The jewelry and industrial value of gold is minimal to its reserve value. Vast majority of gold is in form of bars sitting in national vaults. Zero intention of ever using those bars for jewelry/industrial applications.
Bitcoin’s advantages over gold include
- proof, security, and cheapness of reserves including greater protection from war pillage.
- Cheaper and secure transactions. war, piracy, shipwreck proof. Divisibility is also a transactional advantage.
- wealth escape options, including banking/sovereign failure and sanctions.
- Cryptographic applications and protocol extensions including layer 2. But other crypto networks depend on bitcoin.
- Better “tokenomics” than gold. Mining supply of gold increases when prices rise, and also attracts jewelry owners to trade in their jewelry for it to be melted. New reserves always possible finds.
- Points 2 and 3 also make for faster and more secure banking system settlements. You don’t need to rely on counter party bank not declaring bankruptcy for next 3 days.
Bitcoin is mostly USD backed?
No. You can buy bitcoin miners in bitcoin. Electricity costs are always charged in local currency.
There will never be a default on US debt unless it’s by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won’t be Bitcoin.
QE worked last time because China helped QE by also buying up US bonds. A much larger QE with US at war/tariff war with whole world will put USD at a credibility crisis, if not in next recession then the one after that. Fractional banking is the real ponzi scheme, and a banking crisis, a property collapse that causes bank collapse. Colonial currencies are not an option to escape USD devaluation, unless they free themselves from servitude. Chinese policy has so far not embraced strong currency value. Bitcoin will always be protection from financial collapse/decline.
Incoming Administration promises to protect oil and gas oligarchs by limiting renewables/batteries/EVs, including potentially destroying big 3 automakers with Canadian/Mexico tariffs. Harming Tesla competitors with loses on their NA investments in batteries and EVs, that includes tariffs on JPN ROK batteries. Coercion of EU colonies is likely to force their dependence on extortionist US oil and LNG imports if they want to keep US in NATO, for the privilege of buying extortionist US weapons. NATO CIA stooge leader is telling EU that they need to give up pensions, social security, and healthcare, and institute drafts, to get to 3% of GDP military spending targets. EU blaming immigrants from US sponsored destroyed lands, instead of their own US subjugation, is certain to be the political climate for abandoning sustainability and prosperity.
Coercing US consumers on NG electricity expansions, with increased LNG exports, together with datacenter expansions, is attempt at boosting NG prices, even when $2/mmbtu is not competitive with solar for new electricity. Utility oligarchs are certain to feed better at the trough if they support NG extortion agenda instead of renewables.
The main point is that in addition to cheaper energy, outside of US extortionist energy pricing, foreign datacenters also allow for global customers.