Joe Burnett
VP of Bitcoin Strategy at Strive
Gold-making machines are real, undermining gold's scarcity. Gold goes to zero; unlike Bitcoin, whose supply is fixed at 21 million, new gold can be made. x.comÂ
Gold is hard to hold at a 0% yield while interest rates keep rising. @Mr_Derivatives notes gold's 3.93% drop at the close was the fifth-worst drawdown of the year, driven by rates. x.comÂ
Gold is extremely attractive now because rising market fear could make it a great hedge. It has fallen nearly 30% from its January all-time high and returned to the accumulation zone. If this level holds, expect a bounce soon. x.comÂ
Bitcoin benefits as the risk of creating gold through alchemy has entered public consciousness. That perceived threat to gold's scarcity supports a long Bitcoin position as a persistent theme. x.comÂ
There is no reason to hold gold. x.comÂ
Gold faces confiscation risk that Bitcoin held through memorized seed words may avoid. Americans had to surrender gold for $20.67 an ounce in 1933; a year later it was priced at $35. That risk does not overturn owning both. x.comÂ
Gold will see a diamond-like price decline if lab-grown gold takes hold. The quoted post says lab-grown diamonds halved diamond prices since 2016; gold is currently the largest asset class on Earth, so its money moving into Bitcoin could be consequential. x.comÂ
Gold is falling because a resilient, accelerating economy pushes yields and the dollar higher, and no one wants safe havens in a risk-on market. The Citigroup Economic Surprise Index is accelerating, and yields are rising even as crude falls, so the move reflects growth rather than inflation fears; the bond market is giving the Fed permission to hike. Gold, precious metals, Treasuries and defensive stocks have slumped, with staples and utilities at all-time lows relative to the S&P 500. x.comÂ
Gold avoids the rug pulls that have cost bitcoin its narrative. With bitcoin below $70,000 for the first time since April 7, per @KobeissiLetter, people are tired of the rug pulls, and gold does not have that problem. x.comÂ
Bitcoin's fixed 21 million supply makes it preferable to oil, gold and silver, whose higher prices encourage more production. Sell those three commodities and buy Bitcoin. A gold-normalized historical scarcity-resistance ranking scores silver 83.6 and WTI oil 72.1 against gold's 100; it tracks historical loss of purchasing power to Bitcoin, not physical scarcity. x.com x.com x.comÂ