It’s Time to Replace BTC-USD with BTC-Gold

As we watch the price of bitcoin hit new all-time highs against the US dollar, it’s hard not to feel like this pairing has lost all meaning. Yes, the demand for BTC is growing among companies and hedge funds, and we can say that the project is finally well-understood by mainstream finance. And yes, it’s nice to watch Bitcoin surpass the market cap of companies such as Facebook, Samsung, Alibaba, Berkshire Hathaway (rat poison squared, anyone?), and Tencent.

But lately, the USD has lost value against most fiat currencies. The Japanese yen? It seems like every month brings a new USD-JPY low. The euro also looks a lot better than the dollar, as the USD-EUR chart is abysmal for the American economy. And if you look at the Chinese yuan, the situation is even worse.

Economists can blame the situation on the covid19 pandemic, but the truth is that other fiat currencies have performed better than the US dollar under similar circumstances. The fact that the Biden administration is going to print more money for stimulus checks (and the amount estimated is 3 trillion dollars, so each citizen can get about $2000) definitely doesn’t help with preserving the value of the gold-decoupled Bretton-Woods reserve currency.

Every sign available, from the financial behavior of investment funds to the projected political decisions, suggests that the dollar is going down hard. With the exception of patriotism or blind trust in the soft or military power of the US government, I can’t think of any arguments to feel bullish about the USD.

When I wrote the article “Bitcoin Will Soon Reach New All-Time Highs – But USD Valuation Becomes Irrelevant“, I honestly did not expect the events to unfold so quickly. But here we are, watching how a 12 year-old decentralized digital currency makes Uncle Sam look weak and incompetent.

It’s time to start comparing Bitcoin with Gold.

Just because a fiat currency has a poor performance and shows very few signs of recovery doesn’t mean that we should look for another fiat currency to better understand the price of 1 bitcoin. At this point it’s clear that the fiat experiment is collapsing. It seemed like a terrible idea in 1971 when the Nixon administration started it, and now we can observe why it failed.

Historically speaking, gold is the most stable currency. Not only that, but it has the largest market cap in the world (you know, measured in US dollars). To better strengthen Bitcoin’s role as digital gold, we should act accordingly and point out when major swings occur.

Sure, bitcoin is bound to have more volatility while the number of people trading it every day across mainstream financial markets is still lower. But we need to get there.

The time has come to finally leave the US dollar in the dust and show the world how the inconveniences of the gold standard can get fixed under a bitcoin standard.

And if you’re interested in trading bitcoins for gold bars and vice versa, check out Vaultoro. If we’re ditching fiat, we should only focus our attention on hard money. And with Vaultoro, you can even have the gold amounts shipped to your house, or benefit from the insurance and Swiss security. They’ve been around since 2015, and their CEO Joshua Scigala is an OG bitcoiner who has participated in two Bitcoin Takeover Podcast episodes.

Use the URL and start trading today! While I don’t benefit directly from your sign-up via referral link, it helps me get sponsored with the podcast and the content that I create. Just keep in mind that trading involves risks, this is not financial advice, and you are responsible for your own decisions.

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Vlad Costea

I'm here for the freedom, censorship-resistance, and unconfiscatability. What about you?

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