Financial Underground's avatar
Financial Underground
financialunderground@nostrplebs.com
npub1wgjh...e082
We are more interested in getting the Big Picture right than gambling with short-term trades in rigged markets.
According to Forbes, there are around 806 billionaires in the US with a combined net worth of about $5.8 trillion. Even if the US government confiscated 100% of their assets with a wealth tax, it wouldn't even cover federal spending for just one year. It certainly wouldn't change the trajectory of the debt spiral, which is now an unstoppable trend.
For thousands of years, gold has always been mankind’s hardest money. That all changed on April 19, 2024, and most people have no idea. image
Savers face the daunting task of outpacing inflation AND the capital gains tax just to maintain their purchasing power. That’s made saving an impossible task for many people. Previously, people could simply save in money, which was either gold or a derivative of it. There was no need for a dentist, a construction worker, or a taxi driver to also become a hedge fund manager to try to keep their heads above water.
In a recent article, I analyzed the ten most decisive monetary attributes and examined whether gold or Bitcoin has an advantage. The table below summarizes the results. Bitcoin wins in 6 out of the 10 categories, including hardness (resistance to debasement), which I believe will be the most decisive factor. While gold has an advantage over Bitcoin in durability, that advantage will only be relevant in the case of an inescapable, global return to the Stone Age that lasts into eternity. Such an unlikely outcome is not relevant to investment decisions today. Gold also has a fleeting advantage in liquidity, fungibility and privacy, and recognition. However, Bitcoin is eroding those advantages every day. If current trends continue, I believe Bitcoin will overtake gold in these categories in the years ahead. Putting it all together, gold’s advantages over Bitcoin are either irrelevant or melting away. The inescapable conclusion is that Bitcoin has superior fundamental characteristics that make it a better tool for sending value through time and space. Digital gold is better than analog gold. In short, Bitcoin is likely to win the ultimate competition and become the world’s dominant money. image