No, Bitcoin Isn’t a Replacement for Gold

One of the mainstream media’s favorite tactics is to divide and conquer. If they can split us into a gold faction versus a Bitcoin faction, then they can keep us fighting against each other instead of staying on the same page.

In reality, gold and Bitcoin isn’t an either/or proposition. They’re both inflation-resistant assets than can help you avoid counterparty risk hedge your portfolio against the government’s print-and-spend policies.

Yet, they can’t promote two narratives at the same time. After all, extreme positions always generate more buzz than nuance and authenticity do.

That’s why they’ll shout to the rooftops about Bitcoin reaching $70,000 but won’t tell you about gold heading toward $2,200 per ounce. They’ll both breaking to fresh highs, but the media won’t run stories about both gold and Bitcoin, and big banks certainly won’t encourage you to buy both.

And if they have to choose between the two, they’ll pick Bitcoin. For instance, JPMorgan is practically touting Bitcoin as a replacement for gold in portfolios. This is ironic, since Jamie Dimon once compared Bitcoin to a “pet rock.”

Courtesy: World Gold Charts

One thing’s for sure: governments and central banks aren’t busy buying Bitcoin. Instead, China and other nations are loading up on gold as real insurance against an imminent, seismic event.

You won’t hear about that story in the financial headlines, though. Right now, the hot topic is AI and technology in general. That’s why NVIDIA stock continues to catch a bid irrespective of the company’s high valuation.

Bitcoin has a place within that narrative. While gold has enduring value and an age-old heritage, Bitcoin is relatively new and technology-based. The media doesn’t really like Bitcoin, but at least they can build a story around it that fits their agenda.

Meanwhile, big banks and brokers can capitalize on Bitcoin’s popularity with ETFs. In order to promote this, they have to tout Bitcoin as the greatest thing since sliced bread. This explains why JPMorgan now suggests that Bitcoin is so important that it’s affecting the Fed’s interest-rate policy.

There’s nothing wrong with promoting decentralized finance. Yet, in its own way, gold is decentralized. Governments and central banks can hoard gold, but they can’t issue it or debase its value like they can do with fiat currency.

Courtesy: @Bitcoin_Teddy

In other words, Bitcoin may be an “escape hatch” from runaway inflation, negative interest rates, and Big Tech surveillance – but it’s not the only one. Gold can be an “escape hatch” as well, and it has served this purpose for centuries.

Still, Bitcoin will be a headline grabber for a while because spot Bitcoin ETFs are still a new phenomenon and the media can spend the next month or two talking about the upcoming Bitcoin halving event.

Plus, $77,000 is a big and eye-catching number for Bitcoin. It just looks more impressive than $2,200 for gold, though long-term gold holders are doing quite well now and can look forward to substantial gains in the future.

Yet, big banks and the media aren’t concerned about the long-term future, or about your financial well-being. They’ve got a story to tell and an agenda to promote. At the same time, you’ve got a portfolio to protect – and both gold and Bitcoin can serve that purpose.