Suddenly gold is worth more than crypto faeces

Tuesday, 25 January 2022

Hoocoodanode? Crypto led last night’s bizarro world bounce in stocks:

Yet BTC is still down by half versus the gold price that is stable and firming:

What is being revealed here is that the idea that crypto is “digital gold” is a bit of a joke. The notion only holds so long as monetary profligacy rules in the US. But the moment that that passes, crypto ceases to have any rationale at all, whereas gold can remain firm on a range of safe haven issues including geopolitical:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.