My Barber Is Buying Bitcoin

I’ve been meaning to write this article for quite some time, but it wasn’t until I got a haircut last week, that I had sufficient anecdotal evidence.

Bitcoin is an incredible technology and it has also passed the test of time to prove itself as a lasting fixture in global finance. While I do not own any, I am very, very pro-Bitcoin in its potential to erode government’s monopoly on money and prevent the constant theft perpetrated by inflation.

My theoretical support above for Bitcoin sounds eerily similar to my case for gold. For millenniums, gold has acted as an inflationary hedge and as money. And for that reason, many investors have cited Bitcoin as the reason that gold is being left in the dust, going so far as to call Bitcoin digital gold.

Gold investors like to have a boogeyman. Whether it be manipulation by the banks, midnight market suppression, or now, Bitcoin, it helps to drive the narrative that someone is against them and justify why gold is not moving at the breakneck speed they believe it should. Let us not forget that gold is up 600% since the turn of the century.

Bitcoin enthusiasts love this narrative too, because it adds further justification to Bitcoin’s meteoric rise. Gold has been an established form of value for thousands of years – longer than any other asset class. If Bitcoiners can convince investors that it has replaced gold’s standing in a matter of a decade, crypto’s position of importance is justified in simple form.

With all that being said, it is my opinion that Bitcoin is not the boogeyman gold bulls are painting it as.

The crypto market is now roughly $2-trillion in size, remarkable considering it did not register just a few short years ago. Gold investors continually pit that value against a roughly $10-trillion gold market to make the case that in other circumstances – such as a world without Bitcoin – that money would have come into gold.

The reality is that there is little correlation between Bitcoin and gold. Instead, Bitcoin has been rising with all assets – all assets except for gold of late! It would make more sense to assume that the $2-trillion in crypto money has been removed from the pool of the global equities market which now exceeds $100-trillion. That narrative is not so appealing to gold or Bitcoin enthusiasts, but it is likely a far more accurate assessment.

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Disclaimer: This material is for discussion purposes only. This is not an offer to buy or sell or subscribe or invest in securities. The information contained herein has been prepared for ...

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