If bitcoin can go up 20x from $20,000 to $400,000 then gold can also go up 20x from $2,000 to $40,000*
Blockchain technology allows for gold and silver to work the same way as bitcoin is described in this article and there are many platforms that facilitate this. (I prefer Kinesis.money and here is my referral link). Indeed trading between gold and bitcoin over the years has enabled me to increase my holding of both over what I would have had if instead I had just bought and held either.
I’ve been a gold-bug AND a bitcoin-bug since 2011. Gold-bugs are advocates for the “free-ing” of gold from the fierce political control under which it has labored since the early 20th Century; corresponding, not coincidently, with the discovery of very high EROEI oil which supported, through historical increases in productivity, large increases in a debt-based money supply. The collapse of available high EROEI oil is the fundamental factor pushing society once again towards sound money.
Many gold-bugs have been commenting to each other for years that gold would be doing what bitcoin is doing if it was as free from political constraints as is bitcoin. They are mirrored by bitcoin-bugs lamenting that bitcoin is being sold-out to the demands of the moneyed elite who support the current monetary system. I join in this lament and hope, for the sake of the violently repressed people of the world, that bitcoin does not lose its censorship-resistant attributes. It would be a shame, in order to facilitate the ability of Wall Street to collateralized bitcoin holdings, if governments moved to eliminate bitcoin’s censorship resistance.
Even though bitcoin’s speculative gain potential is apparently much greater than gold’s, I’m not ready yet to give up on gold. As a first-tier reserve asset, gold still fulfills a crucial role in our current monetary system. I have conviction in bitcoin’s bullish case for a $400,000 value, while at the same time conviction in the willingness of governments to revalue gold to address rising national debts and threats to the dollar (and by derivative all fiat currencies). If bitcoin can go up 20x from $20,000 to $400,000 then gold can also go up 20x from $2,000 to $40,000*. Given this conviction, I’m going to stay the course by using gold as my holding pattern whenever I dynamically sell into bitcoin “pumps” and thus maintain liquidity with which to buy into bitcoin “dumps”. Underlying this strategy is the overarching conviction that while bitcoin will likely see pull-backs of 30, 40, or 50% on the way up to$400,000, gold will likely not.
*For example, revaluing the US gold certificates held of the Fed’s balance sheets from the current $42/oz to $42,000/oz would eliminate the entire US debt; and ultimately, unless governments abandon gold’s role as a first-tier reserve asset, its value is whatever governments declare it to be. I believe gold’s value will be on the agenda in the upcoming new Bretton Woods agreement that the IMF recently called for.