We sure do live in interesting times. My own view on bitcoin is that I'm not convinced yet, but I watch it. There is a concerted CB push to create CBDCs and if they do that then bitcoin is going to have some serious competition. However, CBDCs are not competition for gold. Gold will retain its value and continue to be the store of value of last resort for everyone, including CBs. Recently, gold was declared a Tier 1 reserve asset. In addition, ISO 20022 is coming which will pave the way for CBDCs. So those two things alone make me cautious on bitcoin. I want to like it and own it, but I'm far more comfortable with gold, given its 5,000 history.
One thing is for sure, currencies of all types are entering a period of massive competition and the USD is not at all certain to come out of it a winner, especially considering that pretty much every American has gone nuts and thinks, despite all of recorded monetary history telling us otherwise, that MMT, UBI, QE, and endless deficits are great ideas. That guarantees the destruction of the USD, which will open the door to all manner of other currencies. The days of USD hegemony and reserve currency status sure do look like they have reached the beginning of the end. |
