitcoin is not digital gold, we know that, but there is still more to discover!

CoinGeek readers already know that BTC is not digital gold. Bitcoin doesn’t have the same attributes as gold and Satoshi Nakamoto never wanted to have them anyway. BTC has much more all the negative sides of gold and none of its positive sides.

Yet BTC continues to be marketed like digital gold. So let’s go with their premise for a second here. Let’s say BTC is digital gold, okay?

However, do we even want a digital gold standard? Taking into consideration Dr Craig Wright’s statements, we have to admit that even if BTC were digital gold, we wouldn’t want a system running on digital currency exchanges that mimic a real digital gold standard, whereas ‘in reality, they are only giving digital. notes instead of actually moving coins when traded on their platforms.

Are BTC and “digital gold promoters” even seeing it? If they ever got BTC to be digital gold, they would end up in the same old banking system as before, when gold was supposed to be the norm but was only a trading norm.

In other words: even if Bitcoin were digital gold, this digital gold trading standard would not heal the financial wounds of the system at all. If people could withdraw all of their BTC from the digital currency exchanges known today, the deception would be visible.

Tickets and cash, cash and bills, what’s going on here?

Now back to the title of the Bitcoin white paper. It says “peer-to-peer electronic payment system”.

Imagine receiving a note from your bank indicating that it is redeemable for gold:

Is the note itself gold? No. Can you use the note to interact with others? Yes. Is the gold out of place? No. Are the notes out of place? Yes.

What is Bitcoin, however? If you are trading Bitcoin, not buying or selling on the stock exchange, but literally sending Bitcoin to another person, have you sent a note claiming to be redeemable for Bitcoin, or have you sent Bitcoin? You sent Bitcoins.

I personally asked Dr. Craig Wright if he preferred a gold standard or a Bitcoin standard. “Neither,” he said.

Okay, so Satoshi Nakamoto wouldn’t want a gold standard, but neither would a Bitcoin standard. It could be confusing for many. In another article titled “Peer-to-peer digital e-money,” the following statements sound like what we usually hear about Bitcoin, but take a closer look at what is actually said there:

Bitcoin isn’t a currency or e-currency right now, but it could be. It is important to note that tokenization methods allow the creation of a national currency in addition to Bitcoin. Such a system would be electronic money.

The truth is, Bitcoin is and was at the heart of an electronic payment system that functions as a peer-to-peer exchange. This is not because the nodes act like peers, but rather because the individuals do.

Far too many people do not understand what I said. At no point did I say that Bitcoin is a cryptocurrency, a currency in any form, or anything from a monetary standpoint other than digital electronic money.

Let me highlight these quotes above for you, because they are important:

Bitcoin

is an electronic money system that works as a peer-to-peer (between people) exchange can be used as digital electronic money itself

It’s probably time for us to discuss money more than gold, currencies, and digital assets. As far as I’m concerned, we are still in the discovery phase of Bitcoin as a treasury system. Even though the “treasury system” may seem easy to understand, it is not. The history of Bitcoin so far is proof of how difficult it is to grasp.

Additionally, take a look at the current discussion regarding Bitcoin as a commodity.

Watch the full interview on Gold, Bitcoin & Hoarding Empires with Dr. Craig Wright:

New to Bitcoin? Check out the Bitcoin for Beginners section of CoinGeek, the ultimate resource guide to learn more about Bitcoin, as originally envisioned by Satoshi Nakamoto, and blockchain.

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