Topic: Bitcoin vs. Gold Prices - page 22. (Read 2319 times)

I saw a news clip just yesterday where they were discussing the future of Bitcoin. One person on the panel stated that he doesn’t see a reason why Bitcoin can’t achieve a market cap similar to gold. He admitted that the big increases in value of Bitcoin make him nervous for a correction but he said that there is plenty of room for growth if people view Bitcoin as digital gold.

Bitcoin price movement is more significant than the price of gold which is an investment commodity that has existed since long. But in this increasingly modern era investors are turning to bitcoin where these commodities are based on blockchain technology and gold is now beginning to be abandoned by some investors.

If a reset is coming, what they have in mind is not debt forgiveness.  It's inflation.  If a dollar can only buy 1/3 of what it used to, then, effectively 2/3 of all debt in dollars has been wiped out.

After cryptos go sky high, there are many ways to get inflation.  One simple example is to have the central bank own a lot of crypto (most likely CBs have been buying so far,) so the dollar-crypto exchange rate can be kept stable (at that rate) by CB selling of crypto when necessary.  With this in place, the CB can print a lot of money and still keep the system stable, just as under the 'gold standard.'

Any way they do it, the simple math is that when there's so much more money in the economy (by way of newly valuable cryptos,) inflation is bound to happen.

Now they don't like to do this often, if they can help it, since it's bad for the dollar's reputation.  The last time this happened was the 1970s.  Also, in the past, gold had to go up a lot during these times -- making it doubly bad for the dollar's good name.  The magic of cryptos is that the elites can claim people are just running to a brand new type of money, and not necessarily away from dollars and euro.  (The truth is that the top Western elites have been responsible for the rise of cryptos.)

So the whole thing can be seen as a transfer of wealth from creditors to debtors.  The modern world system, run by the state-bank alliance, is essentially a 'promise machine' where promises are doomed to be broken from day one.  While the values of the promises last, the elites benefit by issuing a lot of them.  When it becomes clear they can't be kept, the elites might try to keep up appearances for now, but eventually, one way or another, the breaking of promises has to be acknowledged, just so the world can get back to normal business.

Gold is better for most "securing savers" but the reasons are not only to be safe from governments and central banks. it's also to secure the funds against the currency losing value.

See this chart https://fred.stlouisfed.org/graph/?g=1xM3 and notice the difference between Clinton economy and the Bush Jr debt disaster.( I am not a US citizens so can be wrong but Clinton made the US economy far better to what it used to be before, he helped a lot.)
See after 2001 (Bush) a long 15 years growing period for gold while the US debt started to become a nightmare (oh it was already but Bush just helped to be sure lol)

No matter if the countries are from West or East, the national debt has a worldwide citizenship lol. A financial reset is totally possible

Steve Wozniak (apple co founder) said something interesting in an interview recently. He said humanity will invent better and more efficient methods to harvest gold from the earth's crust. Bitcoin's algorithmic method of limiting its own production has superior chances of maintaining a constant rate of supply.

The real test of gold is whether society can realistically revert to a gold standard in cases of emergency. If a zombie apocalypse occurred tomorrow, would gold emerge as a preferred coin of exchange across remnants of civilization? There are clips on youtube where people walk the streets attempting to sell $1,000 of gold or silver for $50. No one takes them up on it. The concept of gold and its value as a currency may be too neglected within the public eye to be an emergent currency in times of distress. Not only is support for gold exchange non-existent, its utility as a means of exchange may be a lost lore similar to the recipe for making roman concrete or damascus steel.

Golds best hope may be a form of gold renaissance, a resurgence of interest driven by fears relating to fiat hyperinflation. This is occurring in some circles. Preppers, doomsdayers and post apocalyptic planners are all stocking up on precious metals. What gold lacks in bling power and excitement it could more than make up for in endurance.

From my posts on this forum, it might be obvious I favor bitcoin over gold. But even I don't forget gold was here millennia before anyone knew what bitcoin was, and may be around millennia after bitcoin is lost and forgotten.

It seems to me that if bitcoin is used for debt forgiveness it can do only Americans. I doubt that they will ever be able to give 20 trillion of its foreign debt. But for this they need a capitalization of bitcoin is still very much to increase. We have time to get rich. After the capitalization of bitcoin will reach the debt America I will sell your coins.

The last time I did this analysis, gold was a thousand times more expensive than Bitcoin, if we compare the same proportions of total supply.  By now, Bitcoin has risen 30-fold, and so gold is only 30 times more expensive.

Of course, I was roundly dismissed for speculating Bitcoin could get anywhere near a six-figure price in dollars.  If I was criticized for being too bullish on Bitcoin, today I might be seen as too bullish on gold.

How to answer the question -- where to from here?  As I wrote recently, gold is objectively a better money for securing savers' freedom from governments and central banks.  So, if the long-term price ratio is 10 to 1 in favor of gold, Bitcoin can still go up 3 times.  It'd still be a great return by the standards of any asset, but Bitcoin is not quite as compelling as it used to be.

Especially, many early owners of Bitcoin, now flush with capital, who are also sympathetic to gold, might decide to sell some Bitcoin and buy gold at these prices.

We have to be careful here.  This entire analysis was based on the (pretty common) assumption that governments and central banks have nothing to do with gold and Bitcoin prices, and that the future of Bitcoin is to be another limited-supply monetary asset like gold, but at an appropriate relative price.  (The reality, at least with gold prices, is of course the opposite.)

So, the real question is what the Western elites want (and what China and Russia want, if they're able to counter the West in the field of monetary engineering.)  If Western debt levels and resulting economic/social/political problems are so bad that the elites have decided to use cryptocurrency to effect a reset of the entire system, to effectively wipe out their debt and start afresh, as just after World War II, then the sky is the limit for Bitcoin and cryptos.

If, on the other hand, the Western elites are only preparing for such a reset by taking advantage of cheap crypto prices so far, then we have to watch the relative price to gold.  The rise of Bitcoin, so far, is consistent with this scenario too.  From here on, our thinking might have to change.

For the answer to that question, watch the news closely for the signs!