What We Learned from Gold: The Paper Problem
Bitcoin is not the first hard asset to face this challenge. The gold market offers a cautionary tale.
For decades, gold investors have dealt with “paper gold” systems—unallocated accounts, synthetic ETFs, and derivatives with little or no linkage to actual metal. These claims often outnumber real reserves many times over, leading to widespread suspicion of price distortion and systemic misrepresentation.
Most gold investors don’t own gold—they own a claim to gold. And they have no way to prove it.
Bitcoin gives us the tools to break this cycle. But only if companies choose to use them.