Mark Pey

November 25, 2020

Here at SendGold, we’ve been familiar with crypto-currencies since 2013. We tested the first live version of our MVP (minimum viable product) platform on a distributed ledger in 2015. We spent years transacting on each of the major competing blockchain platforms, working with industry-leading engineers and law firms on legal ownership rights and regulatory risks, identifying IT cyber-security risks and mechanisms to mitigate them. And on a personal basis, we have also traded BTC and several other alt coins for many years, taking advantage of early arbitrage and massive growth. However, SendGold is not dependent on blockchain now in any way. So we thought we would comment briefly on a few selected statements that are sometimes made about crypto-currencies and how they compare to direct physical gold ownership.

"Bitcoin is a store of value"

We think the label “a store of value” is a coveted one, and we’re unclear why an asset that lost 85% of its value just 18 months ago would qualify for it. We also think a store of value must prove it can retain that value over time. Bitcoin has been around for about a decade, through a period of (believe it or not) relative stability in world politics and economics. But history is full of political revolutions, economic depressions, currency regime overhauls, and even wars. We’d have to check in a few decades to see whether the Bitcoin letter and number combinations were still considered valuable before the “store of value” label would apply.

"Blockchain ledgers are immutable"

It’s simple to research “The DAO” when the developers of the second-largest crypto-currency chain Ethereum got together and decided to change the ledger. Numerous ledger entries were zeroed out. People may also have heard the term “51% attack”. If more than 50% of the validating nodes agree, they can change the “immutable” ledger to whatever they would like. They could assign 1,000,000 Bitcoin to themselves or could change other Bitcoin ledger entries to zero. A tool launched recently by the University of Cambridge Centre for Alternative Finance shows that 65% of Bitcoin validating node “hashpower” is controlled from servers physically located in The People’s Republic of China: https://cbeci.org/mining_map

"Bitcoin is fungible"

Fungible goods are items that are interchangeable because they are identical to each other. This is why one dollar is exchangeable for any other dollar. But one Bitcoin is not the same as another: they are composed of unique letter and number combinations. This was brought home a few weeks ago with the stunning seizure by the U.S. Department of Justice of $1 billion in Bitcoin that had previously been used in 2013 in the infamous “Silk Road” dark web crimes. https://www.justice.gov/usao-ndca/pr/united-states-files-civil-action-forfeit-cryptocurrency-valued-over-one-billion-us It’s not clear how to be certain that the Bitcoin you might own in a wallet, pool, exchange, or fund was not previously used for criminal activity and could be subject to confiscation. There are rumours in the business that some buyers are paying a premium of 20% or more to purchase so-called “white” or “virgin” Bitcoin (that has never been used) directly from miners. In the 2019 G-20 meeting the leaders agreed to begin enforcing Financial Action Task Force (FATF) rules on crypto-currencies. We are technology innovators ourselves and applaud new developments, especially in finance. But we think it’s important to make accurate assessments of new technologies, and it’s especially critical that those new technologies fit entirely within the boundaries of regulation and law. We think this applies both to assets accumulated for long-term wealth building and assets held for short-term speculation.   Insights – How can investors keep their eyes on the big picture, no matter who the U.S. president is? SendGold shortlisted in three categories for MyBusiness Awards 2020 A shine of certainty in an uncertain world  

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

November 25, 2020

Here at SendGold, we’ve been familiar with crypto-currencies since 2013. We tested the first live version of our MVP (minimum viable product) platform on a distributed ledger in 2015. We spent years transacting on each of the major competing blockchain platforms, working with industry-leading engineers and law firms on legal ownership rights and regulatory risks, identifying IT cyber-security risks and mechanisms to mitigate them. And on a personal basis, we have also traded BTC and several other alt coins for many years, taking advantage of early arbitrage and massive growth. However, SendGold is not dependent on blockchain now in any way. So we thought we would comment briefly on a few selected statements that are sometimes made about crypto-currencies and how they compare to direct physical gold ownership.

"Bitcoin is a store of value"

We think the label “a store of value” is a coveted one, and we’re unclear why an asset that lost 85% of its value just 18 months ago would qualify for it. We also think a store of value must prove it can retain that value over time. Bitcoin has been around for about a decade, through a period of (believe it or not) relative stability in world politics and economics. But history is full of political revolutions, economic depressions, currency regime overhauls, and even wars. We’d have to check in a few decades to see whether the Bitcoin letter and number combinations were still considered valuable before the “store of value” label would apply.

