I can’t believe the timing of this article on Bitcoin. Just this morning when I was checking the markets I saw that Bitcoin was just over $48,000. I remembered that was near the top of the resistance zone the last time I looked at the Bitcoin chart.(something I only do after significant moves either up or down)

So I checked it for the first time in a while to see where the next resistance levels might be. I said to myself it could easily make it to 50k then 55k and on towards it’s ATH and beyond, because it has penetrated the real resistance and from here, there isn’t a lot left. ( I will get back to why it is likely to run)

Now I just read the article below and the author makes GREAT points about what is driving Bitcoin higher.(The same factors driving the stock market bubble as well as his thesis about escaping the system) He is right about most of it but leaves out one very important ingredient. I was going to write about Bitcoin likely going on to make new ATH’s before I read his piece and I was going to make the point that much of the money going into Bitcoin was money that more than likely would have gone into gold and silver instead.

Gold and silver would be up at much higher levels already, if Bitcoin wasn’t around to compete, especially with younger investors who either don’t save in real money(physical precious metals) or prefer the speculative gains that crypto has provided them since it’s inception.

What the author of this excellent piece misses, and crypto investors will likely realize eventually, is that you may be protesting and escaping the system with Bitcoin but you are still putting your money into a non productive asset with no value and no history in any of the three requirements for Money.

While gold has also little productive value it has survived as money for thousands of years precisely because it is tangible, stable, divisible, a store of value and wealth and a unit of account that everyone around the world recognizes and will take in exchange for goods and services. Bitcoin is bits of computer code that some may value and some may take in exchange for goods and services but isn’t stable nor a store of value.

It may have been one of the best speculative vehicles since it’s inception but I doubt it lasts longer than many previous speculations like tulip bulbs, beanie babies even collectibles that come in and out of favor from time to time. Even artworks by great masters have usually been great speculations but are not money and fluctuate greatly in value.

I have no doubt that there will be periods when bitcoin may soar higher in fiat currency terms, but that doesn’t make it a good way to escape the system. Just as gold won’t compete with the NVDA’s and SMCI’s of the world when they are on their way higher, it won’t collapse when those and other stocks and bubbles including future ones in bitcoin inevitably correct because people need the money to buy the necessities of life.

If one wants to escape the system, physical precious metals in your own possession are the way to do so. That doesn’t mean one can’t speculate with some bitcoin as well. Just understand the difference and don’t be surprised if some day either that system pulls the plug on it and or everyone decides that like tulips there is nothing there, not even a pretty flower come Spring. https://www.zerohedge.com/markets/catalyst-could-standardize-bitcoin