October 21, 2015
The Technology of Money : Back To The Future Edition – Insights from BitGold.Com
For Americans who came of age in the 1980’s, the future arrives today: Oct 21st, 2015, the day Back to the Future’s Marty McFly drops in from 1985. It’s fun to forensically diagnose technological predictions of the past, so Josh Crumb of BitGold.com wrote a blog post regarding a form of technology also important to Marty and the film- the technology of money.
The film had many fun predictions, some of which landed just a bit off the mark, such as $50.00 for a bottle of Pepsi. But how have prices actually changed in since the mid-1980’s, and why? With the benefit of hindsight, what might 1985 Marty have done to protect his savings over the past 30 years (aside from knowing future sports scores, part of the plotline of the movie, and the film’s other prediction of inequality, moral hazard and a general dystopia created from one-way bets)?
Mr. Crumb started with a simple question; would Marty have been better off landing in the future with dollars, gold, or a savings account left to compound interest for 30 years (assuming of course his bank remained intact through the 1990’s and 2000’s crises)? The result proves an important point in his core thesis: that gold is not an investment that grows over time, it is simply a store of value, something to protect your wages without taking a risk that your currency, bank savings, or investments are being managed poorly.
The post can be seen at: https://www.goldmoney.com/savingstech-back-to-the-future-edition