alanbwt on Nostr: Ray Dalio used to think the Yuan would displace the dollar as the global reserve ...

Ray Dalio used to think the Yuan would displace the dollar as the global reserve currency. Now he seems to think gold will.

What he continues to miss is that you cannot send gold over the internet. You can only send gold IOUs. And the only reason gold IOUs worked for as long as they did since Bretton Woods is we were living in a unipolar world.

The USA was so dominant post WWII that the rest of the world was willing to accept the dollar as the singular gold IOU system. Those days have passed.

We are now living in a digital, multipolar world. Thus, trustless digital gold is needed. Who would trust China, or the US, or any other single country to manage a new gold IOU system?

Trying to go back to the gold standard again and again expecting different results than what got us to the fiat problems we face today is insanity.

Don’t trust. Verify.