Bitcoin and the end of gold

Are we witnessing gold’s last stand? This is what the emergence of Bitcoin strongly suggests.

Barbarian Relic

While Vladimir Putin seems to be very interested in bitcoin, Igor Sechin, CEO of Rosneft, the largest Russian oil company, shined gold at the 17th Eurasian Economic Forum in Verona in the United Arab Emirates.

For Igor Sechin, gold can once again become the dollar’s main competitor in world trade.

“Using the dollar as an instrument of sanctions is a serious error, for the simple reason that trade will never stop. Energy security and life in general depend on it. Alternatives will always be found. Gold, which humanity has used for thousands of years for its settlements, will be the main competitor of the dollar”said Mr. Sechin.

The barbarian relic is well seen in Russia. The central bank holds more than 2,300 tonnes, the equivalent of $200 billion. This is as much money as could not have been frozen by the Western camp following the invasion of Ukraine.

However, while gold has stood the test of time, it is a poor payment system. Moving gold from one country to another is slow and extremely expensive.

Conversely, it is possible to instantly transfer any quantity of bitcoins for a few cents in transaction fees. Transferring 1, 10, or 10,000 BTC costs the same.

Gold has immense flaws and there are calls in the United States to sell off Fort Knox gold and accumulate bitcoins instead. Particularly from Senator Cynthia Lummis.

Here is a comparison of the capitalizations of gold and Bitcoin. Bitcoin’s $2 trillion now represents about 12% of the world’s $16 trillion in gold:

Gold vs Bitcoin

Bitcoin is infinitely more valuable than gold. Not only because its digital nature allows instant and inexpensive payments. But also because there will be no more than 21 million bitcoins while more and more gold is extracted each year.

Bitcoin is a potential international currency and Michael Saylor clearly articulated this on Yahoo Finance:

“Bitcoin is emerging as the global network of capital. The US government should buy 20-25% of bitcoins before the Chinese and the Russians. We should swap our gold reserves for bitcoins. This would allow us to acquire 5 million bitcoins. In doing so, you would demonetize the entire gold asset class. Our enemies own gold, so their assets would be reduced to zero while ours would reach a hundred trillion dollars. We would control the global network of capital as well as the international reserve currency. »

This scenario is more relevant than ever now that Donald Trump has made the promise to “do not sell bitcoins that the government already owns [200 000 BTC]or that he will acquire » at the Bitcoin conference in Nashville.

It remains to be seen whether Russia and China will allow the rug to be pulled out from under them after having accumulated large quantities of gold since the second Gulf War…

State FOMO would quickly propel bitcoin towards the million dollar mark. Standard Chartered bank believes the value of bitcoin will double in 2025 to $200,000.

The main catalyst could be a turnaround on China’s side. Don’t miss our article: “Bitcoin – China’s back to the wall”.