Why Bitcoin Is Not Digital Gold (w/Roy Sebag)

Roy Sebag, CEO of GoldMoney, talks with Stephan Spears of McEwen Mining about what actually separates gold from bitcoin. Sebag notes the physical space, energy, and capital required to profit from investing in gold versus bitcoin, and he compares the corporeal qualities of the different assets. This clip is excerpted from a video published on Real Vision on July 3, 2019 entitled “No, Don’t ‘Drop Gold.’”

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A collection of interviews and documentaries focusing in on the famous store of value. The series takes a 360-degree view of the precious metal by examining gold’s role in history and its proper place in modern investment portfolios. It interviews experts in diverse fields including mining, investment management and bullion storage.

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Why Bitcoin Is Not Digital Gold (w/Roy Sebag)
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Transcript:
For the full transcript visit: https://rvtv.io/2FCyKDj
ROY SEBAG: Yeah. So, the way I look at the world in terms of an economy is I actually like to use the word ‘cooperation’, human cooperation. And at the end of the day, the reason I think that we’re able to make predictions and cooperate is because the laws of nature, laws of physics, whatever you want to call them, are immutable. They’re irreversible, and they’re immutable. And they never change. And because they never change, we’re able to essentially observe, measure, predict, and repeat various activities between each other as we seek to cooperate and achieve prosperity. Now, in that regard, there is a fundamental distinction between the things that are external to my mind, that are corporeal that I can ingest through my sense perceptions, that I can see, that I can touch, that I can hear, that I can taste, and things that are entirely an abstraction, where I’m employing my memory, the interior of my mind, and perhaps a language like mathematics to communicate something to me or to you. And where this ultimately manifests is in the relationship between the thermodynamic relationship of energy and entropy. And so, what we find is that things that are from the mind that are abstractions, or of memory, generally don’t last. Their ideations, their trends, very academic term, but logical pluralism, there is no definite truth. Whereas things that are of nature are the load stars, they’re the Polaris that allows us to cooperate. They’re the sun, so to speak. Now, when it comes to the difference between an element which is corporeal, and something like Bitcoin, what you essentially have to understand is that the element doesn’t need anything other than the laws of physics to exist. Whereas Bitcoin is an abstraction. It’s a system where humans come together and decide to allocate resources towards the reification of this abstraction so that it continues to perpetuate into the future. If humans do not cooperate towards that goal, that abstraction ceases to exist. Where this really comes together, is if you consider that the economy has these corporeal elements like Legos. And we take these building blocks, and we build modular systems of cooperation to use them. But these building blocks are always fungible. And they can always be moved from different activities that we do. Now, our goal when we cooperate is not to just exchange bitcoins or exchange Legos with each other, it’s to use the Legos to build a resilient, prosperous society. So, when you look at something like gold, it’s definitely a Lego in the system. But it’s a Lego that I can use for different things to do different things. I can move it around. The fact that it’s a Lego is based on the laws of physics. With Bitcoin, what I have to do is I have to go somewhere in the corner and take a lot of pieces of Legos, just to maintain a new system of Legos to do new things with it. And that’s where the fundamental distinction is between the natural order of the natural world and things that are abstractions.

Why Bitcoin Is Not Digital Gold (w/Roy Sebag)

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Kane Dane