Gold just crossed $30 trillion in total value — the first asset in history to reach that number. Gold bugs are taking a well-deserved victory lap.
But their strongest argument actually works against them.
They point to gold's real-world utility — electronics, jewelry, space tech — as proof of its superiority as money. About 50% of gold demand comes from jewelry and 7-10% from industrial use. That means gold's price gets pulled around by consumer spending and manufacturing cycles instead of reflecting pure monetary demand.
When prices rise, miners dig faster, expanding supply. Every ounce turned into a necklace or circuit board leaves monetary circulation permanently. The very features gold bugs celebrate are what fragment and dilute its monetary base.
Sound money should derive its value from one thing: people choosing to hold it as money.
Bitcoin has no jewelry demand. No industrial applications. No competing use cases dragging its price off course. Its supply is fixed at 21 million — no gold rush, no asteroid mining, no technological advance will ever change that number.
Gold was the best money the physical world could produce. Bitcoin is what happens when money finally moves at the speed of light.
I break down why gold's "utility" is actually its monetary weakness — and why bitcoin's lack of it is a feature → firebtc.io/p/gloating-goldbugs
But their strongest argument actually works against them.
They point to gold's real-world utility — electronics, jewelry, space tech — as proof of its superiority as money. About 50% of gold demand comes from jewelry and 7-10% from industrial use. That means gold's price gets pulled around by consumer spending and manufacturing cycles instead of reflecting pure monetary demand.
When prices rise, miners dig faster, expanding supply. Every ounce turned into a necklace or circuit board leaves monetary circulation permanently. The very features gold bugs celebrate are what fragment and dilute its monetary base.
Sound money should derive its value from one thing: people choosing to hold it as money.
Bitcoin has no jewelry demand. No industrial applications. No competing use cases dragging its price off course. Its supply is fixed at 21 million — no gold rush, no asteroid mining, no technological advance will ever change that number.
Gold was the best money the physical world could produce. Bitcoin is what happens when money finally moves at the speed of light.
I break down why gold's "utility" is actually its monetary weakness — and why bitcoin's lack of it is a feature → firebtc.io/p/gloating-goldbugs
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