Why are the Rich going Gaga Bitcoin?

The simple but ugly truth you need to know about Bitcoin Investing

Photo by Joshua Sortino on Unsplash

The idea of building wealth over time is simple. The rich have been doing it all along.

They look for assets that have scarcity and desirability

Rich invest in prime real-estate like city center properties as city centers don’t grow, unlike cities.

Next, they invest in precious art, Collectibles, and vintage items.

All of these are highly scarce and desirable!

The bulk of their portfolio consists of assets that are scarce and desirable by others.

Now you must be wondering, why gold is missing on this list!

That’s the big trillion-dollar question you see…

As you know, Gold is pretty scarce. Unlike fiat currencies( which never stop inflating ), gold is highly desirable and easily divisible, and highly durable.

So ideally, the rich should be hoarding tons of gold, isn’t it?

Unfortunately, they can’t, for a very practical reason.

You see, Govts don’t like gold.

They don’t like their citizens hoarding gold and pumping up its value.

Govts hate GOLD as its scarce commodity money that can bring down their control over your wealth significantly.

So, Govts have killed Gold price by simply outlawing ownership of more than a few kilos of it, which essentially affects the Rich and is easy to enforce as it doesn’t affect the poor.

In the USA, they banned gold ownership beyond 1 kilo from 1930–1965.

In other countries, since the 1900s, there is an informal ban on holding significant gold. (except for Switzerland, which is why Switzerland is one of the richest countries to date as they respect the rich and don’t aim to steal their money illegally)

Governments, in general, simply seize gold ( using various mechanisms and laws ) if they find large stashes of gold and they sell it for fiat currencies.

This has two effects

One, it suppresses the price of gold

Two, it inflates the value of their fiat currencies.

This is why gold doesn’t work for the rich, but Bitcoin does!

Bitcoin has all the good properties of gold like

it’s scarce, it’s divisible, it’s desirable and durable

but unlike Gold, it’s unseizable!

Bitcoin is simply controlled by a long password that you can write and store somewhere safely, even if you hold millions of dollars of worth of bitcoin!

Bitcoin can cross borders at a click of a button, and no govts or banks are needed to run it, nor can they stop it.

Apart from this, bitcoin is a heavily decentralized network with no single party controlling it, which means it cannot be brought down by shutting down a server.

Bitcoin can only be brought down by bringing down complete internet across the globe, as you know, that’s just not possible!

This is the biggest use case of bitcoin

Bitcoin is the new digital gold, but without borders, without fear of confiscation or arbitrary regulation, plus bitcoin can make you lots of money, as the rest of the world wakes up to this truth!

The New World Order!

Democracies across the world are increasingly looking unstable with unrest rising against the wealthy as wealth & income disparities are at historical levels never seen before in human history.

The rise of ‘Populism’ is threatening the rich world, and wealth redistribution is the only outcome of this as capital gains taxes are no longer effective ( as most rich never sell their assets ).

As most of the world’s wealth is stored in Real Estate, Stocks, or Bonds and very little in Gold, it’s easier than ever to achieve this objective of ‘wealth redistribution.’

Bitcoin is the only lifeboat that can save the rich from this, and that is why the rich are going gaga about Bitcoin. 😍

So will you join the bitcoin party ??

Check out our new platform 👉 https://thecapital.io/

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Why are the Rich going Gaga Bitcoin? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

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