image by Dmitry Demidko
Its been a really difficult title to decide on. Bitcoin vs Gold or Gold vs Bitcoin is the one most people want to see and read about because for some reason they feel they must pick a side and join the team and cheer for and against the other. Gold bugs and bitcoin maximalists are constantly justifying why their “non fiat” asset proxy is better than the other one. Wasn’t the #dropgold campaign hysterical… it seemed to take place at the exact moment when Gold broke out relative to 99.9% of all fiat currencies across the globe. Equally silly were all our gold bug friends who for 10 years before had been calling for the death of bitcoin and who have been revelling in the fact that bitcoin dropped from 19k in early 2018 to around 3k by Dec 2018. What all these famous money men failed to see was when bitcoin went from 150USD to 19K. There are countless reasons why each one is better or worse than the other, but you can go and read up on all that yourself - I don’t care for the competition. This article is about “Gold and Bitcoin”.
There is an age old saying that goes something like this … “divide and conquer”. The basic idea is that to rule effectively the easiest thing to do is to split people up into groups, let them go at each other and then while they are distracted you are able to rule. The people will be so distracted by each other they won’t even notice what is actually happening. We have a really good working example of this in the UK at present, the whole nation has been mesmerised by Brexit, neither side has actually seen the democratic process for what it really is. Imagine voting for something and then your representatives turn around and do the opposite. But none of that is important, what’s important to these 2 groups is: are we in or are we out.
Now you are probably thinking, why am I saying all this? The Bitcoin vs Gold narrative has come from somewhere, and the idea is to set each off against the other, while distracting both to the total loss of fiat currency purchasing power. The benefits of holding both should be fairly obvious and the conversation should be about the allocation percentage between the two.
You see, the one thing that both these wonderful asset classes posses is that they are not FIAT. Their supply is not mandated by a government (in plain english - governments can not create these out of thin air, like they can their own currency) . Its not that we don’t like government, its that when it comes to money creation, their track records aren’t that good. The funny thing with you gold maximalists and bitcoin bugs (hehe) is that you have so much in common, you are practically identical twins - stop this competitive nonsense and find a way to work together.
