The post The Snobs’ Attack On Gold Is Failing, Thanks To Bitcoin appeared on BitcoinEthereumNews.com.

The classical challenge to fiat money is gold. Populations wary of sovereign or bank money-printing—or taxes and regulations—pile into precious metal, leaving the fiat without volunteer users and high and dry. This was the way of the world for centuries, millennia. In the United States in the early 1930s, the American people, tiring of income tax increases taking rates absurdly higher than they had ever been in peacetime, property tax increases far and away the highest in the nation’s history, and exceptional tariffs that made everything more expensive, said forget it and pushed into gold, selling their United States banknotes for it, at $20 per ounce (the official price). The president, FDR, found this so very objectionable and outlawed the private ownership of gold. A better solution would have been to go easy on the tax-rate levels. It would have been enough to dispatch the Great Depression while retaining classical money. Today people still do this. Hence gold zooming up past $4,250. It was at $275 in 2000. Microsoft stock sure has done well in the 21st century. Not as well as gold, though. But today people do something else too. They go into a new gold alternative, which is therefore a new fiat alternative, Bitcoin in a word although encompassing the cryptocurrency universe as well. By the 2000s, the fiat-gold contest had become long in the tooth. After 1971, gold had no official monetary role for the first time basically ever in the world. For forty years we got lectures on how crank-like gold is—its advocates are “goldbugs”—and how professional fiat money is, via the ministrations of credible, credentialed staff at the Federal Reserve and in the economics establishment broadly. The nature of this emasculation of gold was social. The demonetization of gold that held from 1971 to roughly…

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Filed under: News - @ October 18, 2025 4:29 pm