OK, this was cringe af.
Saw a few gold headlines today that made me think of bitcoin:
- GOLD CRASHES
- GOLD FALLS HEAVY
- GOLD: BIGGEST COLLAPSE IN 12 YEARS
I mean, a 6% pullback after a 60%+ year-to-date performance; giving back some gains after a 25% jump in a few months?
Welcome to Bitcoinland, Goldbugs!
That's exactly the type of ridic headlines we get over here ALL THE TIME.
Also, sweet graph:
what has driven gold this year? In one word, it would appear to be “debasement.” The fear that inflation and lax money will lead to the intrinsic devaluation of the dollar and other fiat currencies has been turned of late into a “debasement trade.” It’s often said that narratives lead markets, and the dwindling dollar has become a powerful narrative.
Also, nobody is afraid of debasement because, uh, look at Treasury yields!
This is true, and weird, and crazy (#1263350)
gold isn’t the only way to trade debasement. Bitcoin was founded to counter fiat currencies, and its investors are used to price swings. But its relationship to political instability, particularly concerning China, a supplier of the raw materials for the crypto ecosystem, is almost the polar opposite of gold. Bitcoin does have some haven-like qualities. But gold’s universal appeal and liquidity are far more attractive during bouts of political uncertainty.
available freely via Newsletterhunt: https://newsletterhunt.com/emails/204972