Ron Paul Says He Was "Surprised" His Followers Prefer Bitcoin To Gold

Earlier this week, former Congressman Ron Paul posted a Twitter poll asking his followers to choose between four different assets for a long-term investment, with the stipulation that the bearer would need to keep their money locked up for ten years.

 

 

Paul admitted he was surprised when he saw that a majority of respondents – 54% - selected bitcoin over gold, dollars and a 10-year Treasury bond.

During an interview with the Street, a reporter asked Paul if he was surprised that his followers prefer bitcoin to gold.

Yea a little bit. I was a little bit - of course I wasn’t surprised that only 2% would store it in Federal Reserve notes, nor do they think they should buy Treasury bills. Gold has 36% but bitcoin has 54%...it’s the sort of information that tells me where my viewers are and what they’re thinking. Most of my viewers know how supportive I am of gold, and they know I’m tolerant of digital currencies.

Still, Paul believes cryptocurrencies are an interesting experiment and is generally supportive of their development and increasing popularity. But when asked for his thoughts on where bitcoin might be in ten years, he demurred.

What’s it going to be like in ten years? Nobody knows. But we have a pretty good idea where gold will be. It’s been around a long time and it’s not going away.

Though the market for gold is still much larger than the market for bitcoin, Paul’s interviewer asked if the interest in cryptocurrencies could be one reason for gold’s recent stumbles.

I think we could still be in a phase where gold could take off. It’s just a matter of figuring out when…the fed has created so much money and people have sort of caught on to it like a fever."

Paul said he doesn’t invest in bitcoin or any other cryptocurrencies, and has no plans to start.

No, I don’t intend to at all. I find it fascinating, but as an investor, no…"

At the interview’s conclusion, Paul explained that digital currencies have helped demonstrate an important principle about government and sound money: When a government loses all credibility and its currency becomes worthless, people will work out an alternative monetary system on their own. Venezuela and Zimbabwe have been perhaps the best examples of this: bitcoin trades at a premium in both countries. And in Venezuela, bitcoin miners risk being prosecuted by the government.

“Take a country like Zimbabwe or Venezuela. They change their attitudes quickly when they get in trouble.”
 

Comments

greenskeeper carl tmosley Tue, 12/12/2017 - 23:51 Permalink

I can understand many people taking gold over bitcoin, but not with the 'hold for 10 years' stipulation. I'm a late comer to the crypto thing, and claim no expertise on them. I also think BTC will see new all time highs in the near future, but I do not thing 10k worth of bitcoin today will be worth more than 10k worth of gold 10 yearsfrom now. I'm surprised many on here seem to think so, even the most die hard fans. Even if crypto is here to stay, the way of the future, etc, I still think its better than 50/50 it goes the way of the pioneering internet companies.

In reply to by tmosley

Pinto Currency stacking12321 Wed, 12/13/2017 - 00:34 Permalink

Bitcoin has well known weaknesses - and Pippa Malmgren claims that crypto passwords can be hacked in less than a minute now with quantum computers.However Ethereum, or whatever other crypto the crazed flock turns to when they realize BitCoin's problems, have the same problem of no intrinsic value in the units themselves.Gold and silver have intrinsic value and are the core of the next durable monetary unit.#NoNakedCryptos 

In reply to by stacking12321

Muirchertach greenskeeper carl Wed, 12/13/2017 - 00:39 Permalink

My belief Is that a handful will occupy a few niches, and one of those will replace another every few years. Bitcoin, Litecoin, Monero (an extra private coin), then Bitcoin II, Litecoin II, Monero II, etc. It won't matter because people will not sit on their crypto but use it to live life and buy goods and wealth-generating assets in real time (money is not an asset): real estate, vehicles, their own businesses, stocks, etc. Things that provide long-term utility (shelter, transportation) or ongoing income from needed goods and services, where the crypto-currency dujour doesn't really matter. Long-term contracts (mortgages, etc.) will be pegged to baskets of commodities rather than denominated in currencies. People attempting to hoard it will get crushed, but adoption will increase over time. Hoarding Bitcoin is only destroying its opportunity to be used as it was intended to be used. The pressure will build up and before you know its competitor will appear on the horizon. Then the bubble will burst and people will learn the lesson never to greedily speculate long-term on a currency, as currencies are meant to be exchanged. While a small percentage will cash out and get rich, most of the speculators are digging their own graves and preventing Bitcoin from gaining actual value, staying power, and prominence - by being used, whether as everyday money or a large sum remittance tool; it's currently being used as neither. It is by and large acting as a speculative, near-zero-utility instrument (in terms of actual, not potential utility) at the moment, and can blow away in the wind without anyone except the losers caring, like any lost bet. But the appeal of crypto to citizens the world over is here to stay. I will be happy to see both crypto gain traction and the selfish, counterproductive speculators get crushed. Crypto is the revolution of the meek working to live and just get by, not of selfish control freaks looking to become millionaires. This will become clear when the hogs get slaughtered for the first time.

