CryptoSlate caught up with Dominic Frisby, the author of Bitcoin: The Future of Money?, to discuss gold, Bitcoin, and geopolitics.
The themes were appropriate, given our collective fixation with all things macro today, especially inflation, and the mechanics that have gotten us to this point. But also because Frisby is a staunch advocate of “sticking to the man.”
Frisby’s content often criticizes the government for perpetuating the struggles of the oppressed. These reviews are usually delivered in a satirical style for entertainment while also providing a deeper message.
For example, in a recent YouTube video, through song and dance, Frisby proudly sings “f*ck the Government” while espousing anarchist ideologies such as the idea that “taxes are theft.”
But, as with most comedies, there is a grain of truth behind the jokes. And, in these oppressive and fiscally uncertain times, Frisby believes awareness of these issues will mitigate what lies ahead.
Gold was Frisby’s gateway to anti-fiat thinking
Frisby not only blames the government for social decay, but like peas in a pod, he also places a significant degree of blame on the banks, specifically the fiat banking system.
In a blog post on fiat money, now over ten years old, Frisby explained that the co-conspirators wield their power of influence by creating fiat money.
Describing a top-down distribution system, he pointed out that those at the bottom benefit the least from this system.
“This fiat system, in which governments and banks have the power to create money, benefits those closest to the issue of money, those who receive it first, at the expense of those furthest away, those who receive it first. in the end”.
And with that, the gap between rich and poor will widen as long as everyone transacts with play money.
The Bitcoin vs. Debate gold is divisive, with the respective sponsors clashing in emotionally charged discussions. But Frisby sees both as equally significant insofar as they are both “anti-fiats.”
He revealed to CryptoSlate that investing in gold opened his eyes to fiat fraud. But that’s not to say that Bitcoin doesn’t offer similar ideas, just that it hadn’t been invented at the time of these realizations.
“I started investing in gold and then I started reading about gold. This was in the nineties. And once you go down that rabbit hole, people talk about the rabbit hole with Bitcoin, but for me, it was gold because it was before Bitcoin was invented.”
Delving deeper, Frisby described his knowledge of fiat money and the social harm it inflicts as a path from which there is no return.
Although he sold a chunk of gold a few years ago, he still maintains that his investment strategy is heavily skewed toward “anti-fiats,” made up of gold, silver, and Bitcoin, with a bias toward gold.
Sharing his insights into gold being “the most analog asset there is,” Frisby admitted that, in a digital world, perhaps using too much gold may be a miscalculation on his part.
“The problem with gold is that it is the most analog asset there is… So in that world, do you really want the burden of gold when all the wealth is digital? And I question it.”
The return of money backed by gold
When it comes to storing wealth, the dominant narrative of late is that tech-savvy millennials prefer Bitcoin over gold.
Nigel Green, CEO and founder of the deVere Group, said that based on that, as millennials continue to rise in the workforce over time, he expects BTC to become “increasingly influential.”
“As the world continues to shift toward technology and millennials become a more dominant part of the global economy, we should expect Bitcoin to also take on an increasingly influential role in financial markets, especially in regards to being a ‘recession-proof’ asset. ”
But here and now, Frisby argued that gold, with its thousands of years of history, constitutes a more recognized and universally accepted form of trust between nation-states, especially during precarious geopolitical times.
Russian President Vladimir Putin, speaking at a BRICS business forum in late June, revealed that he is actively working on a new reserve currency based on a basket made up of the national currencies of member countries.
The move was widely seen as a direct challenge to the hegemony of the US dollar and a consequence of sanctions against Russia following the outbreak of war in February.
Speculating on the matter, Frisby imagines that behind the scenes, the BRICS nations are discussing backing this new currency with gold, which he believes would restore confidence among the bloc’s members.
“No one trusts anyone [in BRICS]And if everyone had to start settling their payments in something backed by gold, they might start trusting each other.”
As much as he has animosity toward governments, Frisby said it’s ironic that the only thing that can save gold is governments.
What about Bitcoin?
While a Bitcoin-backed currency seems implausible, perhaps due to the lack of universal acceptance of BTC as a store of value, would such an offer be so far-fetched?
Since the imposition of sanctions, Russia has gradually moved closer to Bitcoin and cryptocurrencies. In particular, in the change of direction of its proposal to prohibit the use of digital assets as a means of payment in the country.
Since then, local media have continually reported on pro-crypto moves from Moscow. The latest such report, from the state-owned TASS news agency, announced the green light for cryptocurrencies to be used in international transaction settlement “for all industries without exception,” according to the Ministry of Finance.
For the old guard at least, the real kicker would be if Moscow went full-on with a Bitcoin-backed reserve currency. While that seems highly implausible from today’s sensibilities, anything can happen, especially on the subject of