Bitcoin has killed gold (for now)

See the latest Australian dollar analysis here:

Australian dollar NUked

In a crazy world, the rational is irrational and the irrational rational. That is how I would describe the state of play in the gold versus Bitcoin debate with the latest installment coming from Doubleline doyen Jeffrey Gundlach:

The short-term evidence is solid. A falling USD and tumbling (negative) real interest rates are the two traditional drivers of the gold price. Yet gold has completely failed to fire as these circumstances have unfolded while BTC has gone nuts instead:

For me, this is absurd over the long run. BTC has almost nothing in common with gold as a store of value:

  • Gold is physical, BTC is not.
  • Gold has 3000 years of human adoration, BTC three years.
  • Gold will have value in a systemic crisis, BTC will be worthless.
  • Gold is a central bank currency, BTC is not and never will be.

It’s probably the last point that matters most. BTC can never be an official reserve asset because it implicitly undermines every fiat currency on earth. This makes it immensely vulnerable to regulatory risk. Given BTC’s only real function is as a smuggling currency to avoid tax and other border controls, there’s a kind of inevitability to it. The more successful it is, the more likely it is to fail.

The same charges can be leveled at gold but at nowhere near the same scale. Gold’s very physicality and lack of portability prevent it from becoming a sufficiently broad medium of exchange to threaten the system. On the other hand, cryptocurrencies are so instant that they are potentially pure anarchy.

How big does BTC need to get before it is killed? Who knows? Today crypto is worth a paltry $1.4tr:

Versus a gold market at roughly $10tr.

Does that mean BTC and crypto need to grow ten times more before they are snuffed out? $10tr is still bloody small so maybe it’s a lot more. I have no idea.

What I can observe is that BTC spent three years trading in line with the gold price which, in turn, was capturing the drivers of the reserve currency. Now BTC is rising even as the USD does. So, there is no coupling to anything other than perceptions of USD instability that I can see.

“Stimulus asset”, sure, I guess, but yoked to what? Simplistic perceptions of monetary and/or fiscal chaos with no price value itself? Pretty ironic stuff.

BTC may have killed gold for now. But it’s turn will come and when it does it will fall far further than gold ever could or would.

To zero.

Houses and Holes
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Comments

  1. “BTC may have killed gold for now. But it’s turn will come and when it does it will fall far further than gold ever could or would.

    To zero.”

    And I thought you’d changed your spots…

    “Gold is physical, BTC is not.
    Gold has 3000 years of human adoration, BTC three years.
    Gold will have value in a systemic crisis, BTC will be worthless.
    Gold is a central bank currency, BTC is not and never will be.
    It’s probably the last point that matters most. BTC can never be an official reserve asset because it implicitly undermines every fiat currency on earth. ”
    As someone owning btc I’d love to see a justification rather than an assertion of these “facts”.
    Particularly how Gold doesn’t undermine fiat while bitcoin does.

      • Of course, the fanbois just took a tiny fraction of their profits and paid off a mortgage on a house in sydney, so they probably aren’t all that worried about his opinion…

    • What the hell,
      Gold is physical, BTC is not. -> Newspapers are physical, blogs/websites are not.
      Gold has 3000 years of human adoration, BTC three years.-> Newspaper has hundreds of years of adoration, blogs 5.(given I;ve held btc for way more than 3 years I feel some licence is justified)
      Gold will have value in a systemic crisis, BTC will be worthless. -> Maybe, maybe not. We will see.
      Gold is a central bank currency, BTC is not and never will be. -> Gold is far more difficult to store and transfer than BTC so I think a claim that it is a currency is more than a little questionable given I wouldn’t even call BTC a currency.

    • Gold will also last to earths end, it never corrodes it never perishes its an element and can’t be manufactured, it’s ever lasting. Kings Queens, Emperors, Pharaohs, people of stature will always be remembered by what they made from gold. Bitcoin?

      • The gold from the new world was long ago melted down to enrichen the europeans.
        Gold CAN be manufactured.(but not cost effectively) https://en.wikipedia.org/wiki/Synthesis_of_precious_metals#:~:text=Gold was synthesized from mercury,of either platinum or mercury.
        Really, stone is what you want if you want to be remembered to earths end. Far more pieces of Egyptian stonework than gold left.

        Bitcoin? It’s a hell of a lot easier to store,protect and transfer $500,000 worth of it than gold.