In reply to by greenskeeper carl

blargg Muirchertach Wed, 12/13/2017 - 06:17 Permalink

Thanks, you clarified a lot of things for me and made it easier to accept having a currency for day-to-day purchases, and something else for long-term storage/investment. It's the modern way, to work at a more abstract level and walk around as "rocks" pop up and sink in the pond. One does it regularly with whom they get various products from, whom they choose for shipping, etc.

In reply to by Muirchertach

Implied Violins Tue, 12/12/2017 - 23:46 Permalink

The only problem with gold is the depth of the lake you need to sink your boat in, and the amount of lead you need to make sure it stays there. Otherwise, I'm all in.

Implied Violins Implied Violins Wed, 12/13/2017 - 00:11 Permalink

In case people think I'm bad mouthing gold, I'm not. That really is what I have put my money into.

I'm just wary of .gov going all 1934 on our asses again, and trying to make it illegal to own it. And because of that, I've increased my lead holdings substantially.

I don't trust crypto currencies AT ALL, for many reasons, including this:

https://www.theregister.co.uk/2017/11/20/intel_flags_firmware_flaws/

"Intel today admitted its Management Engine (ME), Server Platform Services (SPS), and Trusted Execution Engine (TXE) are vulnerable to multiple worrying security flaws, based on the findings of external security experts.

The firmware-level bugs allow logged-in administrators, and malicious or hijacked high-privilege processes, to run code beneath the operating system to spy on or meddle with the computer completely out of sight of other users and admins. The holes can also be exploited by network administrators, or people masquerading as admins, to remotely infect machines with spyware and invisible rootkits, potentially.

Meanwhile, logged-in users, or malicious or commandeered applications, can leverage the security weaknesses to extract confidential and protected information from the computer's memory, potentially giving miscreants sensitive data – such as passwords or cryptographic keys – to kick off other attacks. This is especially bad news on servers and other shared machines.

In short, a huge amount of Intel silicon is secretly running code that is buggy and exploitable by attackers and malware to fully and silently compromise computers. The processor chipsets affected by the flaws are as follows:
•6th, 7th and 8th Generation Intel Core processors
•Intel Xeon E3-1200 v5 and v6 processors
•Intel Xeon Scalable processors
•Intel Xeon W processors
•Intel Atom C3000 processors
•Apollo Lake Intel Atom E3900 series
•Apollo Lake Intel Pentiums
•Celeron N and J series processors..."

If you can't trust the hardware you use for transactions, what CAN you trust?

In reply to by Implied Violins

NobodyUknow zorba THE GREEK Wed, 12/13/2017 - 11:27 Permalink

Was the US Dollar around and used as money 5 or 6 thousand years ago? No.Was the US Dollar around and used as money 5 or 6 hundred years ago? No.Gold isn't used in daily transactions because US Dollars are now "better" for transacting daily business.E-Dollars/credit cards/PayPal have replaced paper US Dollars because they are "better" for transacting daily business.Are cryptocurrencies better than e-Dollars? Time will tell.

