Bitcoin vs Gold
As already mentioned, like gold, Bitcoin has a very limited supply: currently there are only around 16.7 million bitcoins and the total supply of bitcoins has a limit of 21 million. This means that the value of each bitcoin will tend to increase over time.
However, unlike gold, sending Bitcoin is much cheaper and faster: you can send thousands of bitcoins (worth millions of dollars) from New York to London (or from Bombay to Buenos Aires) in a matter of seconds and without cost.
Did you know that in 1933 the then president of the United States, Franklin D. Roosevelt, prohibited the possession of physical gold?
One of the most flagrant phenomena of financial repression in the field of the theft or confiscation of the property of citizens was the prohibition of possessing physical investment gold imposed by the president of the United States Franklin Delano Roosevelt in 1933. The Administrative Order 6102 was signed on April 5, 1933. As of that moment, the possession of “gold coins, gold bars and gold certificates in the territory of the United States” was prohibited.
The Order obliged physical investment gold holders in the three indicated ways -coins, bullion and certificates- to go to a branch of the Federal Reserve to deliver their gold possessions in exchange for dollars, at a convertibility price of 20.67. Dollars per ounce.
The confiscation of gold in the possession of American citizens is nothing more than an example of the nationalization of an asset, in this case the physical gold of investment. The State has unlimited power to nationalize the properties at will because it does so by appealing to the “general interest”.
In this case, it was not strictly a nationalization, since the Federal Reserve was a private bank – all the Central Banks well into the second half of the 20th century were private and responded to their shareholders – and, therefore, we can only talk about “theft” rather than nationalization.