Comparison with Historical Gold Standard

The proposed New Bretton Woods System, with Bitcoin at its core, shares similarities with the historical gold standard but also offers significant improvements:

Similarities

Hard Money

Like gold, Bitcoin has a limited supply, making it resistant to inflation. While Bitcoin does experience inflation due to mining, its scarcity and halving mechanism make it more resistant to inflation than traditional fiat money

Global Acceptance

Both gold and Bitcoin have transcended national borders and are recognized globally, albeit in different ways. Gold’s historical significance and physical presence contrast with Bitcoin’s digital nature and disruptive potential

Store of Value

Both gold and Bitcoin offer unique features that make them attractive stores of value during uncertain times. Gold’s historical legacy and physical presence contrast with Bitcoin’s digital innovation and disruptive potential.

Improvements

Divisibility

Bitcoin’s high divisibility makes it more suitable for day-to-day transactions, while gold remains valuable but less practical for small-scale exchanges.

Transferability

Bitcoin’s digital format makes it highly transferable, while physical gold’s logistics and geographical constraints can hinder its movement.

Verifiability:

Bitcoin’s verifiability is instant and certain due to its blockchain, while physical gold’s authenticity may require more effort and expertise.

Programmability

Bitcoin’s programmability, especially with layer 2 solutions like BeL2, opens up possibilities for complex financial operations that are impossible with physical gold.