This is the final part of my series on gold. Bitcoin emerged over the last decade as a new store-of-value asset and has been called “digital gold” by its adopters. Its market cap sits at $730B today versus a market cap of $6.5T of gold that is used as a financial asset (as opposed to jewelry). Ardent supporters of bitcoin, aka “bitcoin maximalists” believe that bitcoin’s market cap will overtake gold’s, making it the world’s primary store-of-value asset. In this post, I discuss my framework for trading bitcoin, how it correlates to gold, and compare gold vs bitcoin as a store of value.
Great read Geo! Thank you for the great 3 part series. It's helped me with my framework with gold as a new investor/trader.
Geo, while I think you make a series of excellent points across the 3 parts of this series, I believe that you may be underestimating just how powerful the government impact can be. as CBDC's begin to proliferate, and I am certain they will be doing so over the next several years, governments will be spending real time and effort to eliminate their competitors, namely bitcoin, and perhaps ether. and while they likely cannot shut down the network, they can absolutely close the exit ramps. enhanced KYC with stricter AML rules and an edict that banks cannot open accounts, or even keep accounts open, if there is a whiff of Bitcoin activity in the account holder's activities is very realistic, and something that governments around the world seem quite likely to implement if they feel they are losing some control on their monetary policy/system. in your chart I might weight the government issue at 3x or 5x and then add things up.
Very useful and informative series of posts, thanks.
Geo - please update your thoughts on Gold & miners. Are we likely looking at breaking 2022 lows? Thank you