    • Article is not to the point. I suggest a reading of Reggie Middletons patents from 6 years ago might be informative.

      No debt crypto with blockchain replacing contracts and banks. Majority of blockchain crypto owned has zero to do with moving money out of China.
      Lots bought in early, I knew when Bitcoin was a few hundreds t would go to 100k then subdivided into fractions but respite getting the metal wallet etc culdnot in Aus get a buy, same when it was around 1000 had problems with platform. Now it’s easy in Aus. Anyway there are alternatives.
      I was ridiculed here by suggesting voting using blockchain which was discussed wit Hillary but discarded, no vote switching, suitcase or midnight van votes.

  2. * You can walk through any port/border in the world with 12-24 words memorised and thus an infinite amount of Bitcoin without being searched or taxed. Try doing that with gold.

    I get the points, but it does have that one major utility especially in shitty countries and for people fleeing them.

    Payment gateways have been slowly edging into the world. With the likes of Visa/MC getting in on it, it’s likely the next crash will be accelerated by people actually spending their crypto. I suppose that’d be the next phase. General spending of the hot potato like a hyperinflating currency.

    Of course, if I was a central bank like the fed with unlimited cash, I’d do a deal with visa/MC to buy the coins at market during a crash and remove them from circulation. Can’t have competitive threats like that.

    That will only put a floor on the price, but the fed has unlimited cash. Bit by bit, they’d corner the market.

    Still, why is MB so far refusing to just say “bugger it, there’s money there, let’s get some” ?

    It’s not that hard. Sell subs, or per article and instantly sell for AUD. The only possible outcome is more revenue.
    https://www.shoutmeloud.com/bitcoin-cryptocurrency-wordpress-plugins.html

  3. * You can walk through any port/border in the world with 12-24 words memorised and thus an infinite amount of Bitcoin without being searched or taxed. Try doing that with gold.

    I get the points, but it does have that one major utility especially in crappy countries and for people fleeing them. That’s ignoring places like Venezuela where it’s practically necessary to have a payment system outside of the govt’s control.

    Payment gateways have been slowly edging into the world. With the likes of Visa/MC getting in on it, it’s likely the next crash will be accelerated by people actually spending their crypto. I suppose that’d be the next phase. General spending of the hot potato like a hyperinflating currency.

    Of course, if I was a central bank like the fed with unlimited cash, I’d do a deal with visa/MC to buy the coins at market during a crash and remove them from circulation. Can’t have competitive threats like that.

    That will only put a floor on the price, but the fed has unlimited cash. Bit by bit, they’d corner the market.

    Still, why is MB so far refusing to just say “bugger it, there’s money there, let’s get some” ?

    It’s not that hard. Sell subs, or per article and instantly sell for AUD. The only possible outcome is more revenue.
    https://www.shoutmeloud.com/bitcoin-cryptocurrency-wordpress-plugins.html

    • You can walk through any port/border in the world with 12-24 words memorised and thus an infinite amount of Bitcoin without being searched or taxed

      Even those two points strongly suggest that somewhere along the line, it will be brought to heel. It will either be dragged kicking and screaming into the fold or taken out the back with a 12 gauge.

    • “* You can walk through any port/border in the world with 12-24 words memorised and thus an infinite amount of Bitcoin without being searched or taxed. Try doing that with gold.”
      The existence of the drug cartels suggest that this isn’t actually all that hard for people who actually need to do it.
      In terms of both drugs and money.

    • “Still, why is MB so far refusing to just say “bugger it, there’s money there, let’s get some” ?”
      Because they have an ideological hatred of it. It rubs their economist sensibilities the wrong way and goes against their innermost beliefs, but not in any logical and definable way.

      • Turning that on it’s head, you could argue the fanbois are infatuated with it beyond reason. That said, I can see the arguments for both. However, the big stick wielders are hovering in the background waiting for the word ……… to start clubbing or to back away slowly.

        • If Tesla and Wall street are seriously invested, what chance do you think there is of the big stick being applied?

      • It doesn’t have to be an investment for MB.
        You can literally just take it and auto-convert it directly to cash.

        I get that you don’t believe in holding it. But there’s no reason not to accept it as a cash equivalent payment.

        Put it this way, if I knew you personally, and I offered you Perth Mint silver coins worth a bit more (small inconvenience premium) than the price of a year’s subscription, would you take it?

