Forbes/John Tamny/5-20-2022
“It’s safe to say that skepticism about Bitcoin is rising amid a stretch in which the value of the “coin” has fallen. After hitting an all-time high of $68,000 last November, the price has more than halved. As this is being written, one can be purchased for $28,000. To which some will mutter that this wasn’t supposed to be.”
USAGOLD note: He then tells how gold has held its own while bitcoin has tumbled relentlessly. The mystery is why so few understand the real reasons why. “To be clear,” says Tamny, “gold doesn’t rise as a result of inflation; rather gold’s rise is the signal of inflation.” If you look closely at the chart on gold, and with a fresh eye, you will note that gold first rose above the $2000 level in 2020 after it became clear that the Fed was going to print massive amounts of money to waylay the pandemic and a cratering economy. It anticipates, as Tamny suggests, and it does not necessarily need to inflation to catalyze its anticipation. A very well-written, well-conceived (and short) dissertation on why gold should be a part of the thinking man or woman’s portfolio.
Chart courtesy of TradingEconomics.com
