Is Cryptocurrency The New Gold? No.

I answered the question of the title of an article I just read in my title because the actual article never really got around to answering the question itself. So, why am I here writing about it, because the Forbes article mentioned explained something in one short paragraph that I have beed trying to explain myself for some time. Here it is:

We don’t know how much gold there is on Earth, but we know that there will only ever be 21 million Bitcoins. On the contrary, nobody knows how many US Dollars there will ever be. In the latest round of stimulus another US$3.5 Trillion will be added to the money supply (Just to put that into perspective, adjusted for inflation, that is about the same amount of dollars as the US spent on World War II).

I think this is one of the reasons that so many economists and financial advisors are finally starting to get on board with crypto, maybe slowly and in small steps, but, they are no longer outright dogging it. (I say most, I am sure Warren Buffet is somewhere out there still fuming about crypto.) I don't think it is coincidence that crypto is hovering around all times high as the US government continues to spend more than they will ever take in in revenue.

Back to gold, just for fun (I know I am jumping around here.) All the gold in the world is worth an estimated 9.2 trillion, not a small number, but, it would only cover about 1/3 of just the US dept. The estimates also claim the we have already mined about 75 percent of the gold available. Who knows if that is true.

Resources

https://www.forbes.com/sites/sap/2021/10/19/is-cryptocurrency-the-new-gold/ https://onlygold.com/gold-prices/all-the-gold-in-the-world/

Posted Using LeoFinance ^Beta