        You know it’s fungible. You could probably find someone at the office that would take it at spot. Half the internet’s prepared to take crypto at spot – and there are payment gateways that do it automatically so all you see is AUD.

        It’s just another payment option like square, mastercard, visa, eftpos, coins, or whatever.

        It’s perplexing that MB, born of the internet is reluctant to adopt something else born of the internet that has little to no downside. What’s the most value that could be lost in the few seconds it takes for the conversion?

        • Even StevenMEMBER

          I don’t want Bitcoin. It has no stability as a means of payment. It’s worth 20k one day, 50k the next… how about next week?10k?

          Sure, I’d accept it only if auto-converted instantly to cash.

          • Hahaha!
            Quite the miscommunication there.

            I was so confused why you’re being so stubborn you wouldn’t take a practically risk free revenue source.
            Laziness is more comforting somehow.

  4. Gold is a tricky asset to trade.
    There are many factors that appear to influence the gold price.
    Currently, one of those factors-inflation is a not a problem and may not be a problem if you believe future debt driven fiscal stimulus will be ineffective in driving economic growth, inflation and bond yields higher on a sustainable basis.
    So, maybe the real problem for gold is the lack of inflation.

    • Yep. And with GW and the desperate need to reduce CO2; and with oil now peaking, (which according to BP and the IEA etc has happened), and with post-pandemic business collapses, unemployment etc, this should presage a gradual decline in growth.

      So no V-shaped recovery or a planet-destroying boom in commodities….so hence no inflation, or gold price rises for a long time.

  5. and yet the biggest question is what is the biggest crypto sub 0.001 that’s going to take off to the moon – oops mean the sun and beyond

  6. Bitcoin is loosely coupled to price of electricity. My issue with it from a price perspective is the exponential inflation via artificial reward halving. Yet another reason it should have been banned.

    Having said that, it was becoming obvious that the demand for gold was dropping due to the bitcoin hype. I bought a little a while ago to hedge my gold position.

    • “Bitcoin is loosely coupled to price of electricity. My issue with it from a price perspective is the exponential inflation via artificial reward halving. Yet another reason it should have been banned.”
      Bitcoin has virtually no coupling to electricity pricing in the long term. Mining difficulty will adjust to meet available supply.
      I find it a bit laughable that your issue is a fixed limit on supply while being a gold investor though.

      • Last time I checked bitcoin was being mined with electricity. It was no coincidence that it crashed from $20k all the way down to it’s mining cost of ~$3k USD.

        We have not reached the limits of gold so not sure what your point is. Much like bitcoin there a mining cost linked to the price of energy. There is a speculative price element based on expected real interest rates, and when real interest rates turn positive the price of gold typically falls to it’s mining cost.

        The difference between the two is Gold’s mining cost is stable. It is not like there is a cartel or monopoly that says “ok folks the mining cost of gold doubles next week”.

        • https://www.blockchain.com/charts/difficulty
          The mining difficulty is always adjusting. There is no base price to mine bitcoin, it can go to 0 if everyone stops mining it. How much do you think people were paying to mine it when it was worth $0.000001.
          Unlike gold a fixed amount of bitcoin is produced no matter what the cost is to mine.

          • And the mining difficulty is built into the algorithm right? They could have made bitcoin’s price a beautiful inflation hedge with a static reward linked to the price of electricity. And the creators chose not to because… it is the perfect scam to enrich early adopters.

          • They chose not to because it is digital gold. Not digital fiat.
            They made it beneficial to be an early adopter because they were smart enough to know that was the only way it would see widespread use and promotion. History has proven they knew what they were doing.
            Mining all the coins and then selling it is the scam model adopted by many of the following “coins”

          • Much like every pyramid scheme the creators absolutely knew they needed to share the spoils for it to succeed.

          • So it’s a known thing that the creator mined 1 million bitcoins. It’s also known, simply from analysing the blockchain, that those coins haven’t moved in over 10 years. Current value, around $50 Billion. But sure, it’s just a scam. I guess they are waiting for it to hit 100 Billion before they sell.

          • I thought it was Bitcoin’s strength that you don’t know who owns what. You know for certain the creator only had one wallet? It would make a great illusion to have many wallets and let everyone know about the one you don’t touch. Or do you see it as an impossibility that an anonymous con artist would lie?

