With Bitcoin experiencing a great deal of investor inflows in 2024, especially after Trump was elected president, how does it compare to Silver as a “Store of Value?” Well, we may find out our answer soon enough as the next three months could be very critical for the Bitcoin Price.
In this YouTube video Update, I compare how much money has moved into certain segments of the Bitcoin Market vs. Total Silver Investment since 2008. Before Bitcoin came on the market, investors who wanted to protect their wealth mainly focused on gold and silver. But this has changed as they now compete with Bitcoin. So, it’s essential to understand what is happening in the Bitcoin Market.
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It’s always interesting to read the comments on YouTube a few days after these are posted.
Steve made a “lite” post, e.g. he didn’t mention the cost by Marathon to mine 1 Bitcoin. That would have been rejected by ignorant Bitcoin “investors”.
I call it interesting because the level of ignorance and often arrogant confidence is on display.
I suspect most people envision a future that is completely digitized. This includes people who see a golden age of AI nirvana coming soon and naturally embrace a digital currency. Had lunch with a guy like this the other day. OMG, I can show people how to write a newsletter with AI in a fraction of the time it would have taken before!! Others see a more dystopian future with digital IDs and CBDCs as a central feature of the new hellscape.
Personally, I don’t see all the AI and technology in general thriving for more than another 2-3 years if we have any kind of serious contraction in energy supply. Buckle down, weather the storm. The old paradigm will pass and a new one will emerge with a new set of problems, namely how to live without all this technology. It’s like the Biden regime. The nightmare is over, but we woke up to a new set of issues. I envision any paradigm that requires burning less diesel, gasoline, jet fuel and natural gas is going to drive some things seriously offline. Ironically, AI is doomed to fail unless it actually does fulfill its promise to achieve superintelligence, complete with a new energy paradigm that dramatically lowers the natural resource cost structure of everything that we do, including transport. The high energy cost of AI means its already failing in one of its core promises.
“The high energy cost of AI means its already failing in one of its core promises.”
AI is a short-term money grab. Plus, there’s no intelligence in it. All this high-tech will achieve is exploiting the last few percentage points of our environment. It gets us to collapse faster and faster is better… everyone knows that!
I really like what TD has to say, starting at his “Personally…” re old and new paradigms as a natural evolutionary process. Good Stuff!
Evolution is naturally metabolic. Digital algorithms are Cartesian-analytic, I.e., not metabolic.
Logically it seems apparent that we can claim cost of production of one oz or Ag “provides a floor.”
My question is can we say “cost of production of a bitcoin provides a floor…?” Using EROI as a measure compare PMs and bitcoins.
Business practices, especially shorter terms of depreciation, seem to be a bigger issue here comparing PMs to crypto mining.
I am trying to KISS, 🙂
Doug.
The cost of production of Bicoin is not a floor for the cost in the marketplace, and never will be. Copper, silver, etc. are physical, finite, hold-in-your-hand elements. Bitcoin is closer to a concept than anything else. And of course a symbol or token for a lot of wasted energy and time.
It’s costing one of the largest Bitcoin miners (Marathon I think) over $110,000 for each Bitcoin mined. Compare that to the current cost in the marketplace.
Today on TV I saw Byron Donalds, who’s running for Gov. of FL say that BTC has proven itself to be a store of value and wealth. I can’t understand where people like that are coming from. Are they really that uninformed? He’s a smart person so I won’t call him stupid but…..? Is this gaslighting, thinking they can get away with it and to what end?
Of course the same can be said for Trump on this issue. Wouldn’t it be great to have a face to face with him armed with the facts?
Thank you!
Thanks for the analysis and presentation, Steve.
There is a building floor on Silver … higher cost energy inputs, political instability and noises regarding tariffs will push this floor higher.
BTC and the satellite meme-coins in the crypto-world are a shiny distraction … a very large distraction with a lot of gas in the balloon. There is no objective means to illustrate BTC as a Store of Wealth (Value). The political class and FOMO-HODLrs can continue to blow the horn — “get on the bus” serenade to crypto… I will continue to prepare for the long, cold winter.
Well, looks like Bitcoin just shot up to over $94,000. It’s a strategic reserve!! As a layperson looking at technical analysis, this is part of the reason it looks like bullshit. The rules clearly apply to some assets more than others. Silver has to keep testing resistance at $33 for years. Not Bitcoin, it just shoots up overnight like a knife through hot butter.
Fresh off the newsstand … Trump Administration announces Crypto Strategic Reserve…
https://www.youtube.com/watch?v=RFBIMeoIJzc
And BTC and its meme-cryptos jump up and through the hoops.
Sigh… I just just turn the computer completely off at least once a week … that Sunday Day of Rest concept has a bunch of appeal.