Correct. The gold is rehypothecated - gold is used as collateral for additional debts many times over. The gold is initially leased by the LBMA and many more contracts on that gold is issued and sold on the futures market.
Typically gold is not supposed to leave the vaults, and the banks would settle with paper at the close of the contract. Banks need to pay attention to open interest (which is the total amount of outstanding derivative contracts). If it's too high, they need to shake the tree and prevent a mass of contracts from taking delivery.
For me one of the biggest threats to bitcoin is it relies on rational actors on behalf of the minors, where I don't see them being rational when production comes a lot harder to come by. Plus I think it's important to be backed by something physical.
The storage fees and being less liquid and less of a concern as I prioritize the proxy for wealth/store of value over medium of exchange.
I never really believed they would be pegged to the US dollar as a means to lessen hyperinflation, which is why I thought they would use BRICS when they were announced.
I would be hesitant to have bitcoin as the reserve currency but that's because I'm an old fashion gold bug, On the other hand, moving to bitcoin is a good way to transition to a free gold type of standard.
It's real: https://www.youtube.com/watch?v=k1zraPn29dU
Liberals are in panicking as they are sliding in the polls and he only paused heating oil for Atlantic Canada in order to buy their votes for the next election. There is no question the Liberals would add it back if they were elected again. I hope the Atlantic provinces don't fall for it, but I don't think there is any trust there so there is nothing they can do to bring the trust back.
Wizard of Oz is about the political climate in the 1880s around money where there was competition to the gold standard with people advocating for a bimetalic standard with silver. The yellow brick road represents the gold standard, while Dorothy's slippers were silver in the book (adapted to ruby for the movie).
The scarecrow represented the farmers, tin man the industry in need of oil, the cowardly lion was William Jennings Bryan, who was a pro-silver advocate.
Good time to short the S&P