In reply to by zorba THE GREEK

jfb Tue, 12/12/2017 - 23:49 Permalink

That sure is a bad answer. Bitcoins vs gold over one year, I wouldn't be sure, but over 10 years, gold of course.Nearly one year ago I started to purchase cryptos and I'm planning to get out of it (at least partially) in the coming weeks/days.It wasn't a bubble/tulipemania when most of the owners were tech guys, libertarian idealists, but when most newcomers are people who don't even know what is a bitcoin, pure speculators, in view of the huge competition from new cryptos, it is a bubble that will burst, and only the usual tech guys/idealists will not sell, as usual. It will return to the 2015 price

williambanzai7 Wed, 12/13/2017 - 00:23 Permalink

I think the value of a bitcoin to those millions of Chinese wanting to avoid capital controls is something that should not be underestimated. Carry gold out of China is not an option. And I venture to say that anything with the word Chinese in it is something easily under estimated.

This another bubble, but it has wheels.

Meanwhile all manner of electronic payment methods are surging in China.

Give Me Some Truth VWAndy Wed, 12/13/2017 - 00:40 Permalink

Paul's effort to get the Fed audited is not BS. It's the longest of long shots, but that's not Paul's fault. If it ever happens, it will be because of his 30 years of pushing for it.No one ever talked about auditing the Fed until Paul made it a crusade. Most of his initiatives take decades to come to fruition. He's been arguing for the legalization of pot for more than 30 years. He was dismissed as a kook when he first brought that up. He popularized the term "blowback" and "neocon" and "empire-building" and "non-interventionism." All terms are now well known - thanks to Paul patiently talking about these topics for decades.You get one politician who is right, and usually very lonely being right, and he catches crap from some people for being a fraud or inauthentic. He's, in fact, the opposite. He's the one real deal speaking truth about all the conventional wisdom that is BS. 

In reply to by VWAndy

VWAndy Give Me Some Truth Wed, 12/13/2017 - 00:49 Permalink

 It is like whores auditing their own pimps. Sorry. They very notion that we would ever get anything like honest numbers out of either the fed or congress is just silly. Im fifty years old an still have not gotten a single straight answer out of either. I guess if ya still think the government works like they told ya in school its plausable. But after thirty years? Im thinkin Ron knew better.

In reply to by Give Me Some Truth

Pol Pot Wed, 12/13/2017 - 00:34 Permalink

Change the $10,000 to $10,000,000 and his results would be totally different. $10k is not life changing...so people will gamble with it....but 10 mill...well now one has to really think and add in risk...

Ribeye Wed, 12/13/2017 - 01:07 Permalink

As usual Ron is correct, or at least I totally agree with his position here..time will tell who is correct, Nobody can predict when a bubble will pop or what the pin will be, and ill freely admit that I don't understand Blockchain, but I feel bitcoins collapse is close, it's just a feeling, don't jump on me please Bitcoiners, like Ron, I'm neutral towards crypto's...and have used BTC for a number of transatlantic weed purchases....it worked beautifully...but the price is bubblesville big time..Right now I have a weird hunch that both Bitcoin and Tesla are going to have a very rough start to 2018..but that's only a hunch..and for the record, I ain't neutral on Tesla, I want them to go down..Lastly, a question, why, on this forum, of all forums, have I still not seen one reference to Canadian company Goldmoney, (see Joe Rogan interviewing Peter Schiff about it on YouTube), strikes me that they are the vanguard of a real life useable gold backed money....and as a user I can say that I have bought everything from a round of drinks to a weekend in a hotel using gold, via a debit card, and it felt great...yet, not a peep on here about it..Isn't this what most of us here were waiting for Tylers?

Exponere Mendaces DarthVaderMentor Wed, 12/13/2017 - 07:11 Permalink

I'm sure the horse-wagon drivers and buggy manufacturers were dismissive too, when the first hobby cars came out.But then, their entire industry was up-ended.Just like prior technology inflections, Electric Lights, Telephones, Television. For every person that adopted it, there were an initial group that hated the hell out of it. They kept hating it right to their graves, while their children adopted the technology willingly.When someone doesn't understand a fundamental change in society, that means they're out of touch and about to be plowed under.I don't mind ZH commenters hating Bitcoin - its a useful signal to me that shows who is going to be left behind.  

In reply to by DarthVaderMentor

DIGrif Wed, 12/13/2017 - 03:20 Permalink

Gold has 36% but bitcoin has 54%...it’s the sort of information that tells me where my viewers are and what they’re thinking. Most of my viewers know how supportive I am of gold, and they know I’m tolerant of digital currencies. No...it tells you that your viewers are FUCKING IDIOTS.