Gold is the Real Deal

I know steemit is full of cryptocurrency bugs but I think gold bugs will win in the end. Both cryptos and gold are competing to be the next money after the central bank scam known as fractional reserve banking unravels and destroys a lot of wealth.

Gold's only weakness is bulkiness and there are a number of known solutions to this problem. Cryptocurrencies on the other hand have a number of weaknesses some of which are insurmountable. Take for example the ongoing government crackdown on cryptos. Depending on the intensity of governments resolve to crush cryptos, this can very easily be a fatal blow to cryptocurrencies.

Cryptos also frequently suffer conceptual deficiencies. Take our steemit for example. The promise was to get paid for posting quality content but it so happens that this is not the case. There are whales here who connive to up vote each other or themselves into riches over brief and trash content. They hardly go out of their circle to up vote quality content from other steemians. The many votes from the minnow masses amount to almost nothing when compared to one vote from a whale.

So there is discontent in the steemit house. The epic battle @berniesanders vs @haejin is still raging. Other cryptos including bitcoin have their own conceptual deficiencies which may prevent them from winning the battle against gold.

Gold has only one obstacle to overcome. That obstacle is the gold futures market. Wall street has been gaming gold in the futures market for so many years by massively short selling uncovered gold futures contracts. It is easy to see how gold will one day overcome this massive price manipulation scheme. As the demand for the physical precious metal increases, investors and traders of the precious metal will begin to demand delivery from their futures contracts.

An uncovered futures contract has no gold allocated to it but it trades as if there is some gold backing it. The situation at COMEX is that the amount of gold represented by uncovered gold futures contracts significantly exceeds the amount of gold COMEX has for delivery. COMEX will easily default on delivery if investors and traders demand delivery on just 15 - 20% of gold futures contracts trading at the COMEX. The true value of gold will then be revealed.

A default at the COMEX is what gold has been waiting for to reign again as money. It is not all bad news for cryptos. They will complement gold and help it reign as money. But they cannot outshine gold.