9/15 ANDY HOFFMAN (CryptoGoldCentral.com): Bitcoin Versus Gold – As Laughable a Monetary Comparison as Gold Versus Lead
Alchemy is the age-old pursuit of turning lead to gold; i.e, transforming something with essentially no value, to something of great worth. It can’t be done, but many great (and not so great) minds have tried – as for thousands of years, gold was considered the only true “money” the world had. This is why, when I sensed monetary inflation was about to explode in 2002, I invested my entire net worth in, and switched my career to, the Precious Metals sector.
However, my view started to be challenged in late 2013; when, after following it for some time, I invested in my first Bitcoin. The experience, at Mt Gox, was a bad one (though I may get all my money back), but I still sensed Bitcoin’s potential to be a monetary game changer - and acted on it in a big way, when I heavily invested in early 2016.
I didn’t sell any of my Precious Metals – as at the time, I thought they could be monetary “complements.” However, when Bitcoin won the “scaling debate” late last summer, I changed my mind, realizing that an unquestionably immutable Bitcoin was a far superior monetary asset. This is when I sold my silver for Bitcoin, left Miles Franklin, and started CGC – named CryptoGOLDCentral because, while I KNEW silver was dead, I still thought gold could complement Bitcoin’s dominant monetary role.
However, by year-end, my views on this topic changed, too – in realizing that gold, too, was archaic in a Bitcoin-dominated DIGITAL AGE; and thus, sold it, too, for Bitcoin.
It’s truly amazing how I escaped this dogmatic vortex, as essentially the entire Precious Metal community unwaveringly believes its time will come. I mean, silver is trading at a 10-year nominal low - while BOTH are trading at ALL-TIME inflation-adjusted lows, amidst ALL-TIME low retail demand. This, in a (formerly) PERFECT PM environment – of rising inflation, collapsing currencies, and exploding debt.
https://twitter.com/Andy_Hoffman_CG/status/1040773423100645376
Adding fuel to the fire, I read last night that the energy required to mine gold is 20x that of Bitcoin – not including transportation, storage, and record-keeping; which makes the comparison starker. In other words, gold to Bitcoin is increasingly looking like lead to gold.
https://twitter.com/Andy_Hoffman_CG/status/1040727028314517505
For the record, I was NEVER a “gold bug” per se – as I NEVER believed gold to be the future of money...per this article, penned five years ago.
https://www.milesfranklin.com/is-gold-money-who-cares/
To the contrary, I simply believed it to be the best monetary alternative in a fiat currency world gone mad – as history’s largest, most destructive fiat Ponzi inevitably hyperinflated. However, now that Bitcoin has established itself as the FAR more practical monetary commodity, I believe gold and silver will go the way of the buggy whip.
https://twitter.com/Andy_Hoffman_CG/status/1040781033203879937
I'm trying to learn chinese in my spare time.
The more I read your articles Andy, the stronger my resolve. Thank you.
Phi23