Gold-O-Mania Is Coming

The buoyancy of markets in recent years has lulled central bank heads into a false conviction that they had saved the world after the 2006-9 Great Financial Crisis.

But central bankers continue to navigate like drunken sailors between the evil forces of Scylla and Charybdis as in Homer’s Odyssey.

Few of the bankers have understood that printing unlimited and worthless paper money will not allow them a pass the strait of Messina without major, or more likely catastrophic, damage to the world economy.

As exuberance continues to dominate intoxicated stock market investors, they haven’t yet noticed that all is not well on the perilous seas.

Still, most markets continue to respond positively to the printing press rather than to the underlying fundamentals.

Printing presses don’t create real value, instead, they create bubbles full of worthless air. But sadly intoxicated investors confuse air, which is free and has no value, with real, intrinsic values. 

To take an example, what is the intrinsic value of Bitcoin or BTC? How should BTC be valued?

Does the $60,000 price today reflect the real value or was the 10 cent price 10 years ago more correct?

Bitcoinomania

Are we today seeing Bitcoinomania similar to Tulipomania in the 1630s?

If not, can someone tell me at what price Bitcoin is fully and properly valued?

The Bitcoin aficionados will tell us that BTC is modern money and superior to any other currency. Well maybe they are right, but history must prove that. The 11 year history of Bitcoin is hardly sufficient to prove that it will fare better than any other money. We must remember that so far in history no currency has ever survived in its original form except for gold.

And the 5,000 year history of gold as money certainly makes it superior to all fiat currencies as well as cryptocurrencies.

During 5 millennia gold has represented constant purchasing power in grammes or ounces. That can hardly be said about Bitcoin which is up over 650,000 times in the last 10 years with a volatility which is totally unsuitable to call it money or use as money.

Having said all the above, BTC has been and might continue to be a superb speculative investment which is totally unsuitable as money. History will tell if I am right.

Central Bank Digital Currencies– CBDC

Central banks are obviously seeing that this currency is destruction coming since they have caused it. This is why they are desperate to introduce CBDCs in order to yet another time fool the people. They will just tell us that the old debt in old dollars has remarkably  disappeared and now we have new miraculous monetary system.

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