The Battle For The New Monetary Order

Battle for the New Monetary Order: Gold vs Bitcoin00:00

There is a battle for the new monetary order between gold and Bitcoin. Right now, it's not looking good for Bitcoin. If Bitcoin falls 90% for the next four years, we'll refinance the debt by rolling it forward. Banks would lend because of that.

For the past several decades, the world worked with a specific monetary structure. To grow the economy and expand GDP, debt had to expand. To expand debt, money had to grow. Most of the world's capital flowed through the US dollar into financial assets like the US stock market, which is why stocks have outperformed almost every other investment. Bitcoin was born into this expansionary period of endless money printing.

Now the system is reaching a breaking point because debt has exploded and is outgrowing the economies that support it. The global rules-based order is coming to an end. The international order based on rights and rules no longer exists.

Throughout history, when this happens, money looks for the safest neutral asset, something not tied to a specific country or government, outside the system, with a finite supply. Historically, that was gold. In the modern era, many believed Bitcoin was the digital equivalent.

The world thought that if uncertainty persists about the new system, the hardest asset is the safest bet. Bitcoin, being digital, portable, and finite, was expected to outperform everything, including gold. But gold is breaking out to new highs. Central banks are buying physical gold at the fastest pace in decades. Bitcoin has lost value relative to gold.