“And when they came to a place called Golgotha (which means Place of a Skull), they offered him wine to drink, mixed with gall, but when he tasted it, he would not drink it.”
~ Matthew 27:33–34, ESV Bible
Written by Bryan Lutz, Editor at Dollarcollapse.com:
As the world turns, the financial world’s most hated asset continues to outperform. All while gold stagnates.
Hardly the encouragement we’d hope.
Or, maybe for some, it is…
This time, Bitcoin boasts gains even over Berkshire Hathaway’s Warren Buffett.
You can almost hear the tears of the Gerontocracy.
Yes, Bitcoin is up now…
I don’t know about you, but Bitcoin and gold’s ups and downs feel like cruel, severe, and stressful test – a crucible.
Maybe those who’ve owned gold for more than twenty years are used to this sort of thing.
Gold should be much higher.
Yet despite gold’s pullback, it stands to reason gold will reach $3000 per ounce or more before the end of the year.
That being said, the gold should be much higher compared to the amount of money printing, quantitative easing, and over-leveraging of the US bond market that’s taken place of the past several years.
So, for anyone thinking the feelings are entirely different between the two assets, gold and Bitcoin, they’re not.
The grindstone is real.
Even though, there may be more untempered excitement in the Bitcoin world, those who have “hodled” digits for more than the four years of a halving cycle are as weathered as any twenty year gold bugs.
As far as Bitcoin goes, who decides to hold onto such a volatile, and seemingly unpredictable asset for so long?
Look at these price variances…
30% ups and downs are no big deal for most veteran Bitcoiners.
Then again, during crypto winters, the down cycle can see up to 80% drops in prices like what happened in late 2022 – 2023…$60k all the way down to $18k. Yikes.
The majority of Bitcoin bandwagoners couldn’t take it.
So they sold.
The crucible has been longer and harder for gold bugs.
One would have thought that after the US government went full throttle on quantitative easing that the value of gold would have gone even higher.
It didn’t.
More people piled into the USD and the US bond market, which led to years of stagnation and sideways movement for gold.
And that, I am sure, contributed largely to the grizzled gold bug attitude we have in our midst today.
Finally, when the US goes back to a hardened gold standard, one day they will be proven correct.
Gold is money.
Is Bitcoin?
For those in the sound money money world, the camps are divided. But one thing is sure for both: the crucible is real.
One thought on "The Crucible and the Coin: The Struggle for Sound Money is Real… Take a look at Gold and Bitcoin…"
I have a 401k that holds paper gold and HODL with a couple mining etfs. I jumped into bitcoin in 2023 because it began spiking and although I still cannot wrap my head around from where Bitcoin’s value is derived. I have come to the conclusion as long as everyone else continues to ‘perceive’ its valuable, more people will want it which creates greater demand. The demand then becomes the value. Then I start thinking, the same argument could be made for gold. I read that 2000 years ago one could buy a toga for one gold coin and yet today if one wanted to buy a tailor made suit it would take one gold coin. That is 2000 years of ‘perceived value. Why not Tulips? a pair of Air Jordans? a Prius? (three of the most worthless things I could think of) Worth is measured by the one needing whatever it is we have to offer. Whether its food and water to a starving man or a BMW M3 for a corporate scaffold climber trying to make his way to the top. For now, im long GOLD….and a little bitcoin on the side. Anyway….I do enjoy the articles sir !!! Take care