Bitcoin becomes pointless gold price plagiarist

See the latest Australian dollar analysis here:

Macro Afternoon

The yoking of Bitcoin and gold is one of the strangest phenomena in contemporary markets.

On the one hand, gold is the ultimate safe-haven asset. On the other, BTC is the least so.

One is eminently importable. The other absurdly the opposite.

One is pure physical reassurance backed by thousands of years of human history. The other is utterly ethereal and completely made up a few months ago.

One is an absolute value. The other absolute worthlessness.

One is regulatory protection and the other pure regulatory risk.

Yet they have begun to track one another as an alternative to US dollar fiat:

As a store of value, why would anyone buy BTC as digital gold when you can buy gold?

It might make some sense as a medium of exchange of value but that comes with no reassurance that it will be there tomorrow so is self-defeating.

If BTC price discovery is just to plagiarise gold then it has no reason to be at all.

David Llewellyn-Smith
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