          • You understand the people before you into anything have an advantage over you, right freddy?
            And frankly the creator/s of bitcoin deserve to get rich. It provides more value than tiktok or farcebook.

          • We aren’t even sure whether those original coins will ever be spent. Who knows – the original creator could be dead by now. No one knows really who Satoshi is, and when he ever spends them the anonymity will peel away. BTC is pseduo anonymous after all, and transactions can be traced since it is a public ledger.

        • Freddy – that’s not entirely true. The difficulty factor is determined by the price of electricity and the current price. The higher the bit coin price is the more likely it will be mined and higher electricity priced miners could still make a profit.

          Therefore price rises in BitCoin make it more worthwhile to mine. If prices rise some marginal miners may no longer be profitable in which case the difficulty to find the “magic nonce” would come down.

  7. FUDINTHENUDMEMBER

    Upside of gold price is what maybe 2X, 3X? Bitcoin is at least 10 bagger (in folks minds). Plus all the crypto offshoots (defi/NFT stuff) could be 100 baggers. Nobody, in any market in 2021 is looking for 2x returns over a time frame of years.. Everybody’s chasing rapid gainz ala smallcaps, crypto, certain commodities.

    I do reckon though, that once crypto market tops and crashes (like it always does) gold will get a bit of a bid. Everything is getting a bid eventually, it’s rolling bubbles at the moment. Still reckon it’s worth having some (less than 10pc) of the actual stuff regardless.

    • Great summary. The value or perceived value is linked to the opinions of market participants – the opinions in the minds of traders won’t always remain as they are, madness of crowds etc, and crypto, being man made, has no real scarcity even if Bitcoin does. Something will probably kill it, maybe not in our lifetime though….that’s a risk. Imagine, if man can create such a wonderful “asset” he may also be able to invent something just as clever to destroy it……

  8. What I don’t understand about bitcoin is that while no more will be minted, it can be fractionalized to infinity. Won’t this eventually be understood with the consequences for its price?

    • What consequence for it’s price.(ignoring the fact it can’t actually be fractionalized to infinity any more than a $ can)
      cutting a gold bar in half doesn’t make it worth half as much. Cutting a block of land in half doesn’t make it worth half as much.
      Changing a $10 note for 2 $5 notes doesn’t make them worth half as much.

      • I might be wrong but I understand that the smallest unit of bitcoin is one one hundredth million. There will eventually be 21 million bitcoins. As the price goes up, people will eventually be buying bitcoin in these small units. At some point people will realise that the supply is in fact endless. Multiply 21 million by 100 million and price that at a dollar per unit. I would like to know the answer to this.

        • Why? It doesn’t mean anything.
          imagine if you could electronically transfer 0.000000000000001 AUD. the currency would become worthless overnight.
          Or It is completely technically feasible but pointless because it doesn’t actually decrease the value at all. The only time it would make sense was in the value of AUD was INCREASING, not decreasing.

          • Why would it be worthless?

            Imagine you’re buying one surface mount capacitor. Value… .0001c

            Would that sale make everything else worth less? Or is it just the price of one tiny capacitor?

  9. My question is, As Crypto is essentially a tech innovation, wouldn’t it become obsolete or open to hacking over time as computing changes into the future? Are there any data processes that have lasted more than say, 25 years? Or are the processes the same , but just faster? Will it still be 1’s and 0’s in 25 years? As you can see, I don’t understand such things!

      • If quantum computing becomes a reality to the point it breaks crypto, it breaks security for everything electronic. Banking, websites, your pr0n account, MB passwords, everything.

        • If BTC stays the same and computing power increases at some point it could be possible to crack certain encryption codes (e.g. RSA). However these days its getting exponentially harder from my understanding, and the BTC consensus could move to other stronger forms of cryptography but it would need to be a migration effort/fork. i.e ECC similar to Monero

    • There was a good discussion on the Market Huddle a couple weeks ago. The current electricity cost to disrupt bitcoin is about $1 million per hour. That was the electricity cost alone. I think they said it would take thousands of computers to do it.

      More realistically, a stroke of the pen from US Congress would kill it for westerners at least. I will again tell the story of how Online Poker was killed with a stroke of a pen many years ago. It was undermining casino profitability and tax revenue. US Congress banned all banks and credit card providers from transferring funds from online poker sites. It didn’t take long to die.

