Gold Bugs With Loose Screws

Preface: I own gold and will buy more gold, probably about 5% of my portfolio for tail risk events. Most of my net worth is in Bitcoin.

1) Was watching a video on gold and bitcoin, and I swear these people are completely illogical. I get the intrinsic value arguments…though I would argue a money that is pure extrinsic value is an EVEN BETTER money because it is JUST money and not subject to the whims of industrial demand.

2) But many gold bugs don’t seem to understand that there is a substantial monetary premium (extrinsic value) on gold and this part of gold’s value is also “backed by nothing”. But in this instance, it truly is nothing, whereas Bitcoin is backed by the world’s largest and most decentralized and unstoppable network.

3) Some criticize bitcoin as you’re not able to purchase things with it and can only exchange it for fiat…which is exactly what they’re planning to do with their gold, holding it as a store of value. I’m fine ignoring the fact that we CAN buy things with BTC actively, whereas no one is accepting gold for payment.

4) And the homies going on about “good luck when your power goes out”…perfectly valid to consider tail risk events, but should you position your portfolio 100% for that? No. We’re in a digital age and can and should embrace a digital money. If you think there’s a chance we go back to pre-electricity and pre-Internet times as a society, it likely doesn’t matter what you invest it, but also shouldn’t hold any stocks at all.

5) Gold and silver led me to Bitcoin. They’re good analog monies…certainly better than fiat. But gold bugs seriously need to get their shit together in their criticisms of Bitcoin because they are seriously weak.

If any of this resonates with you, let’s chat.

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