What Canada Means for Crypto and Gold

What Canada Means for Crypto and Gold. By Doomberg.

A link to the full thread is here. The core thesis is that one cannot have freedom of speech, freedom of assembly, or freedom of religion without the freedom to transact. Robbing a citizen of his or her ability to transact is a devastating punishment, and for the government to claim it has the ability to do so without judicial review or any reasonable recourse is the functional equivalent of totalitarianism ….

Imagine you donated C$50 to the Freedom Convoy before it arrived in Ottawa, an action Trudeau has retroactively decided disqualifies you from participating in modern society. This is not a hypothetical, at least if this Canadian Member of Parliament’s tweet is to be believed:

 

 

Your bank accounts have been frozen, credit cards canceled, and access to your brokerage account denied.

Further, imagine you have accumulated some Bitcoin in a cold storage wallet (i.e., on a flash drive in your possession), carefully ensuring that it is outside Trudeau’s reach. How are you going to pay your mortgage, car payment, tuition expenses, or buy groceries with it? The answer is you can’t. …

At a time of utmost need, cryptocurrencies have proven they are not money. If they can’t be used to transact in the main, they’re just bits of data on a flash drive. Crypto proponents will argue that off-exchange peer-to-peer transfers are still possible and this enables bartering, or that you could move to a country that more widely accepts cryptocurrencies as payment. … If that is all you have left, it is clear how much the government has taken away from you and how feeble cryptocurrencies are as a hedge. …

Unfortunately, we must also admit the same analysis holds true for gold, a conclusion that runs opposite to our previous thinking on the topic. However effective gold might be as a store of value, if the only available functions during a time of personal crisis are to facilitate bartering or fleeing, it isn’t money. Gold bugs and crypto advocates alike should be aghast at what Trudeau has done and at what those in the US Treasury undoubtedly have in store for Americans.

And therein lies the critical conundrum: alternative forms of money require a benign government to allow for their proliferation, but a benign government negates the need for alternative forms of money.

You can still use a gold or silver coin to “buy” things almost anywhere, any time. You might have to wait while the other party figures out how much the coins are worth to them, but it will work.

But nowadays everyone makes nearly all their payments via the banking network, which moves credits between your bank account and those of employers, shops, etc. The friction costs of being excluded from this system are enormous.

Given the potential for the ruling class to take this away from us, maybe we should use cash more? Most of the population now has good reason to distrust the banking system.