RE: Michael Saylor's Financial Advice To Turkey
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Gold can depreciate over time yes, but I don't understand why they are trying to decentralize everything and connect it to bitcoin. Turkey is too big an economy to adapt to bitcoin. Look, you can partially apply what you say in Central America, Asia or the Caribbean in economies with less than a few million inhabitants and an economy not exceeding a few tens of billions of dollars, but you cannot apply it in a country with a population of 85 million people with an economy size approaching $ 1 trillion. This is almost equal to the current value of the entire cryptocurrency market.
I don't think gold is the best store of value, but it has a value chart that has partially caught up with the S&P500 in the last 20 years. Gold may be able to cause losses to its investors for many years, but this does not change the fact that it is the most reliable store of value item. You can sell gold in very high volumes with almost no loss in value, but if you try to buy or sell $50bn of bitcoin tomorrow morning, you'll probably plant a pretty big green candle in the market graph.
Also check this graphs, first one is argentina's m2 money supply, second one is turkey's, third one is usa's. The most important difference between the USA and the other two is that the chart of the USA is increasing at a constant rate (excluding the banknotes printed during the covid19 pandemic), while the printing houses of Argentina and Turkey are printing money at an increasing parabolic rate.
Yes. This charts prove how no so reliable fiat currencies are over long periods of time as store of value.
I disagree that bitcoin can't be adopted into larger economies. It actually would work better in larger economies, because efficiency would be easily noticeable in comparison. However, that is a different topic.
This idea doesn't necessarily involve Turkey adopting bitcoin to use within its economy. It only suggests converting its gold reserves into bitcoin. The bitcoin itself wouldn't be used as a currency. Sure, gold still may appreciate a little bit over the years, but 10x 20x appreciation in short period of time like 5-10 years wouldn't be possible. The only asset that has this possibility at this time is bitcoin. Turkey's advantage in this situation would be being the first to implement such solutions. Those who follow afterwards wouldn't have the same benefits.