I have argued on some public bitcoin forums recently that if governments became wary of the disruption that a rising market cap of bitcoin could bring, governments could coordinate a re-valuation of national gold reserves held on central bank balance sheets. If such reserves were re-valued to 5–10–20-or-$40,000 /oz that would lower national debt/GCP ratios. That would also give some room for monetary tightening. That in turn could slow down bitcoin adoption.
Bitcoin maximalist scolds such as “Bitcoin Tina” called me “out of my mind”. Many others piled on in the same vein. When I ask questions like, “When do you think all fiat currencies will cease to exist?” or “How do you see the process of gold being abandoned as a central bank tier 1 asset unfolding?” I get ignored or scorned and am told, “I’m done with talking to gold bugs, go away!”
What’s weird is that I have been a gold bug exactly the same amount of time I have been a bitcoin bug, since 2011 (and, NO, trading between gold and bitcoin has not diminished my number of bitcoin— it has increased it). My gold bug-ness has led to a greater and greater understanding of how our current monetary system actually works, but I think many bitcoiners are just too lazy to take the time to learn about how our current system really works.
This article of yours has been like a fresh breeze! Thank you for posting it.
I am going to continue to hold both gold and bitcoin for all the reasons you list, and the reason I list, i.e. the non-zero probability that governments could dramatically revalue upwards this tier 1 asset in response to the various threats to the current fiat system. Many bitcoiners that like to brag about how bitcoin will go up 20x from here just can’t imagine that gold could go up 20x from here as well…well, I can.
I think bitcoin and gold are not mutually exclusive and instead are converging, especially since allocated physical gold can now be “held” and traded on the blockchain. I like the Kinesis.money platform for trading between bitcoin and gold. As a gold stacker over the years, I love Kinesis. It came in super handy when my recent change of resident country meant the new country wanted to charge me a hefty customs duty on any physical gold I wanted to bring into the country.
The world is obviously heading towards some kind of monetary reset. In the meanwhile, we “little guys” at least have convenient means such as Kinesis Money ( https://kinesis.money/) where we can hold digitally liquid gold, silver, dollars, euros, bitcoin, and ethereum; and also easily trade between these without storage fees while we await the reset.
Also, the more the public trade gold on the blockchain, the less the LMBA and CME paper gold markets will control the spot price. US banking arrangement allows funding without paying high wiring fees. Transaction fees are extremely low and 80% of them are distributed back to us “little guys” as velocity yields. The digital metal is allocated to physical gold held in ABX vaults. Their crypto cold wallet is also well-priced.
In the US, I encourage my friends to put BTC in a self-directed Roth IRA and/or 401k to protect against capital gains tax on huge gains.
The Mideast and South and Southeastern Asia are more and more adopting blockchain gold as non-taxable just as physical gold. That’s why Kinesis is the go-to platform for the largest banking services company in Indonesia and for the pilgrimage savings programs for the largest Muslim lay organization in the world.
Those wishing to credit me with letting them know about Kinesis may sign up using this Referral Link:
TOPIC SUGGESTION: Might you be interested in an article speculating on how some small country could front-run things by making BTC part of it’s Treasury Reserves? If I was a Latin American President I would do just that, AND establish a CBDC (Central Bank Digital Currency) coded so that it could only be traded on my nation’s national exchange owned by the government. That way the government could increase its reserves by charging fees in the other currency on such trades. This would be a way for small governments to immediately hedge against fiat decline while earning BTC on every move away from the national fiat. Might all this be an interesting subject for one of your articles?