Palantir Technologies is a public American software company that specializes in big data analytics. It does a lot of work for US Intelligence organisations. It recently made the News media because it used US$50m in shareholder funds to buy Gold.
You would think Palantir would be big on blockchain technology and in turn cryptocurrencies.
Gold is relatively undervalued relative to Equities and M2.
Ben Bernanke once famously said that the only value in Gold is tradition. Central Banks are still buying it.
Bitcoin is at the forefront of cryptocurrencies. It developed first mover advantage into a large network effect that makes it dwarf other crypotcurrencies.
John McAfee (in an interview before his passing) however, said that Bitcoin MUST fall to zero. Monero has superceeded Bitcoin in the Dark Web. Monero succeeds because it is open source code, decentralised finance, untraceable. Bitcoin now has zero utility. It is useless. It stands alone as a pyramid scheme supported by the Coomer generation, awaiting its "Jenga" moment.
The USA's critical infrastructure systems are attacked by hacker terrorists. Ransomware attacks are commonplace. AI intellectual superiority targets Servers and will develop further in years to come. Cryptocurrencies are vulnerable to a "Fight Club" moment. If a Monero were backed by Gold, it would succeed to enable a cash free world.
If Bitcoin has network effect driving its popularity, then what of Gold? It has 5,000 years of network effect. Silver and Copper were needed for smaller change. This would not be necessary in the case of a Gold backed cryptocurrency.
Gold cannot be destroyed. New supply is limited (coincidentally) to the growth in human population. Throughout history, commodities (Cows, PMs) have been used by humans as currency.
So, Palantir decides to buy Gold. What do they know?
Nixon took the world off the Gold Standard in 1971 and put in its place the Petrodollar. The Saudi's would ensure that Oil was only traded for US dollars and in return the US military would ensure safe passage.
Saddam tried to sell Oil in Euros. Gaddafi tried to sell Oil in Gold. Iran tried to sell Oil in Yuan ... and do.
Last week, Saudi Arabia signed a military co-operation agreement with Russia.
Trump created USAMCa. A trading bloc that provides energy, resources, food and technology security. China now dominates world trade. America retreats ... just like Afghanistan, leaving the world to its own device.
The USA must lose their reserve currency status ... soon. The final straw? What then? The CNY has less credibility than the USD.
US Bank debt has exploded. They need inflation to devalue debt. The only buyer for US Treasury Bonds now is the US Federal Reserve.
