International Forecaster Weekly

Battle for the Ages

Gold vs. Bitcoin. Who’s going to win? Right now, gold is taking an absolute pounding, and Bitcoin continues to hold ground or gain. Who’s the ultimate winner here?

Gold Bitcoin

Bob Rinear | March 30, 2021

Gold vs. Bitcoin. Who’s going to win? Right now, gold is taking an absolute pounding, and Bitcoin continues to hold ground or gain. Who’s the ultimate winner here?

Times change, and that’s a reality we all understand. If you were a horse drawn buggy maker in 1895, the writing was on the wall, the motorized car would be putting you out of business soon. Technology evolves over time, and there’s thousands of examples of that newer technology being the death knell of existing businesses.

I could probably give a few hundred examples if I gave it some thought, but I think you all get the drift, as technology improves, people migrate to it. Nowhere has that been more exemplified than in ‘music.” 

In the late 60’s and early 70’s, you used Reel to Reel tape recorders to capture and play back your music. Then came the “8” track. All the companies that made reel to reel, either had to adopt and start making 8 tracks, or.. since they were still very hi-fidelity, market to a higher end listener.

            But the 8 track gave way to the cassette tape. Once again, technology was making things smaller, better, easier to use, etc. 8 track makers had to switch again, or go belly up. From there we have all the other offshoots that have ended up in the dustbins of history. The VCR? Gone, replaced by DVD. CD’s are being replaced by ipods, streaming music, etc.

I have a perfect example in a drawer in the garage. In 2000 I bought a VERY expensive Video camera to record our stock seminars around the country. I remember the price well, as I hemmed and hawed at paying that much. It was 1600 bucks and in the year 2K, that was a significant amount of money.

But it used high def video cassettes, and it was big and sort of clunky. It was put to rest by newer digital cameras of better definition, smaller size and often much cheaper.

Right now, it appears to me like we’re witness to a change in technology that for the first time, seems to be invading the idea of money. All those who scoff at gold, calling it a pet rock, a relic, etc, have decided that this blockchain driven thing called bitcoin, is the new gold and they’re buying it.

Now, I perfectly understand the younger of us getting swept up in the craze. Some people are technology addicts. Every time a new phone is released they have to have it. Every time a new music format hits they have to have it. Every time a new TV technology hits, they have to have it. So naturally when Bitcoin started competing against gold as a “store of value” they have to have it.

What does surprise me to some extent is the amount of people that were solid believers in gold, actually selling their gold and buying bitcoin instead. And that’s exactly what’s happening here.

I even understand the thinking, despite not owning any. If gold took “forever” to hit 1900 the ounce, and Bitcoin has gone from 0 to 50 grand in ten years, hey why not jump on board for the ride to 100,00? It’s a valid point, and I get it. But is it that easy, that’s my question?

Now, make no mistake, IF and that’s a massively huge IF, they allow bitcoin to live and breathe side by side with dollars/Euro’s etc, and don’t regulate it to death, then maybe it’s time that gold has indeed finally been edged out of its seat of supremacy.

But I simply don’t believe that. Maybe I’m going to be proven wrong about this, but I am having a really really really hard time believing that “they” are going to let the peons have a currency that competes with their dollars, Euro’s, Yuan’s, Lira’s, pounds, etc.  They (the elitists, the bankers, the money people at the top of the chains like the IMF, BIS, central banks, etc) control “us” the people, with their money.

Money is their control mechanism. Why is counterfeiting illegal? Why can’t I just make dollars off my home computer? Because it competes with their money. They can’t have that. Why have countries been bombed into oblivion for suggesting they were going to gold as settlement instead of dollars? Because they do not want the competition.

If Bitcoin is allowed to be a completely stable, currency, accepted everywhere business is done, to pay all debts public and private, why do we need dollars, Euro’s, yuan’s etc? We wouldn’t. So, to believe Bitcoin will attain that sort of respect and freedom, I have to assume that Central banks and Elitists from Brussels are going to be okay with that? They’re just going to say “hey, you don’t need to settle international debts in dollars any more, just use bitcoin??” 

Let’s bring it closer to home. The ONLY and I mean only reason the US has been the Superpower it is, is because we have the worlds reserve currency. That alone is the reason we’ve been able to outspend every other nation, and live so high on the hog. Now I’m supposed to believe that Bitcoin will be allowed to compete head-to-head with that?  Well, I don’t.

Now granted one thing that bitcoin has going for it, and one of the only reasons that I think it hasn’t already been banned, is because in the scope of things, it’s use is miniscule. I’ve been in a room with over 150 people and not a single one of them owned any bit of bitcoin. Not a fraction.

So, it’s use is very small, and I tend to think that’s why Central banks are looking at it like a novelty. But if it ever gets too big for its britches, I suspect they’re going to do what China has done and ban it, or like India has proposed and just ban it. Money is the elites control mechanism over people. That is why they have manipulated the price of gold for so long. They don’t want the peon’s buying gold (or silver) because as their phony dollars lose value, gold generally rises. That proves to the masses that their  fiat currency is crap and they want something better. So, they squish it.

Gold’s been taking a beating. For some, it’s a disaster, as they bought in the 1700’s and 1800’s and are now down some. For others it’s a gift, as they look at this dip as a buying opportunity. I’m old, I’m a dinosaur. I like the price coming down, as I’d like to buy a little more. As I told you all years back, when gold got over 1600, I stopped buying it. But now, with Gold at about 1680 Tuesday, I’m not against picking some up.

Gold can’t be ruined by some central banker. It’s no one else’s liability. It’s been the riches of kings for thousands of years. Has it finally lost its crown? Time will tell, but my feeling is no. I think the dip is a gift. Just my .02 cents.