Compare the Fed, Bitcoin and Gold – Side by Side

Fiat (Central Bank Notes)

BitCoin

Gold

New money created by Federal Reserve Miners Miners
New money creation limited by No limit System’s code, algorithm, cost of production, value of finished coin, competition with other miners Finite supply in the ground, cost of production, market price
New money received by The Federal Reserve, itself, with no cost associated with creating it (Note:L there is no cost for the Fed to create digital money and digital money being 97% of the US money supply Miners that do the computational work of authenticating transactions Miners
New Money Individually identified by Serial number Unique hash key No
Transactions tracked and followed Some – digital money (97%) always go through regulated channels but cash (3%) usually are not Yes, each transaction permanently recorded in the block chain and used perpetually to verify Bitcoin ownership and prevent double spending Some – new regulations in US requiring dealers to report
Ownership tracked Digital – yes, cash – no No Some (same as above)
Transport/Export Restrictions Yes – many countries have restrictions preventing removal of large sums of their currency No. Bitcoins can be transferred either electronically or manually (through flash drives, CDs, floppies, SD cards, the cloud etc. anywhere in the world Yes and easily detectable at airport screeners.
Confiscate-able Yes Extremely difficult with encryption and password protection. Yes. Easy to detect with metal detectors.
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