Central Banks Dump Bitcoin Dreams—Gold Is Back in Charge
people turn to Bitcoin for its unrestricted freedom and resistance to seizure, while governments favor gold for its geopolitical stability and historical reliability.
Quick overview
- Bitcoin is favored by individuals for its decentralized nature and resistance to government seizure.
- Governments prefer gold for its historical reliability and geopolitical stability, especially during international unrest.
- Arthur Hayes highlights the contrast between Bitcoin's role in individual sovereignty and gold's function as a sovereign asset.
- Recent geopolitical events have led nations to increase gold purchases while moving away from US Treasuries.
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People turn to Bitcoin for its unrestricted freedom and resistance to seizure, while governments favor gold for its geopolitical stability and historical reliability.
Arthur Hayes emphasized in a recent interview that while sovereigns hoard gold in the face of international unrest, Bitcoin thrives on credit expansions and provides individual sovereignty. As evidenced by the US freezing Russian reserves in 2022, sovereigns purchase gold to guard against asset seizures.
Bitcoin cycles correspond with worldwide money printing from the 2009 financial crisis to the COVID-19 stimulus. People favor it; Hayes projects rallies through 2027 because Bitcoin is decentralized and allows for wealth storage without government interference.
Former BitMEX CEO Arthur Hayes makes a distinction between gold as a protection for sovereign powers and Bitcoin as a tool for individual freedom.
Governments choose gold because of its longstanding political neutrality and millennia-long role in international trade, while individuals choose Bitcoin because of its decentralized, seizure-resistant features that enable wealth to be carried mentally via seed phrases. In the changing financial landscape, this gap reflects larger conflicts between individual autonomy and state control. Because gold has a long history in international politics and the economy and is a dependable store of value that is impervious to contemporary financial manipulations, governments prefer it.
Nations like China and Singapore increased their gold purchases and divested from US Treasuries after Western countries froze Russian central bank reserves in 2022 due to the conflict in Ukraine.
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