"Blockchain ledgers are immutable"

It’s simple to research “The DAO” when the developers of the second-largest crypto-currency chain Ethereum got together and decided to change the ledger. Numerous ledger entries were zeroed out. People may also have heard the term “51% attack”. If more than 50% of the validating nodes agree, they can change the “immutable” ledger to whatever they would like. They could assign 1,000,000 Bitcoin to themselves or could change other Bitcoin ledger entries to zero. A tool launched recently by the University of Cambridge Centre for Alternative Finance shows that 65% of Bitcoin validating node “hashpower” is controlled from servers physically located in The People’s Republic of China: https://cbeci.org/mining_map

"Bitcoin is fungible"

Fungible goods are items that are interchangeable because they are identical to each other. This is why one dollar is exchangeable for any other dollar. But one Bitcoin is not the same as another: they are composed of unique letter and number combinations. This was brought home a few weeks ago with the stunning seizure by the U.S. Department of Justice of $1 billion in Bitcoin that had previously been used in 2013 in the infamous “Silk Road” dark web crimes. https://www.justice.gov/usao-ndca/pr/united-states-files-civil-action-forfeit-cryptocurrency-valued-over-one-billion-us It’s not clear how to be certain that the Bitcoin you might own in a wallet, pool, exchange, or fund was not previously used for criminal activity and could be subject to confiscation. There are rumours in the business that some buyers are paying a premium of 20% or more to purchase so-called “white” or “virgin” Bitcoin (that has never been used) directly from miners. In the 2019 G-20 meeting the leaders agreed to begin enforcing Financial Action Task Force (FATF) rules on crypto-currencies. We are technology innovators ourselves and applaud new developments, especially in finance. But we think it’s important to make accurate assessments of new technologies, and it’s especially critical that those new technologies fit entirely within the boundaries of regulation and law. We think this applies both to assets accumulated for long-term wealth building and assets held for short-term speculation.   Insights – How can investors keep their eyes on the big picture, no matter who the U.S. president is? SendGold shortlisted in three categories for MyBusiness Awards 2020 A shine of certainty in an uncertain world  

Download our new app now and BUY 100% title to GOLD in minutes


Mark Pey

November 9, 2020

In a season of political and economic uncertainty, it’s understandable for people to feel unsure about what may lie ahead. Even the official winner of the U.S. election will not be certified under U.S. law until at least 8 December, celebratory pronouncements in the news media notwithstanding. So as we endure continued uncertainty on that front it’s useful to take stock of a few of the certainties we can rely on as we think about how to protect and grow our wealth in the coming months and years. So what do we know for certain about those coming months and years?

  • We know for certain that under the policy change announced by The Reserve Bank of Australia last week that someone depositing $10,000 in the bank at the end of one year will now receive an interest payment of $10 instead of the previous $25.
  • We know for certain that The Reserve Bank’s publicly stated policy is to further reduce the value of the Australian dollar through their newly created Quantitative Easing (QE) policy. This also applies to other regions and currencies with QE including the U.S. and the Eurozone.
  • We know for certain that governments around the world including the U.S. are borrowing unprecedented amounts to battle the economic effects of the COVID lockdowns.
  • We know that those extra borrowings (estimated at more than $400 billion so far for Australia alone and more than $5 trillion in the U.S.) manifest as an increased quantity of money against a relatively fixed (or even diminishing) quantity of goods and services.
  • We know for certain that such rapid increases in the supply of money can lead to a repricing of goods and services based on the new quantity of money.
  • We know that The Reserve Bank last week cited the first evidence of this “repricing” of goods and services when they reported that the official price of food had risen 1.6% in the previous quarter (6.4% annualised).
So it’s understandable for people to feel glum and uncertain! But luckily there is also some very good news on the “certainty” side of the ledger.
  • We know for certain that someone who deposited $10,000 into a gold account one year ago will today find the value of that account is more than $12,000.
  • We know for certain that prior gold bull markets have seen investors receive triple-digit and even quadruple-digit gains, with the one starting in 1971 returning 2,100% and the one starting in 1999 returning 670%.
  • We know for certain that all SendGold customers are the individual outright owners of physical gold bullion, fully segregated from our company assets and from the banking system and protected from confiscation by the property rights enshrined in the Australian Constitution.
  • We know for certain that The International Property Rights Alliance has stated that Australian property rights are some of the strongest in the world and that it is absolutely illegal for local, state, or Federal officials to seize someone’s property without due process of law.
Uncertain times can lead people to fear and inaction but we think instead they should be times for people to act to make sure their wealth is protected. Certainly! With SendGold.   SendGold wins best Investment Innovation at the Finder Innovation Awards 2020 Insights – Gold gaining on the US dollar ahead of the US election Positioning with gold for election uncertainty  

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