      • The current head of the SEC is very bitcoin friendly. Has said many positive things about it. The legal counsel from Coinbase also was in the most recent administration. This whole narrative that it is going to be banned is nonsense at this point. Do you think now that Wall Street is getting into it that they aren’t going to complain if it is banned? What will it do to Coinbase and it’s multi-billion dollar IPO? Not to mention the crypto industry in the US which is not insubstantial at this point?

        People who think it can be banned aren’t paying attention to what’s happening.

        • Online poker wasn’t banned until it was obvious it would start hurting government tax revenue. Don’t ever forget that Iraq was overthrown for threatening oil supply. The two things you never do is undermine US energy or the US dollar.

          And yes online poker is banned in many western countries including Australia. See what happens to you if you are successful in making a significant withdrawal.

      • FUDINTHENUDMEMBER

        Issue with banning crypto is that you’re essentially banning a whole sector/basket of technologies and innovation with potential myriad applications society-wide.. If you’re banning technology and other states are not, you stand to be left behind.

          • FUDINTHENUDMEMBER

            What then? Ban bitcoin? Folks will find another. Ban crypto currencies? Folks will revolt and/or use VPNs to access ideas, products and services their tyrannical govt won’t let em have. Ban all blockchsin/crypto Regulate crypto (the only real path): Legitimises it.

            Also if the US Gov moves to BAN bitcoin, which is essentially just an IDEA which folks have put faith in.. there will be revolt. Folks already know how cooked everything is. The entire financial system is being held up by numberwang and the openly false promise of ever greater future prosperity for all. Start banning ideas that you don’t like, which have managed to capture traction and the zeitgeist of the times, you risk further anger and instabity.

          • There is no need to ban blockchain, and no need to ban all crypto currencies. The only need is to force them to comply with regulations (AML, taxes, etc). I also believe there is a need to ban artificial/monopolised price inflation, and being able to recover stolen crypto but granted that is just my opinion at this stage.

            I have no doubt everyone will eventually be forced to comply with regulation. That does not necessarily mean existing coin holders will lose all their money. It could be as simple as a direct coin swap with a regulated coin, and let the crims who don’t want to be identified suffer.

            You are naive to think VPNs are some anarchistic haven. Like as if an organised crime syndicate or government agency would never think of hosting a VPN to steal from or monitor you.

          • All they need to do to “ban” Bitcoin is make it illegal to turn it into real money. Same for any other cryptocurrency.

          • FUDINTHENUDMEMBER

            Good points. I don’t expect a full “ban”. I expect things to get regulated and taxed properly. Only thing is regulation moving wayyy too slow in these supercharged times. Look how quick big tech snuck up and now very hard to regulate.

          • Only thing is regulation moving wayyy too slow in these supercharged times. Look how quick big tech snuck up and now very hard to regulate.

            That’s not moving slowly, that’s entrenched ideology against regulation.

    • Think of it this way. The incentive to hack Bitcoin has been absolutely massive. Billions of dollars potentially for success. Every hacker in the world will have attempted it. I wouldn’t be surprised if there have been state organised attempts to hack it by the likes of China and Russia. Yet nothing. I think it’s pretty secure.

      • It’s a standard crypto setup. Same thing that allows VPNs and HTTPS and SFTP to work. Quantum if it happens will crack all these technologies including the beloved Bitcoin.

      • The genius of crypto is that it is not something that can be hacked per se. Its simply data on many machines; with people incentivized to make sure that each of the copies of the transaction ledger are the same. If you can crack the cryptography of the data you can effectively emulate someone else’s account and everyone has no way to tell the difference (and will update their versions of the ledger accordingly).

        i.e. if those original 1.1 million coins Satoshi owns someone manages to find the private key corresponding to the public key of that wallet that’s a big hack (billions of dollars worth). The fact that those coins still manage to stay untouched despite everybody having the data says something.

  10. Gold stalled six months ago when real yields stopped falling. Since then, we’ve seen some dollar weakness, offset by a fall in volatility and more recently a slight lift in real yields. Gold is trading slightly weak to my model, but not especially.

    It’s not performing right now because the dollar is stable, real yields are rising and volatility has come down; focus shifted to precious-industrials like silver and platinum.

    I don’t think it’s especially suffering. It’s an asset, flow can’t drive price indefinitely. People overstate the importance of flow.

