I’ve written about the idea of putting gold in space before, but this time I think I have a real use case.
Central Banks are running out of Utility
At the recent summit of the World Economic Forum, Christine Lagarde, President of the European Central Bank, let it slip that Central Banks are fast losing their importance.
Why? Because Central Banks need too many people to do the same work that a cryptocurrency exchange like Coinbase does with a few software developers.
That is, too many human beings to track payments all around the world that settle at the speed of snails and do not open on weekends. Meanwhile, cryptocurrency rails are autonomous ledgers that work 24/7 with better returns on savings than any commercial bank product you can think of (mostly because they are so lean and efficient, but also because the biggest one, like Bitcoin, is a “free-energy sniffer-dog” to say it simply).
They’re also more independent (down to the individual node runner for the case of Bitcoin who essentially is their own Bank), hence distanced from regulatory capture / political-group biases and act purely to satisfy the phone-click needs of their fast-paced clients.
What will Central Banks do?
Plan A — Become an issuer of Surveilled Cryptocurrency
This is the plan for the Banking industry at the moment, and while I defended the ECB’s move to one-up the mushrooming USD stablecoins economy, this plan is shitty. Even for American bankers.
First off, surveillance already exists. It’s just quiet. But doing it China-style in lands built on human rights, freedom of expression, and dignity for all people is just not a good idea. It will destroy democracy, plain and simple. Doesn’t matter how many immigrants you tolerate or how well you foster equality of opportunities. If you create an Orwellian nightmare, the people themselves will fuel it.
Banking in the Western world will also move towards incentivizing celebrity memecoins and highly leveraged assets, and the swings will get wilder without any meaningful increase in demand for debt to inject into actually productive capital.
Plan B — Create Demand by Removing Excess
Every human being knows there are two ways to get more efficient and productive:
- Add more stuff. More AI, more memecoins, more stocks in one’s portfolio.
- Remove more stuff. Remove all this excess gold that is weighing banks down on earth and move it off planet. Create space-power for bankers.
I know this is a sci-fi idea. But recently, Elon Musk made an FCC filing, referencing the Type 2 Kardashev Scale, where we tap sunlight from outer space by building a very small version of a Dyson swarm made of 1 million AI satellite servers.
It seems we are living in a science fiction movie, so why not go all the way? Why don’t bankers also get to play this game?
As Elon Musk builds rockets to move AI server GPU systems to space, the Federal Reserve or the European Central Bank could hire his rockets (yes, he’d get freaking rich but no problem) to move something more valuable than GPUs pound-for-pound to space.
Gold.
It could simply be put in an orbit in space. No need to bother fighting with high gravity on Mars.
Maybe parked in a stationary Lagrange point such as L4 and L5, where it will not wander off even without active management, such as is put on satellites (a bunch of CO2 gas canisters that release gas and push the satellite back in place).
Advantages of parking gold reserves in Space
The first beauty is that no human beings will be killed as they would on Earth when nation-states fight for gold.
As historians have recounted, a city can be bombed to the ground and everything killed, just so as to reach the gold. Not in Space where there are no humans to kill. So it is a very good spot to put these rocks we love so much.
Secondly, it will actually incentivize Central Banks to do more than press buttons when executing monetary policy. The move from centralized systems to CBDCs on a blockchain (if at all), while it sounds sophisticated, is actually dumber because now the bank is removing people it trusts and putting all their trust in a kid who vibe-coded the software in their parents’ basement. A lot more money will likely be hacked from these CBDC schemes. All this will be avoided.
Thirdly, more STEM jobs are created in the rocketry industry and with advancement in rocket technology comes advancement in adjacent technologies such as materials science, high pressure systems management (we might learn to do Hydrogen cars better as a result), jet propulsion which is also used in commercial aircraft, telescopy cause we need a Proof of Reserves by continuing to follow our stash as it flies around, and so on.
Fourth – it will foster peace. With so many rockets moving above our heads, surveillance will be turned away from humans just living their lives buying hot dogs, getting dates, etc., to real criminals who might weaponize one of these rocket systems for malicious intent.
Even Better
Merge Musk’s AI systems with gold.
Bingo. Bullish Home run.
:::tip
While I have you here, I’m building an edutech platform at https://bitcoinhighschool.com. Do check it out.
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