Gold good Bitcoin Bad

At 2020 a study calculated that Bitcoin amounted to 0.4% of all world money. A couple of key things that determine the price of Bitcoin are competing Crypto's (there are a lot of alternative Crypto's on the market at the moment) and Government regulation. At the moment Bitcoin is fine lets all agree, a lot of people have made a lot of money ( good for them).

Despite the obvious (of recent) lack lustre performance of Gold a lot of speculators are predicting huge gains in Gold over the next few years, ask yourself how is that possible when the world economy is recovering post-Covid and mining world wide is booming and set to get even better as Covid cases decline.A period of STABILITY is not conducive to rising Gold Prices INSTABILITY is.

Here is why. As the value of Bitcoin rises against the US dollar it can only result in ONE PLAY for the Government they must either up the value of the dollar artificially (not going to happen) or through regulation devalue Bitcoin with some kind of financial intervention.

At that stage Bitcoin and all the other Crypto's will start to devalue but unlike Gold they wont stop, they are not a commodity in fact they are not even a real tangible thing, they are like an IOU in your safe ( you cant sell an IOU when things get tough).

What happens then? the US dollar devalues on the back of the Crypto decline and all the money flows to GOLD.

At the moment Bitcoin is at .4% WORLD MONEY (WM) as it slowly increases in value the chance of it being regulated increases, sooner or later it will happen, so like a Pyramid Scheme you dont wont to be the last one caught carrying the IOU.

What to look for if you are a Bitcoin Holder
1. A period where the BITCOIN value remains unchanged.
2. As a result of 1. an increase to the number of Bitcoins (If they were real) released to market and,
3. (The biggest threat) The production of a Government regulated Bitcoin, same as a Government Bond really so the platform already exists.

What to do about it.
1. Make your money in Bitcoin then run
2. Look for solid Gold Companies with good long term prospects like NST

In conclusion as usual this is my opinion only but remember this has already happened in history with Banks Issuing unlimited Bank Notes. They eventually regulated the Banks but also saw an opportunity to produce their own.

cheers