I was recently in casual conversation with an uninformed critic of Bitcoin and Crypto.  This person proceeded to tell me that Bitcoin was a Ponzi scheme and that it was NOT digital gold or a real asset property.   He said it would go to zero by the end of the year.  Of course, this person has a zero track record of investing and has no position in the financial industry.  In short, he’s an average working-wage slave Joe who gets his news from the water cooler.  Yes, the real water cooler. He does NOT even use the internet.

So why does he even have an opinion on Bitcoin?

Well, like most things today, everyone is an expert without any bona fides so there is a lot of bullshit out there that is posing as educated informed opinion. It’s not. It’s non-cents.  It clouds and mucks up the serious discourse and analysis.

But when we take a serious look at Bitcoin and its global investors, we realize this market is now about $ 1 Trillion Dollars or about 1/10th the market cap of the global gold market.   Tim Cook, CEO of Apple, the 2nd largest company in the world just revealed he owns BitCoin.  US Senators own Bitcoin.  So many in-the-know own Bitcoin.  But my casual friend?  Nope, he does NOT own Bitcoin.  He says the digital world is fraud.  Yet, he’s broke and others like Tim Cook are in the uber wealth stratospheres.  So whose right here?



Well, consider this…

A growing number of fund managers and institutional investors now prefer bitcoin over gold. They see the cryptocurrency as a better store of value and a better inflation hedge. “I think it’s probably going to be ten times better than gold over a long period of time,” said the founder of one asset management firm.

Bitcoin started off as new disruptive technology. But now, it’s graduated to getting full attention from mainstream investors.  Companies are beginning to hold it on their balance sheets.

Bitcoin vs Gold: Bitcoin Is a Better Store of Value

Fund managers and institutional investors are increasingly opting to invest in bitcoin rather than gold, seeing the cryptocurrency as a better store of value and a preferred hedge against inflation.

During his company’s Q3 earnings call last week, Galaxy Digital Holdings (GLXYN) CEO Mike Novogratz talked about bitcoin being a better store of value than gold. While stating, “I still think gold was probably an okay asset to own in this environment,” he emphasized that “It’s just gotten crushed by bitcoin.” Novogratz added:

Bitcoin is just a better version of a store value and it’s being accepted at an accelerating pace … There are now over two hundred million people around the world that participate in the bitcoin ecosystem, and it continues to grow.

Skybridge Capital founder Anthony Scaramucci also expects bitcoin to outperform gold. He said last week that bitcoin “will eventually eclipse gold.” He has been saying that it is still very, very early for bitcoin, predicting that the price of the cryptocurrency will easily reach $500K. He urges investors to own some BTC now.

In a discussion about market capitalization, Scaramucci opined:

I think it’s probably going to be ten times better than gold over a long period of time … I’m not going to be surprised if bitcoin goes up at an exponential rate and gold goes up at a linear one.

Another famed fund manager who recently admitted that he prefers bitcoin over gold is Paul Tudor Jones. He said last month that he prefers bitcoin as a hedge against inflation in the current economic environment, stating:

Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment … It would be my preferred one over gold at the moment.

Global investment bank JPMorgan said in October that institutional investors have been dumping gold for bitcoin. “Institutional investors appear to be returning to bitcoin perhaps seeing it as a better inflation hedge than gold,” the firm’s analysts described.

In September, the pro-bitcoin Nasdaq-listed company Microstrategy said it avoided “a multi-billion dollar mistake” by choosing bitcoin over gold last year. The company now hodls about 114,042 BTC. CEO Michael Saylor said last week that he expects bitcoin to become a $100 trillion asset class.

“It’s pretty clear that bitcoin is winning, gold is losing … and it’s going to continue … It’s pretty clear digital gold is going to replace gold this decade,” Saylor opined.

Goldman Sachs’ head of energy research said recently that he has seen funds moving out of gold into bitcoin. “Just like we argue that silver is the poor man’s gold, gold is maybe becoming the poor man’s crypto,” the executive noted.

So what do you think?  Is Bitcoin the new Gold?  A digital Gold?  Or do you think it’s a Ponzi scheme?

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3 COMMENTS

  1. Big Thanks to Johnnie Punish for this article. Its a good chance that in some catastrophy that bitcoin would be looted or just dissappear if there was an electro-digital meltdown. Not only is there some question on delivery after WAR, but if your car is in a ditch how would you pay the guy with a tow truck to get you out with bitcoin? How long would it take for all cell phone towers to go solar after the grid was looted for firewood & scrap copper?? Would anyone ever get their wealth back out of btcoin if society collapsed??

  2. Read Antony Sutton, The War on Gold. Gold, and silver, are the enemy of those that run the world because they can’t monopolize it. Gold is dispersed into the hands of the people and you can’t hijack it or counterfeit it. I believe crypto was an invention of the federal reserve types to draw off demand for gold. Also, the weakness of crypto is its reliance on the internet and if you don’t think the internet can’t be controlled, try looking up some real information. The other day I was trying to find information on a very successful Merrill Lynch stockbroker who hammered it during the internet bubble and who was then fired by Merrill, he charged, for the purpose of redistributing his accounts. While that was going on his wife divorced and sued for piece of the action. The wife’s attorney then taunted him about having false teeth and he is alleged by co-workers to have said he was going to blow that attorney’s head off. In the end, a local newspaper said it best in its headline: “Lou Telerico hits the Trifecta.” The broker won all three attacks, beating out Merrill, his wife and the criminal charge of bodily threat. I tried to bring up the original article but couldn’t find it. It obviously had been scrubbed. At the appropriate time, I believe crypto can be scrubbed, or all crypto besides Bitcoin. The runup in Bitcoin, I believe, is from insiders who know the real story.

  3. With everything pointing to an upcoming war with Russia and China, you have to wonder what happens to Bitcoin after an EMP attack on our power grid and the internet? Not that after the apocalypse we wouldn’t have a lot of other things to worry about, like food production and distribution for instance.

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