  11. The only thing Bitcoin has on its side is ‘network effects’; the belief that it will be the coin of choice. But If you believe blockchain technology has overcome trust issues in exchange, then operationally, you’d want to use the cheapest coin possible to make those transactions. So the key constraint on Bitcoin isn’t the number of coins that can be made, it’s the willingness of people to shift to cheaper alternatives. The economist in me says that’s a certainty.

      • Right. it’s store of value people are interested in and that comes from the scarcity aspect. Why jump into cheaper coins if you are trying to store your wealth?

        As for MB, at what price did they first start criticizing Bitcoin? My guess is a tenth or less of current price. They are as bad as Peter Schiff when it comes to steering their readers away from good investments. And all because they simply don’t want to understand it.

    • With exchange the price of the coin doesn’t matter, as long as both parties can buy and sell at the same or similar price, within a short period of time.

      The transfer fee matters, and with btc you can send millions around the world for pocket change.

  12. some of the Aussie gold miners will be looking very cheap in the coming weeks/months… pair that with the fact that they are printing money currently, its looking like good buying

  13. You obsess about physical-ness but the reality of money is that it is information. Gold was the medium used for that information for most of history because of certain properties that it had. Being imperfect, it was eventually replaced by paper, but that has it’s own problems. If you look at the properties of Bitcoin you will see that it is the best medium for money and a much better store of value than Gold.

      • All that does is stop transactions from taking place. It doesn’t delete the currency. When the grid comes back up your coins, as long as enough of the nodes have the same “ledger” will still be there.

  14. Lmmao at all above ….. soooooo much anguish over uninformed “opinions” about the hierarchy of token of exchange and various perceptions about them depending on the “individuals” environmental biases and with it the emotional baggage it transfers.

    Some seem to completely ignore what Gresham’s Law argues E.g. tokens matter not when corruption is the order of the day and if your not doing it someone else will take your dinner plate and brake it …. so be first and not look back …

  15. buttzilla team forever

    how ’bout just not buying BC as a point of morality? you are absolutely enabling child prostitution, trafficking, black market trades, terrorism, white power and russia/china syndicates. shame on you if you buy/hold this garbage – and you will reap the rewards.

  16. Why is BTC the only crypto going up at this rate?
    What about the others, LTC etc?
    Genuine question that I’d like to know the answer to because as I see it although there may be digital scarcity in BTC itself there is no reason why an infinite number of other crypto’s, either identical or slightly different, can’t be created.

  17. You have been writing about bitcoin for 8 years and you’ve been consistently wrong. Everyone you’ve discouraged has missed out on once in a life time returns. What’s it going to take for you to admit you got this wrong?

    (Fan of most of your other work)

    • Been rwiting about it for 4 years.

      I’d be happy to admit fault but all I have done is point out from the beginning that BTC has no value beyond a bit of sentiment, that it has immense problems finding that value becasue it is neither a store of value or medium of exchange. Most importantly, success will result in failure as regulatory risk comes to bear.

      These are all simple facts.

      As for a lifetime of returns, sure, in retrospect. But if the US Treasury banned it tomrrow it would still begin its journey to zero.

      BTC is not investment. It’s gambling.

      Where I was wrong was that it would not hurt gold. We went long gold for exactly the unfolding macro condtions that we see today. Yet gold has done very poorly which has held back returns.

      This was my call and I got it wrongly wrong.

      • You likened Bitcoin to tulip mania in 2013 on this website.

        None of your points are simple facts and can be refuted with some pretty basic research. The US Senate Committee on Banking said 2 years ago that the US would not be able to ban bitcoin.

        There’s clearly serious confirmation bias going on in your analysis. Bit concerning as an investor in your fund.

        • Come now. It can be banned any time. The moment bankers feel threatened the rules can be changed. It’s obviously a bubble. One the wildest I have ever seen. Since 2013 BTC has been destroyed twice. Another round is coming for certain

          That doesn’t mean it will go away tomrrow. We still have tulips. But good luck making any price case for it.

          The fund wouldn’t and can’t invest in it. It’s a core holding fund, conservative by definition. That’s on the label and the perspective I write from. BTC is gambling for risk capital.

          These are all simple facts.

          That said, if it were eventually accepted by governments for some unkown reason and vol dropped sufficiently for it to compete with gold and it developed reliable price drivers then we might use it as as inflation hedge in future cycles. But we’re along way from that.

          Crypto is still a tiny market.