Dr. Jan Wüstenfeld
Dr. Jan Wüstenfeld|Mar 04, 2025 15:16
Amid global uncertainty, trade wars, and shifting power dynamics with the US in the middle of this, both gold and digital gold are positioned to shine. Gold continues to break all-time highs after all-time highs. Bitcoin similarly reached record prices in 2025 before its recent cooling period. Those currently driving Bitcoin's price movements do not fully grasp its fundamental value proposition. Bitcoin is like gold, but digital. Bitcoin is like gold, but scarcer (21 million only). Bitcoin is like gold, but more easily divisible. Bitcoin is like gold, but it is easier and cheaper to transfer, with no physical or digital borders stopping it. Bitcoin is like gold, but more easily and instantly verifiable without specialized equipment. Bitcoin is like gold, but easier to securely store. Bitcoin is like gold, but more resistant to confiscation by governments or institutions. Bitcoin does not need a US strategic Bitcoin reserves. The market disruptions by tariffs and more are already enough. The latest Atlanta Fed GDPNow estimates predict a decline in US GDP of 2.8% for Q1 2025. Other countries across the globe will not be unaffected by the disruptions this causes. Central banks and governments will be forced to show their hands and act. Yes, tariffs will drive up prices. But if governments and central banks are forced to choose between fighting inflation and supporting the economy, my bet is the latter. Act accordingly.
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