Bob Koure
1 min readNov 26, 2020

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Hmmm... where to start?

Gold has value because it's a limited resource. That very source of its value is why tying world currencies to it is a trap (If this is unfamiliar, go have a look at Liaquat Ahamed's "Lords of Finance: 1929 and the Bankers Who Broke The World").

Crypto, on the other hand, has absolutely nothing backing it, until some government steps in and declares convincingly that they'll stand behind it with the power of their economy (i.e. fiat currency). Until that happens, it's worth basically the cost of power to 'mine' it plus speculation - what someone else will pay for it (Investors call this the 'Greater Fool' buying principle).

Now if the OPEC declared that one 'OPEC' dollar was worth on barrel of crude oil, volume adjusted to accommodate how it compared to Penn sweet crude, I might buy it - but it's then tied to a limited resource.

I am not disputing that the US dollar is going to run into some issues, particularly if/when OPEC countries start denominating oil in some other currency either in favor of the Dollar or alongside it.

To the extent this article is a reference to some kind of 'great reset', yeah, that's not happening.

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Bob Koure
Bob Koure

Written by Bob Koure

Retired software architect, statistical analyst, hotel mgr, bike racer, distance swimmer. Photographer. Amateur historian. Avid reader. Home cook. Never-FBer

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